Globalization has had a significant impact on the manner in which businesses are run today. Firms are catering to global audiences and are privy to their information like consumer culture, economic political and legal structures, which enables them to provide products and services which are in tune with the psyche of their target customers. This is the reason that business students are expecting much more from their education. This is precisely correct for accounting students who are being impacted by the changes in the market brought about due to globalization.
The main challenge that these students face in their undergraduate years to be able to understand the rules and regulations of GAAP – General Accepted Accounting Principles and also to understand the standards set forth by IFRS International Financial Reporting Standards.
This has been useful in the last few years as it facilitates the communication of businesses with each other. This is the reason that current accounting students need to understand the nuances of GAAP. Accounting schools are also changing their curricula to accommodate the changes caused by globalization.
Globalization Is Providing International Opportunities To Accounting Students
Although in the United States the GAAP or General Accepted Accounting Principles are largely being used by businesses, in many foreign countries they have adopted IFRS or International Financial Reporting Standards. This is the reason that is nowadays accounting schools and institutions and ensuring that their students understand the rules, regulations, and principles of both.
This is because businesses have become global and for companies to communicate with businesses in other countries the understanding of their financial methods is necessary. At the same time, many large corporate houses have their offices in many different countries, and there is a need to understand the accounting practices of various countries even for their internal communication.
Students nowadays are faced with the challenge of understanding the rules and regulations of both the GAAP and IFRS if they want to be successful in their careers. However, the positive side to this extra effort being put into accounting education is that it has opened up the avenues for international careers for the accounting students of the US. For these students, there are great career opportunities in India, China, and other emerging economies. This is the reason that the IFRS has become more integrated into the accounting curricula of various accounting schools and institutions. Students don’t just have to understand the different principles of both GAAP and IFRS, but also need to understand the changes that occur when working with both of them. IFRS is also necessary if accounting students want to take the CPA exam which has been updated to include principles of IFRS in the Financial Accounting and Reporting section.