Answer 1 A



Answer 1 A

Contemporary Issues Faced By the Modern Accountant

As with Advancement in technology and globalization both has affected the nature and ways of doing business which ultimately impacted the accountants as they are the one who keeps the business records and provide information to the owners about how well the business is going. The modernization had bring changes in accountancy profession which requires accountant to be familiar with technology and advancements in business process .The Accountants has to face various issues such as the computerization of accounting process which make them to become familiar with I.T process and procedures because now the bookkeeping and maintenance of accounting records is done by the Computerized packages. The globalization involved economies of scales which means bulk production, bulk purchasing all of this has significantly increased the volumes of transactions which in turn has increased the amount of data to be managed and reports to be generated .Other issues that accountants today has to face is the management accounting issues which makes them to calculate costs. Which is one of the most difficult aspect because due to complexity in manufacturing process the cost calculation has become one of the challenging task because it requires to calculate the cost of various inputs , incorporates wastages and to calculate the final cost of the product. Intense competition requires efficient pricing for which accurate cost allocation is very important. All of these issues are faced by the accountant and to address them different certifications and accountancy qualifications has been established which now includes subjects such as IT, Performance Management; Costing so that now Modern Accountants would have the knowledge of what is required of them.

One of the Popular Car manufacturer in Japan (Toyota) has used the Just in time concept which made them to face a lot of issues and challenges and required a full change in their manufacturing process .Just In Time not only requires a change in manufacturing process but it also involves a huge amendment in the whole performance reporting system as well as the concept of inventory holding is minimized a lot which involves changes in accounting practices. Just in time involves the whole company to perform at their maximum efficiency level that involves the adoption of a performance management system that could cover all the dimensions and functions to facilitate just in time production. Change in Performance reporting system will also have an impact to the information that will be reported to shareholders it means that the financial reporting systems will be changed accordingly and financial reporting will be made more transparent. The Extensive Performance Reporting leading to transparency in information to shareholders will make it possible for shareholders to make more informed decisions that will lead to maximization of their wealth.

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