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Source: Journal of Accountancy
- The profession is moving toward principles-based accounting and away from specific rules.
- FASB, GASB, and IASB will change. There may be a need for only one entity to set standards.
- Separate regulations for public and private companies may be necessary.
- There is a need for different financial reporting requirements for public and private companies. Private company stakeholders, such as banks and private investors, have closer relationships and better access to information than do public company investors.
- eXtensible Business Reporting Language (XBRL) will impact the profession. XBRL allows different systems to share financial data.
- Enhanced Business Reporting (EBR) provides a format for presenting non-financial data, such as key performance indicators, and facilitates integrating non-financial information with financial aspects of reports. (See www.ebrconsortium.org.)
- CPAs will develop new skills in the next 10 years. Greater specialization will be required because larger businesses will need different services than smaller businesses. CPAs will become more computer-literate as technology continues to change.
- The FBI expects 15 percent of new employees to have accounting or finance backgrounds. Evidence that formerly existed on paper is now typically on computer hard drives. Investigators need sophisticated technology skills.
- CPAs will become more important personal financial advisors as baby boomers liquidate their investments in businesses and retire. The AICPA’s 360 Degrees of Financial Literacy initiative encourages CPAs to bring financial education to schools, the military, the workplace, and communities of retirees.
From: Journal of Accountancy, October 2005. For the complete article, click on the following link: http://www.aicpa.org/pubs/jofa/oct2005/harring.htm.
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