RECENT DEVELOPMENTS IN ACCOUNTING PROFESSION
This assessment proposes to investigate the recent developments in accounting profession in Nigeria. With the Fourth Industrial Revolution, triggered by digital technologies, it is estimated that some professions will disappear completely, some will develop more, and new branches of professions that were never known will emerge. As a result, it is inevitable that these systems will influence accountancy profession. The challenges facing accounting profession are; human errors, lack of management Integrity, failure of new accounting rules and regulations to curb Accounting frauds, and traditional accounting roles unsuitable to new business models. Emerging issues such as globalization and adoption of International Financial Reporting Standards (IFRS), technological advancement and global code of conducts for accountants will be considered this present study. This study will therefore examine the impacts and challenges on professional accounting in Nigeria. It is expedient that professional accountants becomes more proactive in approach and ready to face challenges in the financial world while professional bodies must re-engineer all the necessary professional Code of Conduct to meet international standards.
Accounting plays a major role in the economic development of every country. A country’s accounting system is affected by a variety of historical, economic, socio-cultural, institutional, and other non-accounting factors. The American Accounting Association (AAA, 1986) states that the function of accounting is to provide qualitative information, primarily financial in nature, about economic entities that is intended to be useful in economic decisions. Therefore, professional accountants bear a major responsibility for the development and regulation of modern economies. In earlier times accounting was used only for book keeping. In this era, accounting has become basic necessity of business world even for small businesses and Non-Profit organizations and is equally important for public and private sector.
Recently, there have been some fundamental developments in the professional arena of accountancy practice. These developments are not only at local level but it has a global phenomenon. The global economic trend dictates the direction in which the practitioners should go, hence accountant of modern day should prepare for challenging world of practice. A study of the evolution of accounting suggests that accounting processes are reactive because they have developed primarily in response to business needs. Also, the development of accounting process has been related to economic progress and societal development of a country.
Accounting is an art, a method, a measurement methodology of communication system and, an information system designed to produce selected quantitative data in monetary terms about an entity engaged in economic activity (Ozoh, 2001). However, recent events and development in the accountancy practice coupled with the ever-changing environment in which the accountant operates have brought to light that, there is more to it than that. This is because there are lots of refinement and sophistication which the accountant has to contend with in the daily performance of his duties. It is an indisputable fact that change is the only constant variable in life. This statement is very true in relation to accounting profession. In recent times, one is seeing the focus of responsibilities of accountants shifting from recording the various aspects of a corporation’s financial wealth to joining top executives in a broad based partnership (Akhidime, 2013).