Question

Critically examine factors that influence contemporary accounting practices or standard setting in transition countries.
Factor is on Quality of education in Accounting
*1.5k words

Answer 1

ACCOUNTING

Accounting is the process of measuring the financial & non-financial informations about the economic entities and communicating such measured informations to the management. In simple terms accounting is the art of collecting,recording,classifying ,summarizing the numerical data and interpretation of their result.

FACTORS INFLUENCES THE ACCOUNTING PRACTICES DEVELOPMENT OF A COUNTRY

• TYPES OF BUSINESS ENTITIES
• INFLATION
• TYPES OF BUSINESS ENTITIES
• TYPE OF FINANCING SYSTEM
• LACK OF HIGH QUALITY ACCOUNTING EDUCATION
• POLITICAL SYSTEMS
• TAXATION
• STATUS OF ACCOUNTING PROFESSION
• FINANCIAL REPORTING SYSTEM
• LEGAL SYSTEMS

QUALITY OF EDUCATION IN ACCOUNTING

One of the main factor which influences the accounting practices in transition countries are quality of education in accounting. It is the field of accounting , which is referred to as a factor for the development and designing of accounting policies and practices. Although the quality education of accounting affects the accounting standards, there are certain factors which affect the quality of accounting education;such as:

• accounting information
• leadership style , which is one of the main process to achieve goals by inducing others to work enthusiastically.
• Trainning of employess. User trainning is one of the factor in quality education which helps the employees to improve works and skills of employees.
• quality of accounting information standards. etc.

The quality of accounting information is a vital element to make quality decisions in an organization. The accounting system should be effectively implemented for a sustainable development to the entity. The users of accounting needs informations that fits their needs. So such promises are made by the quality on accounting education. Lack of the same resulted as a constraining factor for accounting practice development. Bringing in accountants or financial experts from other countries will not be a best remedial measure for efficient accounting system, since the rules,regulations and other factors will be different for different countries. Advanced countries may not have the same accounting systems as followed by the less developed countries. Two main constraints for bringing professionals from advanced countries or sending accountants to adavanced countries are :

1. Advanced countries will have advanced accounting practices and huge business entities,also along with that there will be complex accounting problems.
2. In the case of under developed countries, business entities will be smaller and therefore the required level of education will be lower when compared to advanced countries. The qualification will also be lower when compared to advanced countries

This factor should be considered within the framework of factors relating to a country's level of economic and political development & strength of the accounting profession. Any improvements in the education system of accounting helps to improve the environmental factors and development of an accounting system also the development of country itself. Yet there are two factors , that have to be understood as a part of quality accounting education discussion:

1. Accounting professionals is less important in those states whose legal systems are code law based, and it will be state -regulated. &
2. In the common-law countries , the accounting professionals are highly needed and plays a major role in setting accounting and auditing standards of the country.