Chapter 2 Accounting In The 21st Century PDF

CHAPTER 2 ACCOUNTING IN THE 21ST CENTURY Presented by Prof. Rey Topic Outline 1 CHANGES IN THE BUSINESS ENVIRONMENT 2 FIELDS OF ACCOUNTING PRACTICES 3 ACCOUNTING AREAS 4 PROFESSIONAL REGULATORY BODIES 5...

CHAPTER 2 ACCOUNTING IN THE 21ST CENTURY Presented by Prof. Rey Topic Outline 1 CHANGES IN THE BUSINESS ENVIRONMENT 2 FIELDS OF ACCOUNTING PRACTICES 3 ACCOUNTING AREAS 4 PROFESSIONAL REGULATORY BODIES 5 GOOD GOVERNANCE, SOCIAL ACCOUNTING AND ETHICS 6 CONCEPTUAL FRAMEWORK 7 QUALITATIVE CHARACTERISTICS OF FINANCIAL INFORMATION  3 MAJOR CHANGES IN THE BUSINESS ENVIRONMENT A. Global E-Commerce B. High Technology C. Trade Liberalization and Internationalization  DIGITAL SAFETY TIPS How does a business firm address the above changes? A. World Class Product and Services B. Mergers and Partnerships C.Sustainability A firm to survive must address three factors: 1.Profit Skill 2.People Skill 3.Planet Skill  DIGITAL SAFETY TIPS QUALITIES of a 21st Century Business Persons a. Effective Communication Skills b. Integrity c. Positive Attitude d. Competency e. Flexible and Adaptable f. Creative and Innovative g. Critical Mind h. Interpersonal Skills i. Intellectual Skills  FIELDS OF ACCOUNTING PRACTICES a. PUBLIC ACCOUNTING – is a career field open to firms and individual CPAs who offers to the public, for a fee, expert services like bookkeeping, auditing, accounting, tax and financial planning. i. Careers: Auditor, Tax Consultant, Management Consultant b. INDUSTRY ACCOUNTING (also called Private Accounting) – is another career field where more accountants are employed than in public accounting because of the huge number of merchandising, manufacturing or service firms. i. Careers: Financial Accountant, Controller, Budget Officer, Internal Auditor, Electronic Data Processing Head, or Cost Accountant c. GOVERNMENT AND NOT FOR PROFIT ACCOUNTING – is another field where one work in any of the government agencies, religious organizations, labor unions, colleges and universities, trade associations and many others. d. RESEARCH AND EDUCATION – is another professional field where the accountant assumes the role of researcher, teacher and reviewer.  DIGITAL SAFETY TIPS ACCOUNTING AREAS 1.Basic Accounting / Bookkeeping 2.Intermediate Accounting 3.Cost Accounting 4.Management Accounting 5.Auditing 6.Government and Non-Profit Organization 7.Tax Accounting 8.Forensic Accounting  DIGITAL SAFETY TIPS PROFESSIONAL REGULATORY BODIES: 1.PRC 2.BOA 3.PICPA 4.SEC 5.BSP 6.BIR  GOOD GOVERNANCE SOCIAL ACCOUNTING is the process of directing the ithe bottom line of SUCCESS in affairs of the firm with a view business should be the three P’s: of upholding standards and a. FINANCIAL PERFORMANCE – protecting the interest of all maximizing of owner’s wealth or stakeholders. Lack of self- PROFIT b. SOCIAL PERFORMANCE – control and to self-regulate promoting PEOPLE’s well being were perceived as lacking in c. ENVIRONMENTAL good governance. This led to PERFORMANCE – protecting the lose of trust and confidence by PLANET and preserving its natural investors and the public. resources  ETHICS 5 ETHICAL STANDARDS is a set of moral principles and 1. INTEGRITY values which guides one to distinguish between right and 2.OBJECTIVITY wrong and to conduct oneself 3.COMPETENCE accordingly. 4.INDEPENDENCE 5.CONFIDENTIALITY  CONCEPTUAL FRAMEWORK structure of theoretical principles, rules and procedures used as reference for financial reporting and for standard development