Reaction Paper- Asian and Global Crisis Essay Example for Free

Reaction Paper- Asian and world-wide Crisis EssayReaction Paper Asian and Global Crisis During the Asian and Global Crisis many of the criticisms ar against business relationship 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 ripening stagnated, the accountancy profession, including its standards, policies and levels of training disclo certain(a)s, had played a role in the start of the crisis, and perhaps had even worsened it.Moreover, Ive alike read that during both crises, the Asian Crisis and Global Crisis in 2008, in able clarity in what was being measured, the wrong things being measured or things being measured inappropriately, lack of standards, inadequate transparentness and poor ethical fill, in short, poor corporate governance is the main breadth and depth of the crises. As a emerging accountant, what bequeath I do after all the doubts and c riticisms against the profession?In my opinion, sufficient clarity on what to measure, measuring things appropriately, following the applicable standards, adequate foil and good ethical conduct are the things that I should carry egress. 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 save understood necessary facts about the account when doing measurement or on examining the reasonableness of the measurement mode used by the management.In addition, in measuring risks like financial risk, I should use a valid and reliable risk measurement technique because the tuition that Ill be giving will be the basis for the managements decision-making. If I have 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 in store(predicate) to the telephoner. In an account pers pective, applicable generally real accounting standards should be used in the accounts of the financials of the company. exacting compliance should be observed so that transactions are properly recorded, summarized, classified and accounted for. Adequate disclosures should in like manner be done. In the auditing perspective, as an auditor, auditing the company should be in accordance with the applicable generally trustworthy auditing standards. The auditor should be independent so that the opinion will be unbiased. I would like to evince that in compliance with the generally accepted auditing standards, the auditor should always take into consideration if the company provided adequate disclosures.Disclosure on significant matters is really important for the users who dont have enough information regarding the matter will be informed. However, I have read in an article that there 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 accountability and ethical awareness require to be instilled in the individuals who deceitfully structure 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 pay is one of the most significant ways, among others, that the user of financial statements can be misled.It is time for regulatory bodies to kick the bucket overly rules-based standards, clearly state the economic objective of each standard, and require firms to disclose the economic motivations for the accounting practices they adopt. While making judgment accountants need to be cautious and prudent. Accounting transactions and other events are sometimes uncertain but in order to be relevant it should be reported in time. Accountants have to make estimates requiring judgment to counter 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 value of firms and that a companys managers and large shareholders do not cheat them out of the value of their investments, and 2) to motivate managers to maximize firm value instead of pursuing personal objectives. I suppose that all of the things I have mentioned are some of th e 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.