Question 27Q - Intermediate Accounting (Kieso)

Question

What are some of the major challenges facing the accounting profession?

Step-by-Step Solution

Answer

Some of the major challenges faced in the accounting profession include items such as nonfinancial measurement, forward-looking information, soft assets, and timeliness.

Meaning of Accounting Profession

The accounting profession is defined as the duty of recording the transactions of a business in the books of account, which assists in maintaining the accounting records for business activities.

Major challenges faced in the accounting profession

Primary challenges facing the accounting profession refer to the following items:

• Nonfinancial measurement: One of the difficulties faced by the accountants is how to report important key performance measurements like backlog information, customer satisfaction indexes, and reject rates on goods bought.

 

• Forward-looking information: Another challenge is the ways to report more future-oriented information.

 

• Soft assets: In what manner one should report on intangible assets, like marketing background, marketing supremacy, as well as well-trained employees.

 

• Timeliness: Another difficulty faced is in what manner one should report immediate information