At the beginning of the 2000s, at the point com boom, the world is not the same. From that moment on, rapid growth in technology has changed people from all over the world interacting with each other. The latest and modern technology that has enabled companies to work and interact with other companies in the same state, country, or anywhere in the world. In return, he opened up the idea of rapid globalization in the modern world. Before we look at how globalization has affected the business and accounting loss of international business, we can better understand what globalization is. Globalization is a trend of international trade, investment, information technology, and outsourced manufacturing to accommodate the economies of different countries. This is a very technical definition, in everyday life globalization can be defined as a process of connecting the world.
When we get to know this information and look at the world economic factors, we can see how globalization can be linked to international markets. The business idea around the world is directly related to the accounting profession. That's why I say this because if you are doing business in America, Europe, Saudi Arabia or Africa, the practice of counting, organizing and publishing money is all around the world. It is said that there are many different organizations around the world that need to regulate the company's money. For example, if you have a US based company in Europe when you come to year-end reporting, you use GAAP or IFRS. GAAP is generally accepted accounting principles, and the primary standard in America, while the IFRS (International Financial Reporting Standards) is the main standard in Europe. This brings us back to the questioned interviewer which accounting principles should be considered as the primary.
At present, some of the proposals are based on honored accounting principles that would shift this conversation and make international business reports easier for both parties. One of the biggest theories of the global economy is that it converts all accounting rules into a code. You have to go through the world-wide accounting principles of the countries and select and select the best ones that everyone can agree and from there create a universal accounting standard. It would be beneficial for the world because of the simple fact that such a thing is happening, all countries in the world have already known the laws and rules of other countries. The next suggestion would be if the US started to deviate from GAAP and IFRS. The advantage of this would be for emerging accountants to study GAAP to pass the CPA exam. They learn about the outcome of GAAP, just to get into the real world and lose half of the knowledge because they need to learn the IFRS now. This would allow general knowledge of accounting principles. This would allow them to better adapt to the new accounting or updating of the accounting profession all over the world.
The discovery of all these and the interconnected world in the past two decades alone, are far from presumed that the world will become more and more interconnected. The only way to continue joining is thanks to the technology's growth and there is no slowdown. This can potentially lead to the creation of more global companies and the conduct of business at a global level. It is only in the changing world of globalization and technology that the accounting profession is changing. The change can be good and global accounting can be beneficial for a unified accounting system to work better and more effectively in the business of global trade and investment
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