Question

4. How do you see the future of financial reporting evolving over the next 10 years? Specifically, discuss any significant new standards that you predict will be passed in the next ten years. Discuss at least two potential future standards and discuss why these standards are important for improving financial accounting information. (Include at least two reasons for each standard in your answer.)

Answer 1

1. Technological Standards:

i. Various companies started following various technological sources for their financial reporting and often ignoring the elements of competitive survival. Keeping an update with the technology keeps your information flexible so as to en sure proper coordination with the problems arising in the future.

ii. Cost-Benefit approach will be maintained by outweighing the cost of maintaining various personnel in the organization being in advancement of technology.

2. Increased regulation:

   i. This is because of bulky tax avoidance, money laundering and various kinds of reasons which also includes transfer pricing which was reported in Panama papers. With these regulations the accountants will have little scope for profit shifting etc,.

ii. With stakeholders, investors interest in the organization has been tremendously changed, the pressures for the Employees and various personnel have been put to work hard to gradually improve the output and increasing the credit worthiness of the organization in these years. Which is an added advantage for the coming decade.