CURRENT ISSUE IN ACCOUNTING PROFESSION

Emerging Issues in Accountancy Practice Accounting profession is a profession of many parts because it provides indispensable services to the world and the societies at large (Salmanulfarisi, 2102). The significant services rendered by the professional accountants make them vulnerable to whatever changes happening in the world of commerce (Salisu, 2010). By this, some of the issues facing accounting profession today include the following: globalization and International Financial Reporting Standards (IFRS) (Ezeani,2012); technological advancement (Oduware, 2010); the need for a global code of ethics for plasticising members (Asobi, 2010) and the increasing need for sustainability reporting and corporate governance (Akhidime, 2013). These issues mentioned are not exhaustive but they are the most pressing issues in the country if not in the whole world.

be a part of international convergence which is necessary for a single global high quality set of financial reporting standards to meet the objective and needs of economic globalization (Fowokan, 2011). The emergence of common and global reporting standards has been a great challenge to some of professional accountants especially those that have been in private practice for donkey years. On the other hand, it is also a big challenge to accounting educators, who have to be trained in order to review the necessary aspects of their curriculum, update their teaching materials and impart this knowledge and skills to their students (Azobi, 2010). The key implications of this situation for professional accountants in Nigeria according to Garuba and Donwa (2011) in Ezeani (2012) are:

(i) Nigeria is still developing and needs all the contribution it can get from the accounting profession;

(ii) Accounting educators (especially professional bodies such as Institute of Chartered Accountants of Nigeria (ICAN), Association of National accountants of Nigeria (ANAN)) are the ones who will prepare their students to be the workforce in the globalized world. They are however faced with the financial implications of acquiring necessary knowledge and skills.

(iii) Information and communication technology will play a huge role in getting around this challenge. Another challenge that worth mentioning here is the facility for the training, Nigeria as one of the developing countries lacks some of the basic facilities that can facilitate effective training. For instance, professional accountants that could not avoid travelling to advanced countries to advance their knowledge would ordinarily go for on-line training, but erratic supply of the facility can serve as a great barrier. Therefore, inadequate provision of basic needs of professional training facility may hinder effective performance of professional accountants in Nigeria.

THREATS OF ACCOUNTING PROFESSION

 Based on a review of extant literature, accounting profession is engulfed with some challenges and threats which influence the development of the profession in any country.

(a) Economic Condition: Economic conditions are a major determinant in the development of a country‘s accounting profession. Hence the impact of economic environment on accounting development/practice has enjoyed wide discussion in accounting literature. As economies develop, it is argued that, the social function of accounting to measure and communicate economic data becomes important (Belkaoui, 1983).

(b) General Education: The way in which accountants are educated and the sophistication of that education are critical to the ability of the profession to develop and perform its duties and responsibilities. Hence education can be seen as the pillar for modern complex accounting system. A 1993 UN global survey on accounting, according to Johnson (1996), found a positive correlation between the status of the profession and the quality of accounting education.

(c) The Profession: The strength and competence of a profession can be influenced by the profession itself. That is, the policy a profession adopts and the attitude of the society towards those policies can affect the status of the profession, the type of persons who enter it, and its credibility. In some countries, accountants occupy a highly respected place in society and it attracts high caliber individuals as a result. In order to attract high caliber individuals and perpetuate itself in the society and hence monopolize the market for its services, professions sometimes act in such a way as to circumscribe their membership.

(d) The Stock market: Where a well-developed capital market does not exist, the need for informed and reliable financial statement may not be realized. But a well-developed capital market, with established stock exchanges and high degree of public shareholding, raises a critical and crucial need for reliable financial reporting and disclosure. This gives impetus to development of accounting profession.

CHALLENGES TO ACCOUNTING PROFESSION.

The following are challenges to accounting profession.

 (a) Politics, Maladministration and Corruption: Bureaucrats and bureaucracies, whether in democratic or military regime has exercise considerable power in the society, polity and the economy. For instance, Pourjalali and Meek (1995) finds that the Iranian accounting environment changed following the 1979 revolution in Iran.

(b) Legal/Tax Factors: Lawrence (1996) observes that the legal system of a country has direct impact on development of accounting profession because accounting is directly dependent on legislative requirements and government determines and enforces these requirements. In many countries, the legislative requirements and laws contain details specifying comprehensive accounting rules and procedures. For example, the income tax laws of countries have some influence on accounting practice and development.

(c) Bribery and Corruption: The accounting profession has been the subject of severe criticism in recent times following the extensive corporate collapse such as Enron in the United States of America, and the financial statement fraud involving Cadbury Plc. in Nigeria. As noted by Emenyonu (2007), corruption is a universal human problem as it exists in every country of the world. However, there are countries where corruption is so pervasive that it makes impossible any effort at progress. In countries where corruption is rife, accountability processes could be weak and any attempt to make progress in development of accounting profession/practice under such circumstances is likely to be frustrated.