Abstract: The purpose of this report is to enlighten the public on Accounting Education Standards ( IAES), as well as an in-depth look at the impact of globalization has on IAES. This paper will discuss the collaboration of the international Federation of Accountants (IFAC) and the International Accounting Education Standards Board (IAESB) to regulate IAES.
It’s easy to observe that the involvement of International Financial Reporting Standards (IFRS) in most countries is great for economic growth, but it’s even more imperative for businesses that are internationally incorporated. Global business affects all corporations from little proprietorship’s too Big C-Corporations. Because every company is involved somehow with international business, IAES is not just a small part of accounting education but instead IAES is accounting education.
The Role of IAESB and IFAC
The IFAC has a network of over 2.5 million professional accountants around the world, in over 123 countries. Along with The IAESB, the IFAC works together in the globalization of accounting standards. IFAC mission is:
⦁ To grow the accountant profession while contributing to the development of the global economy, and serving the public interest.
⦁ Develop and advertise acceptance for high-quality professional standards
⦁ Expand on international convergence
⦁ Get involved in public issue when relevant to the profession
Accounting Education is rapidly changing with the development of the International Accounting Education Standards Board (IAESB). IAESB is an independent committee established to create standards for international accounting education. IAES serves a purpose of making sure every accountant, regardless of education background and demographic, has equivalent qualifications of professional accountants. The IAESB creates and promotes standards that are best suitable for society. According to the board’s January 2012 Terms of Reference (IFAC 2012), the IAESB’s objective is to serve the public interest by:
⦁ Publishing of high-quality standards that represent good practice in the education, growth, and evaluation of professional accountants;
⦁ Bring awareness to the acceptance and practice of the International Education Standards;
⦁ Creating an education reference point for assessing the utilization of the International Education Standards;
The standards are issued to help accounting education by, setting guidelines for operating and bookkeeping internationally, stating the appropriate knowledge, professional skills, and ethics required to be a global accountant. These standards also implant in accountants a tendency of continued learning that will allow for accountants to adopt easily to changes in universal standards. Furthermore, IAES promotes convergence and constant practice of international standards by setting forth a common base of education and useful experience for every professional.
There are challenges in the convergence of education standards because convergence of IAES unlike the convergence of Financial Reporting Standards is less talked about among educators. The IAESB supports fully the convergence of educational outcomes to achieve accountant competence, but there are many ways for an accountant to achieve practised competence without following the conventional path set by his country. Nevertheless, the support of academic outcomes does not translate to convergence in non-accustomed educational outlets such as professional programs. Around the world, there are thousands of distinct education systems that follow various curriculum and teaching styles. The competency of an accountant is measured using a traditional method; a method that evaluates the accountant education background, their related experience and examination. However, it’s still difficult to assess the best possible approach because each of the E’s- education, experience, and examination vary from country to country.
For example, the United States and the United Kingdom are closely correlated in culture and language but have an apparent difference in professional accounting education. In the U.S., higher education (Universities) is the main path for the accounting profession. Becoming a licensed CPA in the U.S. takes no practical experience. The IFAC role of the universities is minimal, and they do not determine the university’s curriculum, or if they’re accounting, program is even acceptable.
In contrast to the U.S., the U.K depends more on practised programs for accounting education. Ambitious accountants complete their studies through the qualified institutes by gaining three years of experience working for an employer. Most of the accountants in the U.K did not graduate college with an accounting degree, and some did not obtain any kind of degree. Despite the differences in education, convergence may still happen by finding common ground. Educators, whether it be professors at universities, or professionals should advocate a process to develop the necessary competence needed to advance the global economy and society.
Its apparent that globalization has a massive effect on accounting education. International Education Standards that are developed by the International Accounting Education Standards Board (IAESB) are the main influences in accounting training worldwide. Professionals are now pressured to be teachers; while professors and students are demanded to understand the universal rules.