Impact Of Globalization On Accountancy Practices

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Globalization might influence in economic and political aspects. Moreover, globalization of business has closed connection with accountancy practices in many viewpoints. In particularly, the effect of globalization of business on accountancy practices presents both great opportunities and significant challenges. However, the greatest challenges are time, distance and comparability of financial report which influences the role of accounting practices. Additionally, accountancy practices have modified by globalization of business, because accountants are required to work cooperatively with colleagues those who work in foreign firms. Therefore, the great differences of time and distance which is barriers for accountancy practices in many countries over the world. These obstacles happen in communication for exchanging information of contracts between companies. As a result, accountants should access and deal with the development of new information technology and communication technologies in order to reduce the distance aspects and improve the problem of time differences between countries (Oliver, 2010, p. 603) when working in the financial contracts over national borders. Globalization has impacted business in many aspects …show more content…

The significant effects are time, distance and comparability of financial statement. The financial statements or the capital markets over national frontiers might be changed by time and distance aspects. Therefore, accountancy practices should be applied the development of new information technology for dealing with the distance aspects and improving the problem in different of time when working over national frontiers. Moreover, the methods in accountancy practices have changed from traditional approach to the active method. Furthermore, the globalisation of accounting standards is established as a common accounting language that is effective across national

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