Reaction Paper- Asian and Global Crisis Essay

reply Paper Asian and Global Crisis During the Asian and Global Crisis many of the criticisms be against accounting system and accountants. In my further readings, Ive read that during the Asian Crisis in 1997, where affected countries suffered severe setbacks in their economies and where development stagnated, the accountancy profession, including its standards, policies and levels of information disclo sure as shootings, had contend a role in the start of the crisis, and perhaps had even worse it.Moreover, Ive besides read that during both crises, the Asian Crisis and Global Crisis in 2008, insufficient clarity in what was being heedful, the wrong things being measured or things being measured inappropriately, consideriness of standards, inadequate transparency and vile estimable conduct, in short, poor corporate governance is the main fullness and depth of the crises. As a coming(prenominal) accountant, what give I do after whole the doubts and criticisms against the profession?In my opinion, sufficient clarity on what to measure, measuring things appropriately, following the applicable standards, adequate transparency and best ethical conduct are the things that I should carry out. It should be clarified in the accountant on what is the thing that he/she should measure. If Im the accountant I should be knowledgeable on the nature and I should return understood necessary facts about the account when doing measurement or on examining the reasonableness of the measurement method used by the management.In addition, in measuring risks like pecuniary risk, I should use a sensible and reliable risk measurement technique because the information that Ill be giving will be the basis for the managements decision-making. If I exact measured the things incorrectly or a wrong technique has been used, it could be misleading to the decision-making of the management and may cause chaos in the future to the company. In an accounting perspective, applic able generally true accounting standards should be used in the accounts of the financials of the company.Strict compliance should be ob act so that transactions are properly recorded, summarized, classified and accounted for. Adequate disclosures should also be done. In the auditing perspective, as an auditor, auditing the company should be in compliance with the applicable generally accepted auditing standards. The auditor should be independent so that the opinion will be unbiased. I would like to emphasize that in compliance with the generally accepted auditing standards, the auditor should always take into comity if the company provided adequate disclosures.Disclosure on significant matters is really serious for the users who dont have enough information regarding the matter will be informed. However, I have read in an article that in that respect is also a lack of standards that also caused the hitch on crises. Regarding the lack of standards, I think it is already in the hands of the appropriate groups with authorities. Accountants need to refocus the structuring of financial transactions so that they comply with generally accepted accounting principles and that the economic substance of financial transactions is communicated.More right and ethical awareness needs to be instilled in the individuals who deceitfully social system financial transactions. Regulatory bodies need to ensure more transparency by closing loopholes and better enforcement of accounting standards. Audit committees, need to be sure that a company is communicating the true economic reality of the financial transactions and financial position of the business entity. Off-balance-sheet financing is one of the most(prenominal) significant ways, among others, that the user of financial statements can be misled.It is time for restrictive bodies to eliminate overly rules-based standards, clearly state the economic objective of from each one standard, and require firms to disclose t he economic motivations for the accounting practices they adopt. While making astuteness accountants need to be cautious and prudent. Accounting transactions and other events are sometimes uncertain but in order to be applicable it should be reported in time. Accountants have to make estimates requiring judgment to reproduction the uncertainty. Prudence is a key accounting principle which makes sure that assets and income are not overstated and liabilities and expenses are not understated.The bottom-line for all of these is to have good corporate governance. As defined by Robert M. Bushman, corporate governance structures serve 1) to ensure that minority shareholders receive reliable information about the treasure of firms and that a companys managers and large shareholders do not ruse them out of the value of their investments, and 2) to motivate managers to maximize firm value preferably of pursuing personal objectives. I believe that all of the things I have mentioned are s ome of the keys that can help me as a future accountant in dealing the reality and to get out of all the doubts against the accounting profession.