Michael Mitra TTh 4:10 – 5:40 February 13, 2014
Accounting Profession: Going Beyond Economic Changes
The Accounting profession has a wide scope of practices which enables them to function in many areas in our economy. While it works on various extents, accounting profession influences the financial market. According to the International Federation of Accountants (2007), professional accountants contribute across all sectors of the economy through public practice, private firms, profit or non-profit organizations, and even academic institutions. Having such functionalities come great responsibility in maintaining its public value. “The way that individual accountants apply accounting, reporting and auditing standards has a powerful impact on the stability of financial markets” (Association of Chartered Certified Accountants, 2011). Accounting includes processes such as recording, classifying, summarizing and interpreting financial information. One procedure that is common to this profession is the Accounting cycle. There are ten steps to this cycle. Step one begins with analyzing transactions. Step two – journalize. Step three – Post. Step four – prepare unadjusted trial balance. Step five – adjust. Step six – prepare adjusted trial balance. Seven – prepare financial statements. Step eight – close. Step nine – Prepare a post-closing trial balance, and Step Ten – Reverse (Ballada, 2011). Following the same procedures, standards and principles, the cycle goes on and on. Can this customary accounting activity adaptable enough to meet the changing needs for a sustainable economy in terms of financial stability? “At its simplest level, Accounting is still about summarising and totalling up the financial values and transactions associated with a business or some other enterprise” (Ryan, 2004, p.4). Are these capabilities flexible enough for an accounting profession to adapt in the economic changes? Changes that are taking place throughout the world – globalisation, the power of finance, crises – and to adapt to them by anticipating their effects, discovering new paths for the creation of wealth – advanced technologies, marketing, design, services – in both large companies and Small Medium Enterprises (Centrale Paris, n. d.). Jui and Wong, KPMG Huazhen’s Partner and Director (2004) presented that “professional accountants in business are a key pillar in organizations helping to create and sustain value and growth. Their ability to continue to fulfil these roles in the face of constant environmental changes is vital to their continued relevance”. The expertise of a professional accountant is needed for an economy to become sustainable and progressive. Although the Accountancy Profession in general is procedural and iterative in nature, it is still capable of adapting to the changing needs of our economy because of its prominence in improving business financial management, assisting industries with corporate strategy, and giving reasonable assurance to investing public. Accounting professionals organize themselves around various specialties such as Auditing, Financial Accounting, and Management Accounting. According to the American Accounting Associations, “an audit is a systematic of objectivity obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between the assertions and established criteria and communicating the result to the interested users” ( as cited in Salosagcol, Tiu, & Hermosilla, 2011). “Financial accounting is primarily concerned with the recording of business transaction and the eventual preparation of financial statements intended for the internal and external users” (C. M. Valix,...
Accountancy is the art of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the financial´s form statements that show in money terms the economic resources under the control of management; the art lies in selecting the information that is relevant to the user and is reliable.
Accountancy is a branch of mathematical science that is useful in discovering the causes of success and failure in business. The principles of accountancy are applied to business entities in three divisions of practical art, named accounting, bookkeeping, and auditing.
Accountancyprofession in Bangladesh:
ACCOUNTANCY is a critical component of a market economy's infrastructure and economically sound activity would be impossible without it. Accountancy not only provides information on the financial position of operations but is also the foundation of a country's fiscal system playing a vital role in corporate governance. It enforces prudential requirements for banks, insurance companies, securities dealers, and other market participants. As a result, the accounting sector is among the most regulated in the world's advanced economies in terms of its liabilities towards the society.
In Bangladesh the Institute of Chartered Accountants (ICAB) was founded in 1972 with only 80...
...Accounting, or accountancy, is the measurement, processing and communication of financial information about economic entities. Accounting, which has been called the "language of business", measures the results of an organization's economic activities and conveys this information to a variety of users including investors, creditors, management, and regulators. Practitioners of accounting are known as accountants. The terms accounting and financial reporting are often used as synonyms.
Accounting can be divided into several fields including financial accounting, management accounting, auditing, and tax accounting. Financial accounting focuses on the reporting of an organization's financial information, including the preparation of financial statements, to external users of the information, such as investors, regulators and suppliers; and management accounting focuses on the measurement, analysis and reporting of information for internal use by management. The recording of financial transactions, so that summaries of the financials may be presented in financial reports, is known as bookkeeping, of which double-entry bookkeeping is the most common system.
Accounting is facilitated by accounting organizations such as standard-setters, accounting firms and professional bodies. Financial statements are usually audited by accounting firms, and are prepared in accordance with generally accepted accounting principles (GAAP). GAAP is...
Because we live in an economy it is important to study economics, simply because economics affects everyone. We are part of an economics system, where every day we engage in economic activities. Economics helps us to appreciate that the earth’s resources are limited in comparison to human beings want, which are infinite, and constantly changing along with technology and people’s taste and preference. This excess of wants over what can actually be produced with the limited resources, brings about the basic economic problem of scarcity. Scarcity brings about the choice of what to produce, how the commodity is to be produced and who gets to consume the finished good(s) and/service(s). Economics is important to those involved in economics activities which are everyone: individuals/households, firms/businesses and government when it comes to making these choices. It helps us when making such choices, from the businesses trying to make a profit to the consumers seeking to get more for less and the government trying to obtain welfare for its citizens.
Economics helps us when making decisions about the allocation of such scarce resources so as to best satisfy the needs and wants of individual within an economy. Without going too much into it, economics can calculate the degree of inequality within an economy and helps us understand...
...described in the case.
Change is unavoidable in the existence of an organization. Nowadays, most of the organizations in the business world are facing changing business environment. There is no way to avoid either change or die. The major forces which make the changes not only desirable but inevitable are technological, economic, political, social, legal, international and labor market environments. The case in this assignment is Nokia, the Finnish company, faced problem because of changing customer tastes, new technology and stronger rivals.
In 1865, Fredrik Idestam established a paper mill on the Nokianvirta river bank in south-western Finland. Within two years, it took a cable company and rubber firm to set the new Nokia Corporation on the electronic path. It has become one of the world leading suppliers of mobile and fixed telecom networks including customer services. However, its share in European market beginning to decline and the share in native country decreased about 13 per cent within a few months.
For organizations, there are a number of factors both internal and external which affect their operations. Any change in these factors need changes in an organization.
Each organization has goals and responsibilities related to each other in the environment. The present day environment is dynamic and changes in (PEST factors) social, political,...
the branch of knowledge concerned with the production, consumption, and transfer of wealth.
the social science that studies economic activity to gain an understanding of the processes that govern the production, distribution and consumption of goods and services in an exchange economy.
SCARCITY: THE NEED TO CHOOSE
Scarcity is the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It states that society has insufficient productive resources to fulfill all human wants and needs. A common misconception on scarcity is that an item has to be important for it to be scarce. However, this is not true, for something to be scarce, it has to be hard to obtain, hard to create, or both. Simply put, the production cost of something determines if it is scarce or not. For example, although air is more important to us than diamonds, it is cheaper simply because the production cost of air is zero. Diamonds on the other hand have a high production cost. They have to be found and processed, both which require a lot of money. Additionally, scarcity implies that not all of society's goals can be pursued at the same time;trade-offs are made of one good against others.
The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources...
Economics 1 Assignment
Name: Shaun Neo Wei Qiang
Student CT NO. : CT0209608
Date : 18th April 2014
Module : Economics 1
Lecturer : Mr Wong Hean Hoo
1) Introduction 2
2) Relating to the Article – Inflation 3
3) Some of the causes for inflation 4
4) Managing inflation 5
5) Conclusion 6
6) Biblology 7
7) Actual Article Selected 8
The article I chose Is from Today Online(with approval from Mr. Wong), which is heavily categorized under inflation .Reasons for choosing article due to that its related to present findings and forecast of the general economy. MAS touches on the housing, labor markets, wage pressures and Inflation forecasts.
Economic Terms of Inflation
Inflation can be defined as a continual increase in prices for goods which happens over a period of several months usually. Whenever inflation strikes, the purchasing power of consumers declines and the ability to purchase goods drops. This means that during a period of Inflation, the $X of money you spend only allows you to purchase a smaller portion of what you used to be able to purchase (full portion) before inflation. It can also be deemed as money losing its value overtime. Comparison of the difference in CPI(Consumer Price Index) is also vital. CPI is made up 6,500 of goods and services pertaining to general items or services...
...Statistics and mathematics are everything to economics. infact statistics and Mathematics, the economic field wouldn't even exist.
Economist need statistics to represent data, to track and store information, to identify trends, to attribute value and mathematics to calculate those figures.The way to look at the relationship between statistics and economics is that economics is essentially the study of human decisions and trends, and how these have a financial impact.
Economists rely on information to form analyses, understanding and opinion on the human activity that they are scrutinizing. This information comes in the form of statistical data.
Statistics is the core around which economic deductions are built. It highlights the relationship between figures that would otherwise be meaningless, and is key to economic analysis.
An example of this would be an economist trying to analyze the performance of a car manufacturer over the period of a year.
Figures that show the car manufacturer's sales, profits, costs, and other important economic information would be relayed through the use of statistics.
Although people would be right to argue that economics requires more than just statistics (for example, it also relies heavily on understanding and monitoring of sociological factors), it's undeniable that statistics form an integral part of what...
...rate in south Africa over the past five years has been fairly unstable, It is can be seen from graph from the decreasing and increasing trends over the quarters. South Africa experienced a rapidly increasing inflation rate in 2008, the inflation rate percentage was in the range of 11.5%, in 2009, the inflation rate decreased to 7.1%,in 2010 the average was 4,3% which indicates that the economy was doing well as there was a major drop in the inflation percentage but there was an increase in 2011 and 2012 with the ranking of 5.0% and 5.6 % respectively.
b) Explanation of the trends identified is as follows:
The upwards trends as can be seen from the graph(year 2008-2009) represents an increase of inflation and they can be influenced by the economic events in the country such as excess money growth and price increase in the economy. The price increase is triggered by an increase in international oil prices, a drop in exchange rate nationwide, excessive salary and wage hikes, or an increase in food prices caused by a drought. (South African Reserve Bank, how to fight inflation, fact sheet 3,p2).
Long periods of high inflation are often the result of lax monetary policy. If the money supply grows too big relative to the size of an economy, its purchasing power falls and prices rise. This relationship
between the money supply and the size of the economy is called the quantity theory of money. Pressures on the supply or demand side of the economy can also...