Globalization's Impact on Accounting Education

Globalization is the process of integrating economies, societies and cultures through communication, transportation and trade. Large businesses and corporations now have to be mindful of not only the environment and cultures within their region but throughout the nation and ultimately across the world. Some people do not support globalization because they are afraid that it will result in sweat shops and environmental degradation amongst many other negative outcomes; however, since globalization is inevitably becoming the societal norm, it is important that future business leaders are taught with this objective in mind. While globalization is nearly impossible to prevent, with the correct education and practice, future business leaders should be able to reduce the preconceived destructive results of globalization from occurring. With that being said, Globalization has a huge impact on accounting education.

Education policies and practices is one factor that has been affected by globalization. More specifically, many concepts are being reevaluated and taught differently. These terms include but are not limited to the following; culture, in port/export, international trade, foreign market entry, ethics, market exchange rates, restrictions on trade, free trade laws, IFRS (International Financial Reporting Standards), and GAAP (Generally Accepted Accounting Principles). These words are now being taught with the ideology that students will grow to work in multinational corporations in which they are encouraged to understand how countries around the world conduct business. In the near future, if not contemporary, young scholars will also be required to be knowledgeable and able to differentiate the political, economic, and market systems of every country; however, with globalization growing so rapidly, it would not be a surprise if every country complied with one set of laws and standards in the future. In fact, according to USA Today, Sir David Tweedie (chairman of the International Accounting Standards Board) stated that "we must eventually end up with a common system of regulation, auditing and accounting." With that being said, there may be many issues and conflicts with the many requirements in obtaining a career in the accounting field.

Since classes are constantly being added to accounting education the requirements may create a hinder on the development of pre-existing accounting professionals. In fact textbooks are revised annually and it will soon be mandatory for students to take one or more foreign language class. While accounting analyzes the history of financial decisions and documents, in order to keep current accountants up to date on the contemporary and future business aspect, companies are demanding that their employees attend seminars, workshops, and classes relating to globalization. This may create a burden on people that have been with a company for years readjusting to the ever changing business standards. It is in the best interest of accountants to submit to the wishes of their employer because those that do not comply with these requirements, may ultimately suffer with outsourcing of accounting careers to foreign countries that are familiar with international standards. While there are a few discrepancies relating to the educational requirements in obtaining a degree and maintaining a career in the accounting field, there are both positive and negative effects of a globalize education system.

Globalization creates many opportunities for both US born as well as international students. American students will be capable of traveling to large developing business corporations in countries such as Asia and Europe for work. International students whom attempt to obtain degrees in the US will be preferred (in the US and other countries) than native born citizens. With that being said many international students will establish a career in the U.S. which will ultimately create an "unbalance in the supply and demand in the US accounting job market" (Articles base, Globalization's Impact on Accounting Career). It is unbalanced because foreign countries are not able to employ the best candidates to operate their businesses in order for them to compete in the globalize market. It is quite obvious that globalization is affecting accounting careers; however it will continue to influence the way future accountants obtain positions in the field.

In the end Globalization plays a huge role on accounting education. Not only are the effects both positive and negative, they are ultimately inevitable. It is important to educate accountants on the standards of other countries so that they are thoroughly knowledgeable in their field because many businesses operate with countries across the world. Textbooks and classes are being updated annually in order to remain consistent and up-to-date with business standards. While the requirements of obtaining a degree in accounting are complex, the journey towards achieving is well worth the time in effort.

Globalization and the Impact on Accounting and Education

In today's society, it is not uncommon for a company to move a portion or the entirety of its operations overseas. This action is known as globalization and has been increasing for many reasons. Cheaper labor, wider customer base and lower taxes are a few of those reasons. With the increase in globalization comes a change in the way students are educated about business. Accounting is the root of business and with the growth in globalization, accounting education has begun to change.

The two main set of standards being used are International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP). Over one hundred countries throughout the world are using IFRS while the United States has been using GAAP for over seventy-five years. Companies that have begun to offshore and send business operations overseas have begun to find difficulty in analyzing and comparing financial reports while complying with both sets of rules. The Securities and Exchange Commission has stated that since the United States is the only country using GAAP, they will abandon it and switch to IFRS. The switch to IFRS is going to have a huge impact on educators, students and accountants currently using GAAP.

First off, the switch from GAAP to IFRS would prove to be very costly. All accounting textbooks would need to be rewritten to include IFRS and educators and professionals in the field would all need to be trained in IFRS. Despite the transition requiring a large amount of money, it would prove beneficial to students and possibly current accountants by providing additional opportunities to work for a wider variety of companies. Current accountants would have to take continuing education classes to fully learn the IFRS standards. The cost of those classes most likely would be paid for by companies, although not all would pay for the cost of these classes. Overall the cost of switching over to IFRS is vastly outweighed by the opportunities that will be available to students, current professors, educators and accountants.

A second major factor in the switch from GAAP to IFRS is timing. The quicker and more smooth the transition is, will also greatly impact the students, and business people involved. Companies that currently have operations overseas will most likely have a more smooth transition because they are most likely already using IFRS or have a better understanding of those Standards. Some accountants might not find that it is worthwhile to have to go back and learn new ways of doing their job especially if they have been using GAAP for many years. Current accountants might decide to take on another position or change companies all together. The students currently in school or soon to be in school for accounting could have a major advantage when entering the work force if they have been taught IFRS. These students would have a much better chance at obtaining entry level positions and working up the ladder to higher positions because of their updated knowledge.

Overall, the switch from GAAP to IFRS in the United States would bring about a huge cost. Textbooks would have to be redone, teachers, educators and current accountants would have to be educated and take time out of their business day to learn the new standards. Students currently in college for accounting will have to stay and take extra courses to be educated in the IFRS standards instead of the GAAP standards in which they are currently being taught.

Companies would be spending a lot of money to send their accounts to courses, seminars or workshops to update them in the International way of recording financial reports. Despite the enormous cost of switching standards, the benefit of switching as soon as possibly can create better job opportunities for the current and future accounting students. As the United States abandons GAAP and implements IFRS, companies that have portions of their operations in multiple countries will be able to fully compare financial statements without having to go through the difficult process of using two different sets of rules and standards when composing those statements.

List of Accounting Courses

Accountants, accounting clerks, bookkeepers and auditors may study for up to five years to prepare for careers in this growing field. While precise course names may vary, coursework in auditing, federal income tax accounting and ethics are usually standard among undergraduate accounting curricula. Programs may additionally require students to complete a related internship for credit in order to apply accounting concepts like budget analysis and database management in a practical setting.

Principles of Accounting

• All undergraduate accounting programs include an introductory course in accounting basics most pertinent for those interested in operating sole proprietorships. Payroll accounting, accountant processes and Accounting for Cash are only a few of the topics covered in this foundational course.
  

Computerized Accounting

• Undergraduate accounting curricula generally include coursework designed to familiarized students with the latest methods in electronic bookkeeping, database management and how to apply accounting principles using computerized software.
  
  

  Accounting Ethics

  • Through case studies, students will evaluate the evolution of ethics in accounting and discuss professional responsibility. Students will also explore ethical standards set by state boards of accountancy.
    

  Cost Management

  • A cost management or cost accounting course is designed to train students how to manage internal operations within an industrial setting. Project planning, decision-making, budget analysis and profitability concepts are also emphasized in this course.
    

  Auditing

  • Coursework in auditing is standard among undergraduate accounting curricula. Students will learn how to gather and evaluate evidence for an audit, and may even complete a student-prepared audit. Auditing courses also include some degree of focus on ethics and legal liability.
    

  Income Tax Accounting

  • Income tax accounting course offers guidance in tax preparation. Students will develop a familiarization with various tax forms, as well as tax preparation software. A close examination of federal, state and local tax laws is also part of this course.
    

  Governmental Accounting

  • A government accounting course will focus on theories, practices and other special requirements unique to accounting for government and not-for-profit entities, like public schools. Coursework in this area covers specialized reporting concepts and budgeting procedures. Undergraduate accounting programs typically require that students complete prerequisites prior to enrolling in this advanced course.
    

  
  

How to Study for an Accounting Exam

Accounting can be an easy subject but it takes practice and studying to pass an Accounting exam. Working steadily throughout the course will prepare you for the exam. If you try to cram at the end you won't do as well. You need your books and all the practice materials to study for the exam. Preparation is the key to passing.

Instructions

• 1
  Find out what the exam will be on. Your professor can enlighten you but you should know from the subject material that you have been covering. Some teachers give a test preparation class; make sure you attend.
  
• 2
  Review all the material that you have covered in the course. This can be lengthy but if you have been working with the material it shouldn't take that long. Sometimes your instructor will pass out information sheets which include specific areas for you to concentrate on.
  
  

  • 3
    Set up a study team. If you work with other members of your class to review the material you will be better prepared for any questions that may be asked.
    
  • 4
    Ask questions if there is any material that you are not sure of. Approach your professor or ask another student in the class.
    
  • 5
    Answer questions the of others who are having difficulty. The best part about this is while you are answering questions you are learning too so this is a great tool to use as often as possible.
    
  • 6
    Make sure you are prepared the day of the exam. If you need to bring certain items to the exam make sure you do. Some accounting exams are open book; make sure you have your text if you are allowed to use it.
    
    

Accounting Colleges in Kenya

Accounting is a rigorous and time-consuming profession. To become an accountant in Kenya, an individual must graduate from one of the nation's many accounting schools. The accounting schools train students for the realities of the profession and prepare them to take the necessary examinations as required by the Institute of Certified Public Accountants of Kenya.

Bridge College of Professional Studies

• Established in 1993, Bridge College is located in Kenya's capital, Nairobi. The college's School of Business Management offers students an Advanced Diploma in Accounting and finance course. It is an 18-month program that is divided into three six-month terms. Each term costs between 9,000 and 10,500 Kenyan Shillings (between $109.95 and $128.28 USD) as of June 2010. The course offers classes on bookkeeping, entrepreneurship, accounting, business law, financial management, auditing and taxation.
  
  

KCA University

KCA University offers business management courses to students. The university was created in 1989 after a report determined that Kenya needed to graduate at least 400 accountants every year to meet business demands. The School of Professional Programmes offers an Accounting Technicians Certificate (ATC), a Certified Public Accountants (CPA) degree and an Association of Chartered Accountants (ACCA) degree. The ATC course prepares decree holders to maintain accounting records and other related technical tasks. The CPA course allows degree holders to follow up with additional specialized courses in accounting such as the ACCA. The ACCA is an internationally-recognized degree that allows a degree holder to work outside Kenya.

Strathmore University

Strathmore University is located in Nairobi. Its School of Accountancy offers several degrees, including the Certified Public Accountant Course (CPA) and the Association of Chartered Certified Accountants (ACCA). The CPA course includes classes in subjects such as Cost Accounting, Financial Management, Taxation and Company Law. A graduate with a CPA degree can work as accountants, tax managers or go on to take specialized courses in accounting such as the ACCA. The ACCA degree allows a graduate to work outside of Kenya as an accountant and can be taken full time or part time.

Pinnacle Business School

Pinnacle Business School is located in Nairobi and was established in 2007. It offers full-time and part-time students the Accounting Technicians Certificate (ATC) and a Certified Public Accountants (CPA) degree. Students taking the ATC course take classes in Business Mathematics, Principles of Management and Auditing. The CPA course includes classes in Entrepreneurship and Communication, Economics, Cost Accounting, Auditing and Assurance. Each school year at Pinnacle Business School is divided into two semesters. The first semester runs from January through May while the second semester is from July until November.

Choose between the two specializations in Finance

Student Profile

YOU: You are a driven, detail oriented individual. Your previous studies and/or your previous work experience have allowed you to acquire good financial fundamentals. You are passionate about financial markets and more generally about investments and financial products. You aspire to an analyst position within a dynamic fund or an investment bank, with the ambition to move to a managing position later on in your career

Student Profile

YOU: You have excellent communication skills and are numerically proficient. You have acquired some financial knowledge through your previous studies and/or through your professional experience. You want to strengthen your ability to structure investment portfolios and solutions for high net worth investors as well as for institutional clients. You aspire to join a private bank, an asset management company or a family office.

MSc Accounting and Management (1 yrs)

The MSc in Accounting and Management offers you the best of both worlds from an academic study point of view and the range of career options that will be available to you.

• Programme overview

From an academic perspective you can study a range of Management subjects to provide you with the key skills that are necessary for a modern business environment but also develop your Accounting skills in much more depth that would be possible through studying a MSc Management or MBA course. The exposure to two units in Financial and Management Accounting in semester 1 with the ability to study one of these to a more advanced level in semester 2 means that you can elect that stream of Accountancy that appeals to you most once you have experienced the subject. You will have a number of optional courses offered to you from a range of Management, Accounting and Finance units which enable you to focus on areas that are of interest to you.

From a career perspective, this MSc Accounting and Management masters degree will not only provide you with the skills of modern management, but the study of accountancy will ensure that you are able to comprehend the significance of good accounting advice when it is provided to you. You should also feel more confident about discussing this with qualified accountants working within your organisation when important strategic decisions are being debated.
The MSc Accounting & Management, with a range of options to tailor the MSc as you wish, provides you with pathways into careers that would normally be available to MSc Accounting & Finance students or MSc Management students. The blend of Accounting and Management provides you with a MSc that offers the best of both worlds.

To Apply

 If you wish to apply to enrol on the masters in Accounting and Management you should complete a University of Southampton application form and return it to the Academic Registrar.  You can fill out the form online or download an application pack

Programme Structure

 Full-time study on the MSc Accounting and Management course follows a schedule of half-day teaching blocks. A single module, for example, will be taught over six half-days, usually the same half-day each week e.g. six consecutive Monday mornings and half modules are taught over three half-days. Module teaching blocks will be scheduled on different half-days so that students will study several modules during the same period .

Teaching takes place during the autumn, spring and summer terms with a few modules scheduled for evenings and the Easter vacation. These will usually be the optional modules but this is not guaranteed. Formal examinations take place in January and May/June each year at the end of each semester. If you pass the module assessments to a satisfactory standard you are permitted to continue work until September leading to the submission of an MSc dissertation.

 

• Entry requirements

  Typical entry requirements

  Degree

  First or upper second class honours degree from a UK university or equivalent overseas/ professional qualification in an appropriate subject.

  Selection process:

  Intake: 45
  Average applicants per place: 10
  
  Your application to study this Accounting and Management masters degree will be carefully considered by a specialist member of the academic staff who will weigh up many factors; not only your academic achievements, interests and aptitudes, but also your motivation and your referee's confidential report.
  
  We make our decisions in most cases on the application form and supporting documents alone. Candidates who require special consideration, e.g. on grounds of age, disability or non-standard entry qualifications may be interviewed.
  

  Language Requirements

  Applicants whose first language is not English and do not have a degree from a UK university will be required to provide evidence of competency in English by reaching an appropriate standard in an approved text such as IELTS, TOEFL and the Cambridge Certificate of Proficiency in English (grades A-C) or the Certificate in Advance English (grades A or B). Test results should be less than two years old at the time of expected registration at the University of Southampton and must be verified before admission.
  
  * Learning &assessment
  
  
  Your understanding of the subjects covered and your ability to use the knowledge and skills gained will be enhanced through a variety of methods and strategies on this Masters in Accounting and Finance. Some of the key learning approaches that you will experience as a student in the School will include:
  
  • Group work
  Group work provides you with the opportunity to meet and learn to work with many different people through these activities. This is recognised as vital in your development when looking forward to a management role in your future career.
  
  • Case-studies
  Throughout the Accounting and Finance masters degree programme you will be presented with many different business case-studies that reflect the reality of decision-making and problem-solving activities in today’s business environment. The case studies are selected to reflect the specific needs of your programme.
  
  • Learning alongside other students
  This will involve you being part of a unit that could have up to 180 or more fellow students. In this environment you may be given the opportunity to discuss a specific problem or complete a task in small groups.
  
  • You will also be timetabled to meet in a group of about 20 – 25 students with a teacher for classes/seminars that are designed to follow-up the large group lectures. It is in these smaller groups that you will be set tasks, exercises, problem-solving activities or laboratory work.