Being Accounting Professional, the Integrated Reporting and Accountings Positivistic Tendencies - Assignment Example

Name: Tutor: Title: Accounting in the context for being Accounting Professional, the Integrated Reporting and Accounting’s Positivistic Tendencies Course: Date: Tutorial 11 topics: The meaning of being an accounting professional -Thought Activity-Photographs related to what it means to be an accounting professional With no walls -This photograph best suits the very small and start-ups firms where with all the desks, filing cabinet and photos not seen on the walls, a person can easily confuse his or her office for the firm. In this case, an office is considered as a place where staffs execute their day-to-day activities and clients send their payments or checks. This is totally different with accounting firm which is not an office but a collection of people who share a purpose. Therefore, provided there are light virtual firms without offices, receptionist and server room can be established. However, midsized and big firms identified with significant reputational investment in leases and equipment may not find it easy to shift to a virtual environment. On the other hand, small and start-up firms will find easier time and cheaper to develop. Spying on your clients -Firms of all sizes are affected by this issue because a number of accounting firms use the social media for their social listening, follow their clients’ tweets and blogs, visit Facebook posts to get their views and learn what their clients do. Therefore, spying is a great way to get undisclosed view of what the clients is up-to and what seems most appealing to them. Such information is useful in understanding the tactics used by competitors. This photo is self-explanatory and is intended for advertisement purposes -This photo shows that failure to uphold the required accounting ethics within the small businesses can create legal challenges. Therefore, it is important to understand and uphold ethics in accounting field. In most case, small business investors focus on ethical collection and delivery of their financial information. This in very many occasions places them at risk particularly if accounting ethics are not well-preserved. Thus, small business owners, investors and managers need to learn the significance of accounting ethics so as to avoid finding themselves in legal and financial trouble. The Outsourced CFO -For firms that provide accounting services and aims at expanding their service offerings, they are more interested in becoming the virtual back office or CFC particularly for growing company. Different and new cloud tools are helping firms to accomplish this tasks based on the collaborative nature of products that are compatible and work simultaneously on similar version of accounting product. As a result, more opportunities are created to enable deeper advisory services. Sending securely -The communication that take place between colleagues and clients is often comprised but majority of the people are caught unaware. Therefore, it has becoome crucial to keep all that is exchanged secure whether it is a text or email, facilitated by the availability of many tools to handle the related security measures. Such tools range from the use of portal technology in a large and the entire client base of a firm to individual practitioners who use simple email encryption technology. -Tutorial Engagement Activity -Post-Though Activity 1. My experience of this tutorial activity, in general Generally, this tutorial activity was a really demonstration of what it means to being accounting professional because various situations or photographs that have personal meaning of being a pro accountant were analyzed. It also involved assessing the different views from different group members on the topic of meaning of being accounting professional. This clearly meant approaching the notion of accounting professional in a different way. 2. How I felt when completing this activity On completion of this activity, I felt very tired because establishing the relevant photos with personal meaning of being accounting professional required me to clearly understand the concepts underlying the notion. 3. The two useful aspects of this activity For firms that provide accounting services and target to expand their service offerings, they are more interested in becoming the virtual back office or CFC particularly for growing company. Therefore, critical thinking or self appraisal is a key element towards understanding what it means to be accounting professional. 4. The two aspects of this activity not liked The most aspect not liked in this activity is that for any element of either accounting professional, there was a need to illustrate how the notion is either cautiously or carelessly practiced in the accounting field and society at large. 5. A description of what it was like to take photographs for the task. Whether if it was difficult and if so, could there be a reason for this? First and fore most, I would say that taking the photographs was such a difficult task because it involved consuming too much time establishing relevant photos that have personal meaning of being accounting professional. Secondly, understanding the message communicated in the photos and relating them to the real situations of being an accounting professional meant applying too much critical thinking skills. I think the main reason why it was so difficult is to allow the learner-that is me in particular to develop some critical thinking to assess and relate the practical situations of how a pro accountant is expected demonstrate while executing his or her tasks. 6. Any surprises when discussed and compared ideas with fellow peers. If yes, how the surprises make you feel It was surprising to me to find that fellow peers had different ideas about what being professional means. My fellow peers could and provide detailed explanations of various situations that being accounting professional could be practiced and assessed based on their photographs. 7. The extent to which the activity has assisted me in understanding myself as an individual better. Reflect on how such makes me feel. To a greater extent, the activity has enabled me to understand myself as a critical thinker, able to relate theoretical situations to practical situations. Therefore, I have developed skills and knowledge on how to become responsible accounting professional not only in the accounting field but also in the environment and entire society working from. 8. Based on the common attributes the group discussed on ‘being professional’, how I would go about further developing these for myself. -Develop more virtual environment to expand the business of accounting and the associated serviced provided - I will use the tactic of spying to get undisclosed view or updates about the clients’ feelings, mission and what seems most appealing to them. In so doing, I will be able understand the tactics used by competitors. 9. Outline of what I gained personally from completing the activity -Personally, I gained critical thinking skills to assess really situations of being accounting professional - I discovered the importance of creating virtual environments to enable in the provision of accounting services and plan well to expand their service offerings -This activity has made me to develop some critical thinking skills useful in assessing and relating the practical situations of how a pro accountant looks like while executing his or her tasks. Tutorial 12 topic: Integrated Reporting -Thought Activity-IIRC framework The International Integrated Reporting Council (IIRC) is a global coalition formed by the accounting profession, regulators and investors, companies, NGOs and standard setters. The coalition share the belief that corporate reporting must evolve in order to give a clear and concise communication regarding how the strategy, governance as well as performance and prospects of an organization within the context of its environs impact the creation of value in the short, medium and long term periods (The International Integrated Reporting Council (IIRC) 2013). Basically, IIRC framework aims to meet such needs and establish a foundation for the future. The most fundamental aspect with IIRC that makes it unique from the current reporting requirements is that it acknowledges that integrated reporting is still in the formative stage, and thus plans to ensure appropriate review and update of its framework as it gains more practical experience. It is important to note that IIRC plans to develop a database of emerging reporting practice to encourage future accounting professionals to stay current with the requirements of integrated reporting and develop more practical experience in the accounting sector. It is apparent that the IIRC framework has been appropriately drafted on the fundamental concepts of value creation, the capitals and business models. I think the main objective of drafting IIRC was to provide a framework to act as guiding principles for future accounting professionals to assess the materiality and conciseness of their information based on the report users. In my view, I would say that the IIRC framework will enable future accounting professionals to continuously recognize the integral role played by the intended reports users as the primary providers of the financial capital. In order to achieve reliability and completeness in their integrated reporting responsibilities, future accounting professionals can easily learn from the IIRC framework that developing robust internal reporting systems, promoting appropriate stakeholder relationships as well as external assurance will enhance the reliability of their reported information. Since credibility of the reported information determines its reliability, my view is that the IIRC framework will work to ensure that the current and future reporting requirements expected by accounting and assurance professionals or auditors are adhered to. This is because the framework clearly provides the key reporting criteria against which various organizations as well as assurance providers across the world are required to assess the adherence of their reports. Therefore, the IIRC framework is intended to enable organizations and future accounting professionals with the appropriate guiding principles and content elements that will govern sustainable process and contents of integrated reports. Generally, I am glad that the IIRC framework is drafted on the key guiding principles such as consistency and comparability, reliability and completeness, connectivity of information and stakeholder responsiveness, strategic focus and future orientation as well as materiality and conciseness. These elements are crucial in promoting ethical standards and practices in the accounting profession. -Tutorial engagement activity (I) Activity one Successful capitalism as stated by Diplock, Jane-the director of Singapore Exchange Limited, will require financial stability and sustainability. Therefore, integrated reporting will strengthen the two in order to achieve a more resilient global economy. It is true that capitalism needs more financial stability and sustainability because strategies used for creating value must be clear, long-term investment must be encouraged, clear communication has to be made in regard to how risks are managed and cost of capital maintained low as well as ensuring high quality human or intellectual resources and customers that play an integral role in achieving financial success. From the above statement, it can also be noted that although the need for transparency and accountability from all companies have raised a concern for change particularly in the type and volume of information provided in corporate reports. It is quite clear that a new reporting model is highly required to enable businesses make their communications more effective so as to support decisions that promote secure financial stability as well as sustainable business practices. This clearly explains why the international businesses support innovative global development and inspire the new reporting practices that positions businesses in control of raising the awareness of how they create value and enhance underutilized value to change conditions into financially stable and more sustainable business environments. Such international businesses that are worthy mentioning include; Unilever, Tata Steel and Prudential Financial. In my view, resilient global economy can be achieved only if businesses are encouraged to provide information regarding how various forms of capital entirely increase their ability create value. This implies that integrated reporting is the appropriate way in which businesses as well as investors can accurately assess the value associated with the sustainability of an economy and society. (ii) Activity two -comments, ideas, thoughts and questions regarding the IIRC Framework Due to increased demand for more concise and value-relevant information from funders of financial capital, I would comment that the IIRC is rightfully drafted to support the requirements and concepts of integrated reporting. Therefore, the IIRC Framework is basically drafted to show that in the future, integrated reports will be entirely considered as corporate reporting norm for all businesses. It is relevant for the integrated reporting process to be applied in a continuous manner to the related reports and communications. Therefore, establishing links to other reports and communications to include financial statements as well as sustainability reports is the ideal way as suggested in the IIRC Framework. Although it is quite clear that integrated reporting will evolve over time, to a greater extent the contents of the IIRC Framework provide appropriate elements and guiding principles that organizations can use as basis for preparing their integrated reports, ensuring that report users have the intended information ability their capability to create value whether in short, medium or long term period (Druckman 2012). However, organizations should stay current or updated with change requirements made in the international accounting bodies or accounting field for that matter. -Post-thought activity what integrated reporting means for the future of accounting information, company reporting and assurance of such. Generally, corporate reporting is concerned with communication and accountability. Although financial statements have over time been considered a major element within the corporate reporting chain, the fundamental question remains whether if or not that will be the same in future of accounting, company reporting and assurance of such. Probably that will not be the case because it is apparent that a new vision is required for corporate and financial reporting (Eccles, Cheng & Saltzman 2010). In my view, this also includes the related assurance that the accounting profession provides. Even though it might be clear that providing future-oriented information based on promptly stated assumption is an integral aspect of integrated reporting, I would say that it is crucial to understand the legitimate concerns that make companies to undertake such a step in their business operation. A fresh thinking about integrated reporting is highly required to understand the future of accounting information, company reporting and their assurance as it has already been noted that IIRC issued a draft for global discussion to get views from the international business or public community in connection to how enhanced business reporting can be achieved in an integrated manner (Vaessen & Tant 2012). The fundamental question is how to understand the sustainable beneficial of integrated reporting. In this case, the most notable thing is that integrated reporting is shifting beyond the traditional approach of collecting information and reporting to involve a more comprehensive analysis and presentation of the value and performance of a company. In so doing, organizations are encouraged to develop a holistic view of their information that is only useful to their business model and strategy as well as increase their capability to create sustainable value whether in short or long term period. However, an integrated report must provide relevant information that meets the needs of each stakeholder group to enable them make comparisons and take sustainable actions (PricewaterhouseCoopers (PWC), 2012). Tutorial 5 topic: Accounting’s Positivistic Tendencies: Overlaying a Social Science with Pure Scientific Rationale - Tutorial Engagement Activity Activity one –question 3 Although there is need to ensure a real social and responsible banking practice, Kern and McGuigan (2009, p.44) idea of freely disclosing specific goals and achievements and reveal their relation to the general sustainability agenda, might not be in the best interests of banking industry. By focusing on improving the risk disclosure of banks, it would be relevant to reconsider the critical time when the global financial crisis took place because the trustworthiness of investors in banks as well as their associated business models has not been fully restored. Thus, it is important to first rebuild the confidence and trust of investors within the banking industry to ensure the future of a sustainable financial system. Over and above, it would be vital to respond to investors’ demands for enhanced risk disclosures. Therefore, banking industry might not freely disclose specific goals and achievements and reveal their relation to the general sustainability agenda, but adhere to the requirements of international regulators and standard setters so as to enhance the banks’ ability to risk disclosures. -Post-Thought Activity How my education has been constructed in terms of; Professional accounting bodies have played an integral role in my education because they have had an upper hand or influence over the construction of my accounting education programmes and curriculum design. In my accounting training, such bodies have imparted in me the technical and skills in managing tax, financial reporting as well as assurance and governance requirements. It is vital for professional accountants to build their personal commitment based on the professional principles. This implies that the accounting firms have played an integral in shaping educational outcomes. Professional accounting bodies have had a great influence in my education by shaping my accountancy profession. Bodies such The Institute of Chartered Accountants have enabled me to develop skills and knowledge in measurement, ensuring assurance in the provision of financial information useful to managers, investors, decision makers in resource allocation and tax authorities. As an accounting professional, I learnt the requirements of responsible financial reporting and assurance. For example, successful financial decisions are made by people who have received the knowledge and guidance about the importance of adhering to the highest technical and ethical standards. The International Federation of Accountants (IFAC) plays a big role in an accountant’s educational outcomes. As an international body that represents all other major accountancy bodies in the world, IFAC ensures that professional accountants develop the high standards expected of them to enhance the quality of their services. IFAC promotes high standards amongst professional accountants through its ethics committee that monitors the code of ethics that are considered to be aligned standards across the globe. The code of ethics aims to monitor the responsibilities of a person employed an accountant are executed in return for the well-paid career of an individual with high status. From the relationship between professional accounting bodies, accounting firms and international accounting bodies like IFAC or IASB, I have also discovered that the need for more transparent information, has led to development of reporting standards as well as expansion of local and regional markets. These entirely require greater public trust given the current globalization and the capital flow across the world. As a result, new challenges have risen where only improved accounting practices as well as related financial reports for different investors, financial analysts and regulators can be useful in the accounting sector. As such, I have clearly understood why IFRS developed from International Accounting Standards Board (IASB) were established to address such a need based on the principles of transparency, comparability and disclosure from publicly listed companies across the globe. It also clear to me that the aim of an accounting workforce is to support the public interest as well as ensure effective working of various capital markets. As an accountant professional, I have noted that my public confidence is driven by my expertise and integrity. List of references Druckman, P., 2012, “Business Leaders: What you need to know, International Integrated Reporting Council (IIRC)”, Retrieved October 8, 2014 from, Eccles, G.R, Cheng, B & Saltzman, D., 2010, The Landscape of Integrated Reporting: Reflections and Next Steps, Harvard Business School. Kern, T & McGuigan, N., 2009, “Banking Better?” The Chartered Accountants Journal, Vol. 88, No.9, p40. PricewaterhouseCoopers (PWC), 2012, “Integrated Reporting: The Future of Corporate Reporting”, PricewaterhouseCoopers AG, Retrieved October 8, 2014 from, The International Integrated Reporting Council (IIRC), 2013, “Consultation Draft of the International Framework”, Retrieved October 8, 2014 from, Vaessen, M & Tant, O., 2012, The Future of Financial Reporting, KPMG May Insight Briefing in Accountancy. Read More