| Globalization has eliminated national borders, | | | | transition in the college classroom should be a |
| technology has increased communication between | | | | slow one. The US GAAP in a bound volume is |
| countries while making time extraneous, and free | | | | about 7,000 pages longer than that of IFRS, so I |
| trade and outsourcing have opened up many | | | | foresee this slow transition being possible. Because |
| business opportunities for new and existing | | | | business issues change rapidly due to globalization |
| businesses. Because of the internet and | | | | and other domestic issues, new textbooks are |
| technology, a person can own a firm in France, be | | | | rewritten and reprinted on average every three |
| located in India and do their business mainly with | | | | years to ensure that students are taught current |
| the US and China. These new business | | | | information. In the subject of accounting, these |
| opportunities mean that the CPA needed to | | | | textbook companies should pave the way and |
| perform the firm's financial work needs the | | | | require the authors to slowly relate GAAP to |
| knowledge of the standards of each of the | | | | IFRS standards, in order to slowly introduce it. A |
| countries. Accounting is predominantly known as | | | | gradual transition will not require additional class |
| the profession that analyzes the past, but | | | | time by accounting majors thus keeping the field |
| because of globalization it is important to look into | | | | attractive to students. Classes are always added |
| the future. As a result, it is important to educate | | | | to the accounting education, but now certain |
| the accounting field on the standards of other | | | | material should gradually be removed or merged |
| countries. The future will also hold the mandatory | | | | together. Professors will need to attend IFRS |
| adoption of International Financial Reporting | | | | seminars as well, because they will need to learn |
| Standards (IFRS) in the U.S. which will change | | | | the material in order to teach it. The approach |
| reporting from rules-based US GAAP to | | | | which I favor the most is for Professors to begin |
| principles-based IFRS standards. | | | | challenging their students with critical thinking, |
| The number of globalized businesses in the world | | | | rather than just teaching the facts. The way to |
| is vast and increasing, which emphasizes the | | | | bring this type of thinking into the classroom and |
| importance of achieving a common accounting | | | | to improve analytical skills is to introduce real-life |
| language. Richard Stolz points out that although | | | | cases, and find the solution. |
| nearly fifty percent of the top accounting firms in | | | | In time, seminars will not be as necessary as |
| the US have multinational clients and have been | | | | students will essentially be taught IFRS rather |
| working with IFRS for years, it is increasingly | | | | than GAAP standards and be tested on it on the |
| important that second-tier firms and their clients | | | | CPA exam. Professionals with the knowledge of |
| also become familiar with these standards. A | | | | IFRS will also be able to explain the change in |
| level of preparedness is needed for this coming | | | | standards to their clients. |
| transition to international standards. Failure to | | | | The worldwide increase of globalization has a |
| prepare will increasingly lead to accounting | | | | profession-changing effect on the accounting field. |
| opportunities being given to foreign, | | | | A complete change of accounting language is |
| English-speaking accountants and firms who are | | | | going to occur, and the entire country needs to |
| trained and experienced with international | | | | prepare for it. I believe that enforcing this |
| standards. It is important to consider the question | | | | transition will also benefit the economy. Keeping |
| of how accounting education should change. | | | | the accounting field adaptable and employable |
| Accounting education at the high school, college, | | | | may prevent outsourcing, prevent rising |
| CPA and professional levels will all have to be | | | | unemployment rates for the accounting |
| modified in accordance to IFRS. Should both | | | | profession, and will make business transactions |
| accounting standards be taught in the future? To | | | | between the US and other countries easier. I feel |
| teach both accounting standards will require more | | | | that requiring seminars be taken and incorporating |
| education hours for students and practicing | | | | a slow transition into schools will be the best way |
| professionals will have to be educated which will | | | | to familiarize professionals, professors, students |
| be costly. | | | | and clients with the new standards. |
| L. Gary Boomer states, "Your education and the | | | | Works Cited |
| CPA certificate were not for a lifetime. It requires | | | | Boomer, Gary L. "No false alarm: Sweeping |
| continual learning, especially in today's flat world". | | | | change is on the way." Accounting Today: |
| Firms should be required to give their | | | | Technology. Pg. 26 Vol. 19 No. 11 (2005). |
| professionals opportunities to continuously learn in | | | | LexisNexis. 4 March 2010. < |
| order to stay employable. There are seminars | | | | IASeminars. 20 March 2010. < |
| offered in cities around the country, such as | | | | "IFRS Transition Issues." PriceWaterhouseCoopers. |
| IASeminars, that provide IFRS training. These | | | | 20 March 2010. < |
| seminars are only two to three day long courses, | | | | Karr, Susan Schott. "Climbing the learning curve |
| which are doable because they will not require | | | | from GAAP to IFRS: moving from US GAAP to |
| much time off of work. The costs of these | | | | International Financial Reporting Standards will |
| seminars for professionals should also be incurred | | | | largely impact the way accounting is taught – |
| by the firm. | | | | all the way from the university level to continuing |
| Because of the increase in global business done | | | | education at the corporate level, and is seen as a |
| between the US and other countries, I assume | | | | joint challenge for the constituencies involved." |
| that the future will hold a complete retirement of | | | | Financial Executive. 1 June 2008. 20 March 2010. |
| the US GAAP standards. Because of this | | | | < |
| assumption, the college accounting education | | | | Stolz, Richard. "Preparing for IFRS; Firms are |
| system needs to change completely. Many | | | | getting proactive with convergence training." |
| universities already require a class on IFRS, but I | | | | Accounting Today: News. Pg. 3 Vol. 22 No. 21 |
| believe in a different approach. In order to teach | | | | (2008). LexisNexis. 4 March 2010. |
| students about IFRS standards, I believe that the | | | | |