Accounting and Globalization Essay - 3470 Words

INTRODUCTION As todays companies become more globally oriented and expand into multinational corporations, there is a growing need to compress financial regulations into a homogeneous unit. To achieve this homogeneity, accounting practices in the modern economic market must strive for a symbiotic relationship with globalization. Because consumer capitalism has spread to non-originating countries, and non-Americanized cultures, the practices of accounting and financial management must standardize their policies. Thus, accounting must be regarded beyond capital market settings, and the different effects that accounting has had in such sites must be examined. WHY ACCOUNTING IS CHANGING GLOBALIZATION Since leading companies have†¦show more content†¦softwood lumber dispute (Graham Neu, 2003). At the center of this dispute is the method of calculating producer costsÂâ€"a concern of both managerial and financial accounting (Graham Neu, 2003). Because of the centrality of the notion of cost within trade-resolution procedures, accounting operates on an embedded technology to arbitrate and allocate the materials of such disputes (Bottom Simons, 1990, as cited in Graham Neu, 2003). It is further interesting to note that accounting has a forward and downward trickling motion in such episodes (Graham Neu, 2003). Accounting trickles forward in that it structures and constrains subsequent government policy-making procedures in other arenas, also acting as a precedent for other countries, in the scope of the World Trade Organization (WTO) dispute resolution mechanisms (Graham Neu, 2003). As accounting trickles downward, it impacts the producers and employers that manuf acture products, as well as the consumers who purchase such products (Graham Neu, 2003). By this type of financial arbitration, accounting is implicated internationally in both the regulation of product flows and the standardized costing practices. FLOWS OF INFORMATION How accounting regulates and structures the flow of information is rather vague. Information transfer, more visible on the Internet, is relatively unstructured and unregulated in current accounting practices (Graham Neu, 2003). However,Show MoreRelatedAccounting Career Goals Essay1552 Words   |  7 Pagesability to follow directions. My weaknesses are communication skill, lack of U.S culture and working experience. Increasing job demand, globalization and accountant role expanding are three major opportunities in accounting field. Information technology, uncertainty of recession and starting salary are 3 major threats to my financial success. I will face all the accounting major competitors from the Midwest. My goal is the final destination of my financial success. It is to be able to pay bills withoutRead MoreAccountant Role In Business Essay1742 Words   |  7 Pagesnew challenges and competition companies face. 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