The Practice of Accountancy - Essay Example

Reflection Essay for the Semester Name Date The course work started with the introduction to the regulatory framework and the theories that guide the practice of accountancy. Having a preconceived idea that accountancy is all about numbers, I initially did not appreciate why it was necessary to learn about the accounting regulation and theory. However after the lecture, I have appreciated the fact that accountancy does not exist in vacuum and as such has to be regulated just like any other profession. The study on accounting theory has also helped me to appreciate the historical foundation on which accounting is practiced taking in to cognisant the assumptions and logical reasons informing the conduct of such accounting practices. Through the lecture, it become clear that such regulatory framework and theory helps in ensuring that there is some degree of uniformity in how financial transactions are recorded and the financial statements prepared and presented since all the people carrying out this work will be informed by the same accounting theories and operating under a relatively similar framework. The knowledge of the above fact helps me to appreciate the practicality of the regulatory framework and accounting theories in a real life situation in the work place. To further build on the previous knowledge acquired on tutorial one, tutorial two was about conceptual framework and accounting standards. Like many other professions, accountancy as a profession operates under a certain conceptual framework and is guided by a number of standards. Some of the advantages of this are to ensure that the financial accounting reports prepared posses some uniformity and hence comparable form one company or reporting entity to the other, there is transparency in their preparation and also to ensure that the financial information provided by an entity is relevant. I learnt that the issue of relevance of the financial information emerges from the fact that the accounting standards require the reporting entity to give the most current financial information of the entity that represents the most fair and true position of the company. Standards therefore ensure that organization do not report only what they want to report but they are guided into reporting what is relevant to the information users and report so in a truthful manner so as to make the information reliable. During the tutorial, I was also able to learn that the accounting standards are and can be influenced by the politics of the day. The government that is in place under which the company operates my demand that the company presents its financial reports in a certain way and also that the entity includes certain information in the reports to which the company has to comply. This therefore made me to realize the need to keep a closer eye on the government’s policy as well as the politics of the day as they may have an influence and effect on how I carry out my account work when I embark on my accounting career. Prior to this Unit, I did not know that research had a role to play in development of accountancy. My understanding of accountancy was that it is a profession that operates under already established rules and guidelines and hence there was no room for research to make accounting practice better. However through the lectures and tutorials I have attended, I have come to appreciate the fact that more research in accountancy would be necessary so as to come up with new standards that would make accounting more receptive to the current times and environment that businesses operate in today. Research also is also important in helping the students or even a practicing accountant to gain solid background knowledge about the theories informing the accounting principles and practice as it is today. Such knowledge is important in making one to have a better command and authority in accountancy practice as well as being more effective in the work place. The use of movies and video clips as tools of learning have according to e proved to be excellent ways of driving important ideas and concepts home. An example is the inside movie that I watched at home that gave me a good insight on business ethics and how most business people fail to conduct their businesses in an ethical manner. It however impressed on me on the need to always observe the code of ethics relating to my profession the time I will start my working life regardless of whether others do the same. The film clip on research further reinforced my understanding on the need for research to generate new knowledge about the accounting practice so as to make the profession more responsive and relevant to the ever changing social, political and economic environment. More use of videos especially those that would give students an insight about the real working life environment and what other skills they will be expected to possess beyond the masterly of the academic concepts will add more value to the quality of learning. It will also help the students appreciate the applicability of whatever concepts they are taught when it comes to the working life. Another interesting area that I have learnt in course of the tutorials is the area of harmonizing and standardizing the accounting principles and practice. My obvious thinking was that it is very necessary to standardize the accounting principles across all countries so as to ensure that there is comparability between the accounting reports prepared by the various countries on the world. However, another view point that I had never thought about came about which touches of the cost associated with standardization of accounting principles. Different companies located in different countries operate under different business environments and cultures which mean that standardizing the accounting practice across all countries would lead to extra cost to some companies in the different countries. This is therefore one of the areas that I came to appreciate the role that research can play so as to strike a balance between the need for standardization and the cost related with standardization. One thing I didn’t like before the unit began was group work. I am one person that preferred to work as an individual to accomplish my task but all along the tutorials we were called upon to discuss various issues in groups. Initially, I was uneasy with this but as the tutorials proceeded and more group tasks were assigned to us, I became more comfortable with the groups. This was also helped by the realization that the work environment entailed in many instances working with other people to accomplish the tasks at hand. As an accountant or an auditor, I realized that I would require engaging other people from various departments or outside the company either when making inquiries or giving reports and therefore it was important to develop teamwork spirit. I was a poor planner with limited organizational skills before I stated this unit. In fact I had lots of problems preparing and developing my learning log in the beginning of the course. Ordinarily I would have prepared the learning log after the end of the unit where I would have spent some time trying to recall how the semester have been and what to include in the log. However, with my resolve to be more organized and to improve on my planning skills, I made a decision to be updating my learning log every evening after the lecture to ensure that I did not lose count of important information. This has refined my organizational and planning skills at the same time helping me to keep tab on what I have learnt for the first tutorial through to the last one as I kept on going through my learning log to make additions of anything I had omitted as well as ensuring that it was up to date. The preparation of a learning log is a great idea to aid students in learning and I would recommend that it becomes a requirement in all other units. Communication is also very important for the success of a professional accountant. I realized that would be required in course of my working life and therefore it is necessary that am able to develop public speaking skills to clearly articulate issues before people. In addition to having a thorough understanding of the accounting principles, theories and standards and the knowledge on how to apply them in the real life, I learnt that it was equally important to present the financial reports generated thereof to the relevant people in a clear manner. This would go a long way in ensuring that am an all round professional as well as ensuring that my career growth is unhampered. The unit has also refined my writing and organizational skills which is key to writing good reports and ensuring that I organize my work in a logical and easy to follow manner. Read More