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Globalization

In: Business and Management

Submitted By franks123
Words 1678
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Executive summary
This research concentrates on the relation between globalization and accounting and how it affects it. The paper analyses the effects of globalization from three different sections, the effects on management accounting, the effects on the Generally Accepted Accounting Principles (GAAP), and negative and positive effects on accountants. From the GAAP perspective, the accounting principles seem to lose supremacy in the world due to the upcoming international rules for financial accounting (Cline 2010). According to management accounting, globalization seems to impose businesses to look deep into the compliance of standards. With regard to threats and opportunities resulting from globalization, the study focuses on what accountants can do to better themselves in accordance to globalization.

Introduction
The business environment appears to get smaller with each passing day. Therefore, accountants face troubles in remaining protected from the progressions that occur around the world (Diaconu and Coman 2006). Globalization hint’s at the regularly changing procedure of incorporation and connection among governments, individuals and organizations. The key three things that incorporate globalization are investment, international trade and information technology (Diaconu and Coman 2006). Globalization moves the world to another level and places it to more at the leading edge statures reliably. Outstandingly, globalization procedures have both negative and constructive effects on accounting (Godfrey and Chalmers 2007). This is noticeable in the sense that, globalization imposes new personal and professional challenges on accounting and creates new career opportunities to individuals familiar with the continually accelerating change that incorporates globalization (Godfrey and Chalmers 2007). Accountants who perceive the open doors…...

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