Globalization is the development of global integration. More specifically, it is the process of combining economy, social values and cultures through communication and trade. Because of this, it is a key factor to be aware of all the worlds environments and motives. The idea of globalization comes with several positive and negative. Positive including the fact that the world will become more uniform. But save people that this will bring the world into a more communist society with sweating and degradation. Globalization is seen as inevitable and impossible to prevent, but not everyone accepts the changes that occur. It affects so many industries and studies as a whole. The education of accounting is an excellent example of a study against the many effects of globalization.
To understand how globalization affects the education of accounting, the ideas of IFAC and IAESB must be understood. IFAC stands for the International Federation of Accountants. They are a group of 157 members from over 120 countries that are made to represent the 2.5 million accounting staff. They serve public needs and contribute with ideas to make the global accounting industry stronger than ever.
They are the speaking agencies when considering international unit of standards among all countries in the world. IAESB, International Accounting Education Standards Board. This group is more focused on the implementation of a globalized education standard. They find value in progress on contemporary issues related to the accounting profession as a whole, including development of education (Accounting Education).
Bookkeeping training has changed dramatically due to the effects of globalization. The major effect that this causes is a large gap between the principles and education of them between different countries (GAAP vs. IFRS). Because of this, the concept is reevaluated to be understood and used as a policy for international use. In order to be able to revise the education of accounting, many more requirements are required in the institutions. The required amount of credits for holding a Certified Public Accounting license has shifted from 120 to 150 points, which forces many accountants to go to primary school to fill the credit requirement (globalization). More courses are added to the list of accounting courses that must be taken for the student to graduate with a B.S. in accounting. It is predicted that foreign languages and international requirements will now be part of the change so that professionals can gain more knowledge about the integration of the global economy. Because of this, textbooks are constantly being revised and sold as new ones. This also puts a burden on the professors for accounting. Several years ago, the international economy and globalization were not highlighted in their studies and in the professional career. Therefore, they will not be able to teach because of this information that they have a big gap in their knowledge of the subject. This is all in order to prepare students for the increasing difficulties with the CPA test that shifts the importance of globalization (Nolan).
Globalization not only leads to the students being aware of the changes made in accounting education, but also in the field of professional education. These changes in the focus of accounting and international standards hinder current accounting staff and how they develop their methods to current working methods. They already went to school and maintained their CPA license, but they are behind in the knowledge taught now. This will create a higher demand for younger generation auditors and lack of need for the older generation. It will also prevent the demand for auditors who studied in the United States because of their lack of specific knowledge of the principles of IFRS. In the near future, outsourcing will be the most effective and effective way of employing auditors strictly on their knowledge of international accounting standards (Nolan).
Globalization directly affects how the US develops its education in the accounting profession. Due to the inevitable change in international accounting standards, the United States has replaced its education requirements in order to obtain a CPA license. This not only damages students for accounting but current professionals in the industry because of their lack of knowledge in modern international accounting standards. Although these changes seem to dampen those involved in the current year-end study, it is about developing accounting standards to drive companies to the most effective and effective point in which they can.