Accounting

Accounting is big business in Costa Rica, a country in Central America which is about the size of West Virginia (Faddis, 2006). This is due in part to the tremendous influx of America’s baby boomers choosing to live and retire in Costa Rica for the country’s mild weather and its reasonable cost of living. In Costa Rica, there are over 10,000 Accountants. Every Accountant who practices in Costa Rica is required by law to be certified through the Costa Rican Board of Accountants. The Costa Rican Board of Accountants must authorize each of the 10,000 plus Accountants. Public Law 1269 states that each Account must be authorized by the Board to legally exercise the professional accounting practice in Costa Rica (Zamora, 2005).

The government itself openly discourages people from utilizing the “$20 a month” Accountants who handle numerous clients. Because many individuals seek Accounting services in Costa Rica, professionals and “not so” professionals try to attract the customer’s attention. Many new customers for these accountants are coming from the U.S. Because of its lower cost of living and onslaught of baby boomer retirees, many Americans and their money are moving to Costa Rica and taking advantage of these accountants. This is causing the country to have an increase need in financial consultants and accountants for their new residents.

It is quite common on Costa Rican websites to find warnings of those in various professional fields that aren’t so professional. Because accounting is big business in Costa Rica, accounting scammers are too. This is why the Costa Rican government warns people to check the “Accountant’s” certification and professional status. The following is just one of the common cautions I found on one Costa Rican site: “CPA’s here are of course accountants, but no need to spend years in public accounting before they became CPA’s. Here you want someone who is careful, knows the tax laws and how they affect you, and has experience” (Professionals, 2007).

Costa Rica is even impressing U.S. businesses with its accounting practices. Because Intel Corporation, a U.S. company, was impressed by the quality of accounting services demonstrated in Costa Rica; they have since located their new financial services center in Costa Rica. The following was reported in Itnews.com:

Intel, which already operates a major facility in Costa Rica, said it will fill 100 new accounting professional positions for a new financial services center it will open next year. In an email this week, an Intel spokesman said the operation would provide financial services for the corporation while overall accounting control and policy management would remain in the US (Gardner, 2005).

The Costa Rican Investment Promotion Agency (CINDE) attributes Intel’s move and that of other companies to Costa Rican’s new literacy rate, their improved education system along with their high tech infrastructure as why many companies are choosing Costa Rica to move their businesses to (Gardner, 2005). There are many other companies and countries who outsource their accounting needs to Costa Rica. Many individuals aren’t aware of this because the companies physically stay put while conducting their accounting business with Costa Rica through the Internet.

Costa Rica has been a forerunner in other areas pertaining to accounting also. In 2002, Costa Rica offered an international Pilot Project presentation on “Environmental Management Accounting” which was geared toward better understanding and supporting the financial decision-making processes that are influenced by environmental factors (Feoli et al., 2003).

Managers that participated in this Environmental Management Accounting program were impressed with the studies used in combining managerial accounting with environmental management in that the results were “very relevant to their decision making process since they had not previously accounted the impact of environmental management in their cost structure” (Feoli et al., 2003).

Overall, management of the companies stated that they had no idea of their environmental costs and that this Environment Management Accounting Pilot Project hosted and developed by the country of Costa Rica helped “identify operational potential factors in reducing their environmental costs” (Feoli et al., 2003).

     The U.S. Government advises the traveler visiting Costa Rica be up-to-date on their immunizations including those for typhoid, Hepatitis A and B, tetanus-diptheria and measles (Tips, 2007). It’s also important for business travelers to pack insect repellant with Deet when coming to Costa Rica. Other useful tips would include that the traveler leave their passport number and a detailed itinerary with a friend or relative in the U.S. The U.S. Department of State advises that the traveler bring travelers checks, not cash when coming to Costa Rica (Tips, 2007).

Some interesting information about Costa Rica, according to NASA Research, the climate in Costa Rica is considered to be the healthiest climate in the world (Faddis, 2006). December through April is their dry season whereas their rainy season lasts from May to November. Because Costa Rica still has many secondary roads, often transportation can be challenging to those who live there and some tourists who often aren’t aware of this. Four-wheel drive vehicles are strongly recommended for those who have to or choose to drive on Costa Rica’s secondary roads during the rainy season.

Costa Rica has some of the best places to ride motorcycles. People come from all over the globe to ride motorcycles in Costa Rica (Faddis, 2006). Costa Rica is considered to have some of the most varied riding areas in the world.

     Costa Rican is considered by some to be a food lovers paradise because of their fusion of cuisine. The culinary traditions represented in this area combines elements from Africa, Italy, France, China and Spain. Costa Rican’s food is generally mild to lightly seasoned flavored by grains, roots, spices, oils, sauces along with fresh fruit and vegetables (Business, 2006). Tap water in most areas of Costa Rica is considered safe to drink, however, it is generally recommended that one bring bottled water when traveling to any remote areas in Costa Rica (Faddis, 2006).

Not too surprising I would guess, catering to business travelers and international visitors is more expensive than catering to Costa Ricans (Business, 2006). So if an American were to live or retire to Costa Rica, their daily expenses would be less than what you would be paying as a tourist or as a business traveler in Costa Rica.

Women have made great strides in Costa Rican politics. There were a series of laws passed in Costa Rica to make sure women were represented in political offices and it worked! By the year 2002, the percentage of female legislators in office was unmatched by any other democratically elected national legislature in the world (Professionals, 2007). Costa Rica was the first country in the world to constitutionally abolish its army.

References

(2006). Business travel information. Retrieved June 17, 2007, from costarica.com Web

     site: http://www.costarica.com/Home/Business/Business_Travel_Information

Gardner, D (2007). “Costa Rica scores high tech operations.” Retrieved June 19, 2007,

     from itnews Web site: http://www.itnews.com.au/newsstory.aspx?CIaNID=18756

Faddis, R (2006, December 14). About Costa Rica. Retrieved June 20, 2007, from Costa

     Rica Web site: http://www.mototourscostarica.com/costa_rica_facts.php

Feoli, M. Jasch, C., Cordoba, A., Danse, M. (2003). “Environment management

     accounting pilot project in Costa Rica.” Retrieved June 16, 2007, from Environment

     Management Case Studies Web site:

     http://gin.confex.com/gin/2003/techprogram/P140.HTM

(2007, May 16). “The Professionals in Costa Rica.” Retrieved June 19, 2007, from The

     Real Costa Rica Web site:   http://www.therealcostarica.com/living_in_costa_rica/professional_services.html

(2007). Tips for travelers to Central and South America. Retrieved June 18, 2007, from

     U.S. Department of State Web site:

     http://travel.state.gov/travel/tips/regional/regional_1172.html

Zamora, R (2005). “Accounting Services in Costa Rica.” Retrieved June 19, 2007, from

     1costaricalink Web site: http://www.1costaricalink.com/business/accounting.htm

They should analyze the relationship of academic performance of BAS students in their true accounting profession. There is a strong positive relationship between these two variables. Since there is a positive correlation, it reveals that there should be written policies that state the benchmark of required grades for accounting subjects in order to maintain a possible high rate of passers. Standardized Table of Specification (TOSS) is also recommended in order to give weight on a more important topic of the program.

The school is given the privilege to require standard admission requirements to the program as reflected in its manual of regulations for students (SHED, 2007). In the united States and some other countries in the west, to become a Certified public Accountant (CPA) in a specific state, you must not only finish a bachelor’s degree. You must also present some requirements that will qualify you as an applicant. In order to be qualified, there is an aptitude test that you should pass. The said test will measure not only the cognitive but also the affective side of the person taking it.

In the Philippines, being a Certified Public Accountant (CPA) is as hard to get as in other countries. For example, in the Far Eastern university (FIJI), Students wishing to pursue a degree in accountancy leading to the CPA examination shall be enrolled initially in BASS-Major in Internal Auditing. After completing the course requirements for the first four years of study, the student shall be granted the degree of Bachelor of Science in Business Administration-Major in Internal Auditing.

Qualified students will be eligible to proceed to a fifth year of study, after which they will be granted the degree of Bachelor of Science in Accountancy which will qualify them for the CPA examination. At the end of the five-year program, the successful student shall have earned two separate degrees (BASS-IA and BAS). To simplify the situation, you have to study and finish a related course first before pursuing the degree in accountancy. There is a different scenario in other universities. There is a retention program that mandates every student to have an examination conducted yearly and pass it in order to continue studying Accountancy.

If they failed to do so, they are required to shift to another business related courses. To name a few, University of the Philippines (UP), De La Sale University (DULLS), and Polytechnic University of the Philippines (PUP) are some of the universities that regulate this program. In this instance, they should study accountancy first and if they fail, they will have no option but to pursue another business related course to continue their studies. This means a different pathway to a quite different career. In Our Lady of Fatima University (LOFT), the same retention program applies.

Freshmen students, after their second semester, will take a qualifying exam and pass it for them to continue studying as a sophomore accounting student in the next school year. Sophomore students, during summer vacation, will also take a qualifying exam in order to be a junior accounting student of the university. If the students failed to pass the exam, they have no choice but to shift to another program related to BAS which they like or continue the study in accounting with the degree Of Bachelor of Science in Accounting Technology (BASS), a non-board program.

The study aims to know the goal of the retention program implemented in ELF] for their BAS students and if it is a necessary venture for them to take it. Statement of the Problem As accountancy students themselves, the researchers want to study and investigate the advantages and disadvantages of taking the qualifying exam of students taking up Accountancy. The researchers also want to find out the learning that the students will gain from taking the qualifying exam and if these help them to enhance their knowledge and skills in accountancy.

The study also wants to express the feelings of both parties (the students and the university) on why the university should implement this kind of retention program and observe the effects of the implementation of the retention program in producing professionals of the country. The questions can be summarized as follows: 1 . What is the passing rate of accountancy students in qualifying exam in accountancy? 2. What are the struggles/difficulties met by test takers? 3. What are the benefits of the qualifying exam for accountancy students? 4. What will be the effect of this to the public? 5.

How will the finding may be utilized? Sass motion/Hypothesis 1 . The passing rate of accountancy student in the qualifying exam in accountancy should be more than 50% 2. The students will face more challenges, pressure and stress before taking the test such as long time of reviewing, deprivation of their sleep, and the expectation of their parents to them. Time pressure is also one of the obstacles that should have to be overcome by the examinees during the examination. 3. The lessons that they will learn in the qualifying exam is of great help to them when they already finish the degree in accountancy.

The exam will hone their potentials that they already have and use it to the career that they have chosen, and that is to be a professional accountant. 4. The qualifying exam will produce better accountant and will help in the progress of the country because they have professionals who have excellent background and expertise on the field they have chosen. 5. The findings can be a source of information in finding the season of the implementation of the said retention program. Significance of the study Accounting Department. This study would be able to give assistance to everyone in the Accounting Industry.

It will be a great source of information regarding the continuous improvement of programs for the higher rate of qualified accountants. Sophomore Students of College of Business and Accountancy. The researcher will be able to assist the students who will take the qualifying exam about the proper preparations, the do’s and don’t, and other tips that will be their advantage in taking the exams. Teachers and Professors of the Program. Knowledge of this study will guide professors and other instructors in the improvement of the curriculum for the betterment of their teaching strategies that will benefit both the students and themselves as well.

Future Researchers. The study would be able to give aid, support, guidance and advice to the future researchers who will also study similar issues. Some of its part could have a resemblance in their study so it would be a great comfort for them to know the facts regarding the problems alike. Scope and Delimitation This study was conducted to determine the advantages and disadvantages of taking the qualifying exam in Accountancy. The retention program implemented by the university has been advised as a basis of the learning of the students and if they are capable of taking Accountancy.

This study will discover the knowledge the students will acquire in taking the qualifying exam and how it will help them improve their knowledge and skills in Accountancy. This study would be most relevant to the third year students of Our Lady of Fatima University (LOFT-Antipodal Campus) taking up the degree program of Accountancy. However, this study will not cover other branches of Our Lady of Fatima University due to time and financial constraints. It was not possible to cover a argue number of respondents because getting them required more resources, considerable time and other logistics.

Materials and Methods The Researchers aim to discuss the advantages and disadvantages Of students taking the qualifying examination in Accountancy which today’s concerned of accountancy students who wants to graduate as accountants however they required to pass the qualifying examination first. The information related to the topic is gathered in different references such as books, research papers, online sources and survey questionnaire. The Researcher chose selected third year Accountancy students of Our Lady f Fatima University as their respondents.

The particular student will answer the provided survey forms that indicated information on what are their views (advantages and disadvantages) on taking the qualifying examination. The data will be analyzed through the use of a table that serves as the summary of the response or the answer of the respondents who took the survey question. In addition, the Researcher will also ask some faculty of College of Business and Accountancy about their opinions in the advantages and disadvantages of taking the qualifying examination for the students. Definition of terms Accountancy.

“FRS 5 addresses the problem of what is commonly referred to as ‘off Balance sheet financing’. One of the main aims of such arrangements is to finance a company’s assets and operations in such a way that the finance is not shown as a liability in the company’s balance sheet.”   A further effect is that the assets being financed are excluded from the accounts, with the result that both the resources of the entity and its financing are understated.

Example: One long contract can be broken down into two or more transactions that can give rise to points at which income (irrespective of billing arrangements) should be recognized. It is important that each of these stages can be adequately valued. The amount of income to be recognized should be in line with performance of the contract (and does not have to fall in line with bills rendered or payments received).

Depending on the nature of the contract, it does mean that it is not essential that all contractual obligations need to be fulfilled to enable some income to be recognized.  “FRS 5 requires that the substance of an entity’s transactions is reported in its financial statements. This requires that the commercial effect of a transaction and any resulting assets, liabilities, gains and losses are Shown and that the accounts do not merely report the legal form of a transaction.” 

For example, a company may sell (i.e. transfer legal title to) an asset and Enter into a concurrent agreement to repurchase the asset at the sales Price plus interest. The asset may remain on the premises of the ‘seller’ and continue to be used in its business. In such a case, the company Continues to enjoy the economic benefit of the asset and to be exposed to the principal risks inherent in those benefits. “FRS 5 requires that the asset Continues to be reported as an asset of the seller, notwithstanding the transfer of legal title, and that a liability is recognized for the ‘seller’s’ obligation to repay the sales price plus interest.”

To aid its application, FRS 5 contains seven application notes that show how its requirements apply to transactions with certain features. These Are:

• Consignment stock
• Sale and repurchase agreements
• Factoring of debts
• Securities assets
• Loan transfers

“Private Finance Initiative and similar contracts (September 1998) Revenue recognition (November 2003, however, FRS 5 has general application and is not limited to the transactions covered in the application notes.”  FRS 5 is effective for accounting periods ending on or after 22 September 1994. (Application Note F is effective from 10 September 1998. Application Note G is effective from 23 December 2003.)

In April 2005 the ASB issued an exposure draft of amendments to FRS 26 ‘Financial Instruments: Measurement’ proposing implementation of the Recognition and derecognition parts of IAS 39 ‘Financial

Instruments: Recognition and Measurement’.  If implemented, these proposals would Amend FRS 5 to exclude from its scope transactions in financial assets that would then fall within the scope of FRS 26.

“The Accounting Standards Board’s new FRS 5 Application Note G Revenue Recognition” has been causing some consternation not least Amongst professional practices, as a result of recent press articles and Comment.  The main concern is that accountancy practices and other Professional firms will face additional tax liabilities as a result of having to include partners’ time in WIP and value all their WIP at selling price.”

“The new FRS 5 Application Note applies for accounting periods ending on or after 23 December 2003.  The purpose of this note is to provide information to members on the current state of the debate on this subject.  The above concerns possibly arise from some overly simplistic Interpretations of the requirements of the Application Note.” To date, Practising firms have valued ongoing work in progress at the lower of cost and net realisable value, in accordance with SSAP 9, until that WIP is invoiced.  Our initial interpretation of the new requirements is as follows.

Work in Progress:

“FRS 5 paragraph 13 states that the FRS (and therefore its Application Notes), does not apply where there is a more Specific standard dealing with the subject.”   “…therefore, for the recognition And valuation of WIP, SSAP 9 should be followed, with WIP, other than Long term WIP, valued at the lower of cost and net realisable value. “

Revenue:

Revenue should now be recognised as required by “Application Note G.  Paragraph G4 of the Application Note states that a Seller recognises revenue when, and to the extent that, it obtains the right to consideration in exchange for itsperformance. Paragraph G6 clarifies. That the right to consideration may occur when some, but not all of the contractual obligations have been fulfilled.”Revenue should be measured at the fair value of the right to consideration. In each engagement, the question needs to be asked: at what stage does the firm obtain a right to consideration for the work done?

“It is likely that Different types of business may give rise to different patterns as to when the right to consideration arises, and the terms of business (as set out in Engagement letters) with clients will need to be checked carefully For example, in an audit engagement, it may be the case that a right to Receive some or all of the audit fee would not arise until the engagement had been completed and an audit report issued.

Whereas, in a consulting Assignment with discrete stages, a right to consideration might arise at each stage.   Where a right to consideration is established, the amount Due would be recognised as revenue and in debtors, with the Corresponding costs removed from WIP.  “If one is to place one’s faith in self-regulation, the structure and process for setting financial reporting standards constitute the paradigm.”

Many practices request interi payments from clients as work Progresses.  This does not necessarily imply that a right to consideration has been obtained, and amounts received in advance of obtaining that Right would need to be shown within creditors as payments received in advance. The issue of whether partner’s time should be Included in WIP was addressed in the SORP on Limited Liability Partnerships (LLPs).  This required that “cost” included the Cost of employee and partner time and relevant overheads, but not the Partners’ profit share.

This would be persuasive in justifying the exclusion of partners’ profit from WIP in other partnerships. The classification, presentation and disclosure requirements in FRS 5 apply to all non- current assets that are held for resale. However, as “held for resale” is a closely defined term, in practice only those financial assets FRS will affect which it may take a period of time to find a buyer 5 do requirements at any given balance sheet date, unless they are part of A group of assets and abilities it be disposed of together in a single Transaction.

FRS 5 also contains classification, presentation and disclosure Requirements for discontinued operations that supersedes FRS 135. These relate to the presentation and disclosure in the income statement and Cash flow statement and the timing of when an operation is classified as Discontinued.

1. b) The ICAS report Principles not Rules: A Question of Judgment cited.

FRS 5 as an example of successful judgement-based accounting

“In Britain the qualification function is very pronounced among the various professional accountancy associations.”[11]  Accounting standards should be firmly governed by high-level principles. FRS 5 Reporting the substance of transactions has shown that judgment-based accounting can operate successfully to report economic Reality in a situation where previously there had been over-reliance on Rules governing legal form.  Those applying the rule may feel that they have a precise answer but there is no guarantee that precision means fair presentation. Comfort is drawn from mechanistic application of the detail rather than standing back to make a professional judgment on the overall picture.

Authority and enforcement are qualities of regulators, not of the words in the rules. A regulator can be equally, or more, challenging of judgment in requiring justification. Regulators must have the capacity to understand and question the judgment on the basis of stated principles, rather than seeking refuge in rules designed to ease operation of the regulatory Process.

“Faced with widely publicized financial scandals and criticisms of financial reporting similar to those heard in the United States, the research committee of the Institute of Chartered Accountants of Scotland (rcICAS) set out in 1987 to find an alternative to historical cost accounting.”[12]

Financial statement should be capable of comparison when the economic

Reality of similar transactions and events are understood in a similar way by the users if those financial statements. The disclosure by the preparer of judgments made is key to that understanding.

“An analogous but not identical dichotomy as ‘rules vs. processes’ in prudential regulation can be found in the conduct of business field. This can be referred to as ‘rules vs. principles’. Both pairs of concepts share the basic feature that they contrast formal and detailed requirements (i.e. ‘rules’) with regulations, which allow, and indeed require, substantial involvement of individual firms and ample flexibility as regards the compliance with the set requirements (i.e. ‘processes’ or ‘principles’).”[13]

Rules based standards cause complexity and delay in keeping abreast of Change. The complexity of rule-based standard is only a consequence of the complexity of the underlying business.

Rule based standard deter creative accounting. Rule based standards

Foster creative accounting by diverting judgment from economic reality to the detail of application. Creative accounting under rule based regimes to make it unnecessary to quote specific cases.  Rule based standards set out greater detail, which is especially important where translation is needed.

There is a need for considerable technical guidance in countries where Principles based standards are a new idea and there has been a custom of relying on statutory regulation and strong governmental guidance.

A principles-based approach to standard setting is not only desirable but Essential, to serve the needs of business and the public interest and that the global convergence of accounting standards cannot be achieved by a Detailed rules-driven approach.

The working group believes that Principles-based standard setting will require: a change in the global Profession, with preparers and auditors assuming more responsibility for their judgments; the documentation of key judgments in the financial Statements; and regulators are accepting a range of judgment-based Outcomes.  The working group believes that rules-based accounting adds unnecessary complexity, encourages financial engineering and does not necessarily lead to a ‘true and fair view’ or ‘fair presentation’.

“On March 5th 2004 the Financial Reporting Committee (FRC) issued a working draft of guidance on FRS 5 and the valuation of work in progress, which has the title of ‘Application of FRS 5 Application Note G : ‘Revenue Recognition’ to contracts for professional services’ in the draft. The consultation period ended on Monday 15 March, in time for a meeting of the FRC later that day.  The article Practical application guidance of FRS 5 Application note G and UITF 40 to law firms, which was originally published in the July 2005 edition of Solicitors Group News, has been made available in full text on the Technical Policy website.  “

The whole emphasis of this subject is to ensure that income is recognized at an appropriate time. Most professionals know that the timing of billing can easily be manipulated so that accounts can give a distorted view. This guidance is attempting to give some clarity as to how income should be recognized. The guidance does contrast between contracts that last for more than twelve months and those under twelve months, but in practice their treatment is similar where the contract ps the year-end.

Faced with widely publicized financial scandals and criticisms of financial reporting similar to those heard in the United States, (The year 2002 witnessed major upheaval in the United States with the Enron and the WorldCom scandals. Throughout the United States there was major concern in corporate and financial sectors during the early years of the 1990’s as to the value of business information and the confidence people had in this information), the research committee of the rcICAS set out in 1987 to find an alternative to historical cost accounting. The findings should be of considerable interest to U.S. practitioners facing identical issues.

The ICAS research committee set out a blueprint for future reporting practices of linked companies (quoted enterprises) focusing on original empirical research work into current practices of users of business information including institutional investors, broker analysts and bank leaders. Their findings identified that: ‘the analysis of the decision making process identified for attention the cycle of communication, the importance of maintaining confidence, the ability of expert users to explore and sift data, their selective use of key measures and the importance they attach to information about change’.

The ICAS is one of the seven delegated professional associations. This prestigious position resonates with most Government policy-makers and permitted an awkward resolution of the dilemma it faced through its adherence to contradictory principles of monopoly and competition. The resulting polymorphous model of professionalization represented a complex solution to these conflicting interests and ideological crosscurrents.

The Government’s polymorphous model sought to preserve diversity, and defend itself against accusations of creating a “closed shop,” within a common framework. The Insolvency Act created the new profession of insolvency practice. All the normal functions of professional associations–admissions, examinations, code of ethics, discipline, continuing education.

ICAS has an established reputation for producing accountants of the highest calibre who are able to find employment throughout the world. These six associations also endow their individual members with high levels of professional status which is normally reflected in both their salaries and career prospects.

The secondary register is constituted by organisations which have impressive names including the Association of International Accountants; the Society of Company and Commercial Accountants; the Association of Authorised Public Accountants and the Association of Cost and Executive Accountants. All offer a qualification of some description and in the past have proved particularly popular with foreign students. Although these qualifications have never been recognised by the international accounting community the existence and persistence of such organisations illustrates the importance of a qualification within the profession.

These second register bodies should not be confused with several other bodies including the Association of Accounting Technicians (AAT), the Institute of Internal Auditors (IIA) and the Institute of Company Secretaries and Administrators (ICS A), each of which offers a qualification of recognised value.

With ICAS, there is a historically grounded frame of disciplinarity within which there are a limited but variable number of ways in which attainment may be understood and pursued in the accountancy field. In particular, its observed that a significant move towards wishing to be more transdisciplinary, but with a desire to retain all the benefits of being specialist at the same time.

This is, therefore, a particularly interesting moment in which to be proposing new approaches to attainment, i.e. FRA 5. There is, in our view, a considerable openness to radical forms of change. At the same time, to achieve such change is likely to need particular attention being paid to the issues of context, power and perspective, given the new way that disciplinarity is potentially to be enacted.

Reference(s)

1. Paul Einzig, 1962, The History of Foreign Exchange. Publisher: St.
2. Martin’s Press. Place of Publication: New York. Page Number: 248.
3. Institute of Chartered Accountants of Scotland Press Office www.icas.org.uk/site/cms/v4_newsArticleView.asp?article=4844. Accessed 16, November, 2006
4. International Accounting Standards Board
5. www.iasplus.com/europe/0603icasreport.pdf. Accessed 16, November, 2006
6. Institute of Chartered Accountants of Scotland Press Office www.directory.icas.org.uk/site/cms/contentChapterView.asp?chapter=2 Accessed 16, November, 2006
7. Financial Reporting Council
8. www.frc.org.uk/asb/technical/standards/pub0100.html – 23k. Accessed 16, November, 2006
9. Association of Chartered Certified Accountants www.accaglobal.com/publications/studentaccountant/30820 – 46k. Accessed 16, November, 2006
10. Fidelis Oditah, 1996 The Future for the Global Securities Market:
11. Legal and Regulatory Aspects Publisher: Oxford University. Place of Publication: Oxford. Page Number:90
12. Robert Van Riper, 1994, Setting Standards for Financial Reporting:
13. FASB and the Struggle for Control of a Critical Process. Publisher: Quorum Books. Place of Publication: Westport, CT. Page Number: 14.
14. Robin Roslender, 1992, Sociological Perspectives on Modern
15. Accountancy. Publisher: Routledge. Place of Publication: New York. Page Number: 27
16. Tom Lee, 1994, Mark to Market: The U.K. Experience. Journal Title:
17. Journal of Accountancy. Volume: 178. Issue: 3. Page Number: 84+
18. Tommaso Padoa-Schioppa, 2004, Regulating Finance: Balancing Freedom
19. and Risk. Publisher: Oxford University Press. Place of Publication: Oxford. Page Number: 47.
20. http://www.icaew.co.uk/index.cfm?route=111346 The Institute of Chartered Accountants in England & Wales
21. Paul Einzig, 1962, The History of Foreign Exchange. Contributors: – author. Publisher: St. Martin’s  Press. Place of Publication: New York. Page Number: 248.
22.  http://www.icas.org.uk/site/cms/v4_newsArticleView.asp?article=4844
23.  http://www.iasplus.com/europe/0603icasreport.pdf
24.  http://www.directory.icas.org.uk/site/cms/contentChapterView.asp?chapter=2
25. www.frc.org.uk/asb/technical/standards/pub0100.html – 23k
26. www.accaglobal.com/publications/studentaccountant/30820 – 46k
27. www.accaglobal.com/publications/studentaccountant/30820 – 46k
28. www.accaglobal.com/publications/studentaccountant/30820 – 46k
29.  Fidelis Oditah, 1996 The Future for the Global Securities Market: Legal and Regulatory Aspects Publisher: Oxford University. Place of Publication: Oxford. Page Number:90
30.  Robert Van Riper, 1994, Setting Standards for Financial Reporting: FASB and the Struggle for Control of a Critical Process. Publisher: Quorum Books. Place of Publication: Westport, CT. Page Number: 14.
31.  Robin Roslender, 1992, Sociological Perspectives on Modern Accountancy. Publisher: Routledge. Place of Publication: New York. Page Number: 27
32. Tom Lee,  1994, Mark to Market: The U.K. Experience. Contributors: – author. Journal Title: Journal of Accountancy. Volume: 178. Issue: 3. Publication Year:. Page Number: 84+.
33. Tommaso Padoa-Schioppa, 2004, Regulating Finance: Balancing Freedom and Risk. Publisher: Oxford University Press. Place of Publication: Oxford. Page Number: 47.
34. http://www.icaew.co.uk/index.cfm?route=111346 The Institute of Chartered Accountants in England ; Wales

Career Overview

Accountants carry the primary responsibility for bookkeeping services such as payroll, bank reconciliations, general ledger posting, along with managing financial statement compilations and oversee efficient use of funds and related tasks. Correspondingly, they provide some Human Resource functions such as Employee Handbook compilation, and benefits management. Another responsibility of accountant’s is taxes: personal, corporate, estate, payroll, sales tax, and business property taxes.

Educational Requirements

For entry-level positions in Accounting, employers usually require a minimum of an Associate Degree in Accounting. Many larger businesses or corporations require applicants to have graduated from a Bachelor’s or Master’s Degree program in Accounting or Taxation (Board of Regents of the University of Wisconsin System, 2012). There is NO requirement for Accountants to get certified as a Certified Public Accountant CPA or a Certified Management Accountant CMA, but if they do they usually get an increase in pay and more responsibilities.

There are certain skills Accountants need to make their day run smooth; all of these skills aren’t necessarily taught. For example, Accountants need analytical skills to analyze certain discrepancies on a balance sheet or income statements. Most Accountants are detail oriented, and also have the ability to compile a lot of information and then interpret the meaning. Most of the work will be performed on a computer so Accountants need computer and software skills.

Obviously, good math skills are another skill that an Accountant will have to utilize daily. Furthermore, Accountants will need excellent communication skills both verbal and written, and one can never forget lots of patience (Richardson, 2009).

Career Path

The typical career path for accountants goes as follows bookkeeper, Accountant, CPA and CMA (if one chooses to go that far). Like I have stated before, if one wants to go into Accounting, they do not need their CPA or CMA, Accounting Firms are more than happy to hire Accountants with just a four year degree in Accounting. If one chooses, Accounting has two opportunities for advancement which received CPA or CMA certificate. The difference between a CPA and a CMA is that a CPA is licensed by the state of his/her residence to provide accounting services to the public, ranging from auditing, tax, litigation support, and other financial advisory services. Also read which education level has the highest return on investment (ROI)?

A CMA mostly provides his/her services directly to his/her employers rather than the public. There is no extra or special training to become a CPA or CMA but there are vigorous tests for each CPA and CMA. With either of these certifications becomes more responsibilities. With the title of CPA, accountants are qualified to do a higher level of accounting services. For CMA, accountants can be mangers of companies or possibly run their own company if they choose. Industry and Target Companies

Accountants can work for almost every company! From Taco Bell to Waste Companies. If working for somebody else isn’t your style, some accountants are self-employed and have their own accounting business. Cecilia Capuzzi Simon with The New York Times writes an article “Top 10 List: Where the Jobs Are”, describing the job curve and its projections for the year to 2018.

According to Simons the Top 10 list look like this : Biomedical Engineer, Network Systems and Data Communications Analyst, Home Health Aide, Personal and Home Care aide, Financial Examiner, Medical Scientist, Physician Assistant, Skin Care Specialist, Biochemist and Biophysicist, and last but not least Athletic Trainer. If you didn’t notice, eight of the fields in the top 10 categories are health care or wellness related. Those eight health care or wellness related careers need accountants to keep track of their financial matters. And that’s where I come in handy (Simon, 2011).

Salary/Earnings

Data provided by the Bureau of Labor Statistics, the salary range for Accounting & Finance begins around $36,780 and usually tops out around $102,380, with a mean in the neighborhood of $69,580. The national salary average for Accounting & Finance is $43,460, data provided by the Bureau of Labor Statistics. Along with excellent benefits such as paid vacation and sick leave, health insurance, profit sharing, and retirement plans (Careerexplore.net).

Employment Outlook

As of 2008, accountants and auditors occupied some 1.3 million jobs. Out of these 1.3 million, 24% of these accountants and auditors were employed at “accounting, tax preparation, bookkeeping, and payroll services firms.” Additionally, eight percent were self-employed, and 68% worked for other entities such as government, corporations, and small businesses. – Data provided by the Bureau of Labor Statistics, It is estimated that during the 2008-2018 period, about 279,000 new accounting jobs will be created – an increase of 22% (Bhavsar, 2011).

Learning’s & Reflection

Accounting has been a career field I have been debating on going into for at least two years. After having a math class every semester of my schooling I have noticed I truly enjoy doing math homework and I am decently good at it. As there is to all career fields, Accounting has its ups and downs. I like the challenge of a difficult problem, but the idea of sitting behind a desk from 8 to 4, and doing almost the same thing everyday day doesn’t appeal to me. To help me get a better understanding of the Accounting Career I participated in two events. First, I enrolled in BUS 297, which is the VITA program, where I actually prepare peoples taxes every Saturday.

Truthfully I don’t mind doing their taxes, its making the small that makes me kind of uncomfortable. I’ve probably done at least 25-30 tax returns; learning a little about taxes and such but there is also so much more I don’t know. Secondly, I went to the UWMC’s Business Club meeting where Thomas Krieg from WipFli Audit Accounting Firm was the guest speaker. Krieg got an Associate’s Degree in Accounting from UWMC, then moved onto UW Madison where he got a Bachelor’s in Accounting, and is now one of the youngest Partners at WipFli’s (Krieg, 2013).

Both of these events were very beneficial because I now know so much more of the everyday Accountant life. I am very happy that I dug deeper into Accounting, but unfortunately I do not think I am interested in it as a career any more. Although I may be good at math and taxes, I don’t think Accounting is the correct career for me.

Work Cited

Bhavsar, D. (2011, January 11). Accounting degree job outlook. Retrieved from http://degreecentral.com/accounting-degree-job-outlook/ Board of Regents of the University of Wisconsin System (2012). Cake decorator: Education path. Retrieved from http://wiscareers.wisc.edu/C_CVstuff/occinfo.asp?Area=edu Krieg Thomas, Partner, CPA

Wipfli LLP. (2013, February 26). Interview by UW Marathon County Business Club [Personal Interview]. Business Club/ Accounting Speaker, Located in CCE Building. (n.d.). Retrieved from http://www.careerexplorer.net/accounting-finance Richardson, M. ( 2009, April 10). voices.yahoo.com. Retrieved from http://voices.yahoo.com/skills-qualifications-needed-accountant-2987159.html Simon, C. (2011). Top 10 list-where jobs are. Retrieved from http://www.nytimes.com/2011/04/17/education/edlife/edl

Applying the SHOOT to Pewter’s Accounting Services will help identify economic, legal, regulatory forces that affect business. This analysis will not only allow the business to Identify strength but weaknesses In Its Industry. Understanding the weaknesses of the industry will also allow to strategies for different opportunities.

By identifying threats and trends we can make bold predictions to take advantage of opportunities and changes before they come to fruition. We will be Identifying seven different forces and trends that affect business. Economic Economic trends play a major role in all businesses. This is a major factor that an accounting services business will have to force to make predictions and adjustments. Based on trends the company may anticipate hiring more or less employees. A positive strength for Peters Accounting Services is that regardless of a good or bad economic year individuals still have to file state and federal taxes.

Business will still ay quarterly taxes and need help with bookkeeping as well as annual filing of taxes for the state and federal government as well. Threats of a poor economy can tend to not impact this industry too much because it is a constant need. An opportunity for this business lies during an economic upswing new businesses are being created meaning the need for an accounting services will be used frequently. Being able to offer year round services will help fight the Idea of seasonal work that tax prepares and consultants have to compete with.

Legal and Regulatory In order to be a reputable company the Pewter’s Accounting Services should be quipped with Certified Public Accountants. A CPA is an Individual who has taken the time to take a series of four rigorous exams that have to be completed in an 18- month period (CPA Review, 2013). Accountants can don’t have to be Spa’s but there is an extra allure and makes your information reputable compared to the latter. Accountants are required to take 20 hours of continued education, which Is also referred to as CE credits this allows them to stay updated on new laws and regulations for the upcoming year (CPA Review, 2013).

Despite the requirement this is not enough time for an individual to gather and retain much of the information. A lot of time and hours with the organization will need to be dedicated to ensure that all individuals aiding in filing taxes is up to date. Supply Chain and Technology Pewter’s Accounting Services will have to take advantage of new technology available to a mass market. This external factor can be seen as both a strength and weakness. There is one major factor that gains an accounting services business.

During tax 1 OFF referrals and networking efforts throughout the year. During this time the company can impress new clients and existing clients by providing the newest or most efficient accounting software to help the customers file their taxes electronically. The accounting services will also provide its customers access remotely via a secured online site providing the clients access to their financial information from anywhere in the world. This can provide issues of security because we are dealing with sensitive information that can be used in a malicious fashion if intercepted.

Adjusting to Change and Competitive analysis Pewter’s Accounting Services will have its headquarters in the San Fernando Valley. A quick yelp search of accountants near the North Hollywood area provides a list of 109 efferent companies that offer accounting services (Yelp, 2014). The last census of North Hollywood estimated that there was over 160 thousand residence, which has only grown in the last 10 years. Despite the large number of competition in the area there are plenty of clients to go around especially when there are new adults entering the workforce every year. Working on referrals will be our strength.

Individuals and business owner tend to refer a good CPA when possible. Seasonal business can be lost to conglomerates like H & R Block who specialize in short form tax solutions at high prices. They however have big advertisement dollars that will need us to think outside the box to get business. They prepare taxes for 1 in every 7 filed returns in the United States (H & R Block, 2013). This leads to staying competitive not necessarily with H & R Block but with other single owner or partnership offices and that is by having our tax prepares go through the training provided by H & R Block.

This will give us up to date technician and trends with the industry while also allowing us to make modifications to our own strategies. Strategy Internal factors will include a structured strategy for the company. The strength of strategy will be more control of day-to-day operations. The beginning phase will be consist of building a clientele base by Joining the Los Angels Latino Chamber of Commerce along with other organizations in the area. This will help build the reputation for the firm. Keeping the staff small will be a must to keep overhead low.

Location will not be cheap but will be a necessary evil when trying to attract walk in business. Pricing will be key as well. The company cannot price too low or too high. The companies’ long-term plan is to also higher licensed representatives that can give financial advice as well. This phase of the strategy will help earn more trust in the community as well as build market share by reinvesting customers tax returns and also offering tax right off by setting up individual retirement accounts. Processes & systems In order to retain and increase the customer base follow up process need to be in place.

Email’s, Addresses, and phone number records need to be maintained and scrubbed before outbound calls are made according to the telephone consumer protection act if we are making sales calls (FCC, 2014). Most of our outbound calls will are that will be adopted by the company to standout from other companies. Our systems will also have reminders and will also send out emails periodically to give our customers industry updates. The systems for internal control will all need password verifications to view customer data.

Accessing of this data will ensure that we can keep customer information safe to help fight identity theft. Goals Accounting is a very stable form of earning a living. The goal for Pewter’s Accounting Service is to become a leader in the community. Surviving the first couple of years will not be easy, but consistency pays off in the end. Visibility will be important as individuals flock towards others that make a difference and are accessible. Despite the treat of losing customers it is inevitable to suffer attrition, but staying ahead of market trends will be required to avoid huge dips in production.

Branching out to being more than Just a seasonal service will also be key. Hiring Spa’s and accountants that can assist with other daily activities like payroll, bookkeeping, and advising will help bring in income year round. Conclusion The SHOOT analysis assisted in identifying key objectives and obstacles that a new business can face, but over come. The art of planning cannot be understated as we deiced there is internal and external factors that impact business. Perception of the world around the business is a key component of this analysis.

Professional accountant:

A professional accountant is an educated and experienced accountant who is responsible to keep a check on the company’s money flow. Business accountancy is one of the most sought out occupation in the modern day era. He works as the company’s management to determine how well a company is functioning in terms of financial reporting.

The government assesses the professional accountant’s reports to determine the tax owed by the company. The evaluation done by the professional accountant is of significant importance since investors and banks study them to determine if the company is worth investing or not.

Accounting is a very diverse field and every person involved in it has a prescribed set of tasks. Some deal with financial reports such as balance sheets and income statements whereas others are more concerned with tax planning and compliance. With more practice, one is able to become an expert in the field and can therefore be of great value to the owner as well as the business.

An experienced Professional accountant should understand his importance to the business and be able to recognize the limitations he has to work with. He has to make things work his way in order to make the right decisions every now and then. It’s not the many easy decisions that he has to take but rather the few difficult ones that make him an expert in the field. They need to plan across-the-board and execute it without fail.

Exceptional professional accountants have a network of accounting contemporaries, who help them solve the situations outside their areas of expertise. Professional accountants with exceptional skills in the field of accounting pick up opportunities that are of some value to the client and acts as a valuable asset for the business as well.

There are Four Types of Professional Accounting Specialists in the Business Market:

Public accountants: They are the type of accountants who work in public companies and do accounting for clients outside the company.
Management accountants: They are the type of accountants who keep track of the money spent and made by the company they work in.
Internal auditors: They are the type of accountants who make sure that the records made by their fellow accountants are correct. They inspect the records thoroughly to make sure that no one is stealing or wasting the hard earned business money.

Government accountants: They are the type of accountants who are responsible specifically for government funds.

In short, the professional accountant is the backbone of the company and a valuable asset who helps keep things flowing in the right manner.

Importance of professional accountants in the modern era:

The modern day world of business is dominated by globalization, it has become extremely important for organizations to grow and extend their reach beyond national boundaries. As competition is increasing and geographical limitations reducing, it is becoming more imperative for organizations to keep a stringent check on the finances being used and earned. Therefore as a result, the importance of Professional accountants is increasing proportionately.

The primary job of a professional accountant is to prepare the financial reports for the organization, analyze them and present the true picture to the people who are the chief decision makers in the company. Considering the gravity of work involved, it is imperative that the professional accountant be someone who is experienced, versatile, of high integrity and competent enough to handle any situation that might arise related to the financial structure of the company. The evaluation done by professional accountants is then used as a basis by banks and the investors to determine whether the company is a profitable proposition or not.

A professional accountant is someone who should be able to comprehend each and every situation in the best possible manner and be able to present a clear picture to the management for better decision making. He is able to understand all the limitations as well as the strengths of the company and can therefore advice the management to make profitable decisions. His purpose is not to make money for himself but to work mutually for the betterment of the company and himself.

Role of ICAP:

In Pakistan, Institute of Chartered Accountants of Pakistan is the organization/body that represents professional chartered accountants employed in different sectors all across Pakistan. ICAP has played a very decent role in promoting a different image of professional accountants other than “Munshis” who were considered to be accountants in old times. It has done so by producing accountants who are not traditional bookkeepers anymore rather they are working as business decision makers today. One of the biggest achievements of ICAP is that it has successfully inculcated business decision making capabilities into the professional accountants.

The chartered accountants produced by ICAP are according to the changing trends and latest global requirements. The quality of these accountants is accepted all over the world as one of the best. Moreover, ICAP and ICAP members are doing an amazing job by conducting workshops all over Pakistan which aim at educating accountants about today’s needs and global standards. These workshops have been quite productive so far and have been ranked by accountants as the best learning experiences. ICAP members have also written books on the role of professional accountants in modern era. These books are being used as a part of curriculum in many accounting and business schools/institutes of Pakistan. Also read My Dream Job Accountant Essay

ICAP is also helping non-members through its publications. “Pakistan Accountant” is a monthly magazine by ICAP that aims to inform accountants and students about latest happenings in the accounting world. Similarly, a monthly newsletter is also very popular among the professional accountants all over Pakistan. One of the objectives of these publications is educating the role of professional accountants in modern era. At the ICAP’s golden jubilee ceremony 2011, the president highlighted the role that ICAP has played over the past 50 years. President’s words: “Over the years numerous developments have taken place within the accounting profession.

The role of accountants has gradually evolved from a stereotypical image of bookkeepers to that of business advisors. The Institute, being the custodian of the accounting profession in Pakistan, has gradually evolved processes to ensure transparency, accountability and good governance within the profession.

Simultaneously, your Institute has firmly established itself as a premier institution which produces qualified accountants, who are not only in high demand within the country but have also made a mark for themselves outside Pakistan.”

References:
http://www.accountant-search.com/business-accountants.html
http://www.articlesbase.com/accounting-articles/the-importance-of-a-business-accountant-in-the-modern-times-2026251.html http://bizcovering.com/management/importance-of-modern-management-accounting-practices-in-modern-business-organizations/ http://thefinancialdaily.com/news/national/icap-honours-fresh-accountants-41128.aspx http://www.icap.org.pk/web/index_sub.php

The chairman should have been or presently a senior practitioner in public accountancy. 14. The following sectors represented by the PICA to the membership of AAAS have one representative, except a. Government c. Commerce and industry b. Public practice d. Academe 15. Statements on financial accounting standards constituting GAP are issued by the a.

Philippine Institute of Spas. C. Audit Standards and Practices Council. B. Securities and Exchange Commission. D. Accounting Standards Council. 16. Indicate whether the following functions would be performed by: P S – Senior M – Manager AS – Audit Assistant (1) Supervises two or more concurrent audit engagements Performs detailed audit procedures Overall responsibility for audit Signs audit report s d. 17. The amount of audit fees depend largely on the – Partner a. Size and capitalization of the company under audit. B. Amount of profit for the year. C. Availability of cash. . Volume of audit work and degree of competence and responsibilities involved. Page 3 of 7 18. In determining audit fees, an auditor may take into account each of the following except a. Volume and intricacy of work involved. C. Number and cost of manors needed. B. Degree of responsibility assumed. D. Size and amount of capital of client. 19. Under this method of billing a client, the external auditors charges on the basis of time spent by principals/partners, supervisors, seniors and Juniors at predetermined rates agreed upon with the client Maximum fee basis c.

Flat sum basis Retainer basis d. Per diem basis RA No. 9298 – Philippine Accountancy Act of 2004 and its AIR 1 . Which of the following is not one of the specified objectives of the Accountancy Act of 2004? A. Examination for registration of Spas. B. Supervision, control, and regulation of accounting practice. C. Standardization and regulation of accounting education. D. Promulgation of accounting and auditing standards. In all of the following situations except one, a person is deemed to be engaged in professional accounting practice.

Which of them is the exception? A. Performing audits or verification of financial transactions and records for more than one client. B. Employed as the department chairman that supervises the BAS program of an educational institution. C. Employment as controller of a private business enterprise and such employment squires that the holder thereof should be a CPA. D. Appointment in the government where first grade civil service eligibility is a prerequisite. A person is not deemed to be engaged in professional accounting practice if a.

Her merely holds himself out as skilled in the science and practice of accounting and qualified to render services as a CPA. B. He merely offers to render services as a CPA to the public, but does not actually render such services. C. He offers or renders bookkeeping services to more than one client. D. He installs and revises accounting systems for more than one client. Practice in Public Accountancy shall constitute in a person a. Involved in decision making requiring professional knowledge in the science of accounting, or when such employment or position requires that the holder thereof must be a certified public accountant. . In an educational institution which involve teaching of accounting, auditing, management advisory services, finance, business law, taxation, and other technically related subjects. C. Who holds, or is appointed to, a position in an accounting professional group in government or in a government owned and/or controlled reparation, including those performing proprietary functions, where decision making requires professional knowledge in the science of accounting, d.

Holding out himself/herself as one skilled in the knowledge, science and practice of accounting, and as a qualified person to render professional services as a certified public accountant; or offering or rendering, or both, to more than one client on a fee basis or otherwise. Any position in any business or company in the private sector which requires supervising the recording of financial transactions, preparation of financial tenements, coordinating with the external auditors for the audit of such financial statements and other related functions shall be occupied only by a duly registered CPA.

Provided (choose the incorrect one) a. That the business or company where the above position exists has a paid-up capital of at least and/or an annual revenue of at least b. The above provision shall apply only to persons to be employed after the effectively of the Implementing Rules and Regulations of RA 9298. C. The above provision shall not result to deprivation of the employment of incumbents to the position. D. None of the above.