Study Overseas

These include:

• the increasing sophistication and complexity of contemporary business
• the increasing internationalisation/globalisation of business
• rapid improvements in communications and technology
• greater accountability demands on business by societies

All of these pressures are closely interrelated and interdependent, and as one increases is seems inevitable that the others will too. In every country in the world, business practices are becoming increasingly complex. This has resulted from the increasingly complex forms of business ownership - amalgamations, mergers and takeovers. In attempting to reduce competition and win ever-increasing shares of markets, in some industries some business entities are reaching sizes never imagined a few decades ago. Some novel forms of business activities have emerged, such as new forms of financial securities - the many and varied derivatives and hedging techniques. Businesses are being managed through new, sometimes merely fashionable, management concepts. For example, total quality management, total productive management, activity-based costing resulting in greater demands on business advisors for risk assurance.

Business activity has transcended traditional demographic boundaries; there is an increase in global commerce. Multi-national, Transnational (TNC) and even global companies have emerged as major players in the economic activities of all states. Business is transacted over national boundaries, in many different currencies and expressed in many different languages.

In many countries, there has been an increasing demand by societies in general for decision-makers to be more accountable. There is a greater awareness of the fact that resources are ultimately scarce, so those who have charge over them should use them in the most judicious way, for the greatest benefit of those who provide the sanction of their use: the societies in which they operate. Sometimes this has been the result of dramatic or catastrophic events, such as the Bhopal gas leak, the nuclear accident at Chernobyl, or the environmental disaster of the Exxon Valdiz oil spill. Many more times, they have come from an enhanced local awareness of living in a new century. Governments as well as the commercial sector have felt the pinch of this pressure. Accountability seems to be the catchcry.

These are just some of the more obvious pressures on business in the 21st century. Accountancy facilitates business activity by providing information on the economic actors. The discipline has to meet the needs of the economic decision-makers by continuing to provide reliable, relevant, useful and timely information. An effective accounting education program has to respond to, and even anticipate, these new demands that have been placed on accountants. Not all university accounting courses have adapted to this need - but fortunately, some have. Programs such as those from the Department of Accounting and Finance at the University of Wollongong, where emphasis is placed on student-centred learning. Students are encouraged to challenge existing knowledge and present creative and innovative solutions to contemporary problems facing the discipline. During the learning process, students are required to reflect on what they are learning, and how they will approach problems when they face them in their professional careers.

The general problems described above are addressed in the Department's accounting program. Extensive use is made of computers and the Internet - global electronic business is viewed as an essential element of accounting education. Thus, graduates are fully aware of the global aspects of modern business. Communication skills are developed as well as teamwork. Not only does this enhance personal confidence, it makes graduates more attractive to prospective employers, as the ability to work in teams and communicate with clients, peers and superiors in the work environment is crucial.

Students are increasingly combining other majors with accounting, giving them an edge in the employment market. These other majors include finance, information systems, marketing, international business, electronic commerce and many others.

Those contemplating a career in accounting-related areas should choose carefully the institution from which they will gain their professional education. It should be one that fully recognises the environment of 21st century business.

Author
Professor Michael Gaffikin
School of Accounting and Finance
University of Wollongong