Discussion of Accounting Articles

ARTICLES

More women with CFO titles, but still far behind men. Journal of Accountancy (2018, January)

Web link: https://www.journalofaccountancy.com/news/2018/jan/women-in-cfo-roles-201818211.html

U.S. finance executives upbeat in wake of tax changes. Journal of Accountancy (2018, March)

Web link: https://www.journalofaccountancy.com/news/2018/mar/us-finance-upbeat-in-wake-of-tax-changes-201818506.html

How Industry 4.0 will change accounting. Journal of Accountancy (2017, September)

Web link: https://www.journalofaccountancy.com/newsletters/2017/sep/industry-4-0-change-accounting.html

Why Are African American Students Still Not Majoring in Accounting? The CPA Journal (2018, January)

Web link: https://www.cpajournal.com/2018/01/08/african-american-students-still-not-majoring-accounting/

Mergers and Acquisitions of Accounting Firms. The CPA Journal (2017, December)

Web link: https://www.cpajournal.com/2017/12/18/mergers-acquisitions-accounting-firms/

“More women with CFO titles, but still far behind men”

Summary

In this article, the author takes up the question of a great importance for the whole financial industry. The fact is that the number of women holding CFO titles is much lower than that of men. According to the author, the situation is becoming better, but the rate is quite slow because the percentage of the women has increased from about 6% to around 12% only over the past decade.

To continue, there are a few reasons for this state of affairs to exist. Firstly, the low number of women in leadership positions can be explained by numerous cases of sexual harassment and assault scandals the female workers face. The second reason is connected with a psychological aspect that manifests itself in various unintentional biases. As a rule, men overestimate their abilities, while women underestimate theirs, which result in the hesitant female employees who are full of scare and doubts. Finally, the third reason resulting in the lack of women is that it is a woman who gives a birth to a child and takes maternity leave. Consequently, a lot of firms and companies do not want to employ women because of this possible scenario.

In the end, the author stipulates that the financial industry can lose a lot of talented leaders if the situation does not face any significant improvement.

Reaction

The article is extremely interesting for me because I do understand the difficult state of women within the financial sphere. It is true that women feel certain problems both to be employed and to get promotions. To prove it, a had a friend of mine who was not given employment because the employers were sure that she would obviously get married and take the maternity leave. That is why they hired male workers instead of her. The most interesting was the fact that she had already had a child.

As for me, the existing problem must be solved. Since we live in the democratic society, we must eliminate any cases of gender discrimination. Choosing a suitable candidate to fill a vacancy on the basis of a candidate’s gender only is a serious mistake. It can be very often that some women are better educated and skilled than their male counterparts are. Thus, it is a complete nonsense to miss such an employee.

“U.S. finance executives upbeat in wake of tax changes”

Summary

The present article delves into the expected tax changes that are considered by U.S. finance specialists as a really positive indicator. The author stipulates that there are a few factors that can support the optimism mentioned above. First of all, it refers to revenue, profit, and staffing. In accordance with the author, these three indicators are considered to show better results the next year compared to their previous performance.

Having regard to the above, the author states that the additional earnings that will be possible due to the tax changes will be effectively used by financial decision-makers to improve the financial state of affairs for their companies and firms in general and for their employees. Thus, a great majority of the firms know how they will distribute extra earnings, with increasing benefits and increasing business expansion spending being the most popular variants.

In the end, the author points out that everything is not so positive as it seems to be because higher inflation rates are expected. So, the financial decision-makers should be prepared for the two possible scenarios.

Reaction

I found the article interesting because it provides us with the positive future outlook concerning our financial health because the prospect of obtaining additional benefits from employers seems to be extremely good.

To continue, I do understand that taxes are obligatory for every state, and no country can function without them. Paying attention to the fact that taxes are paid by individuals and legal bodies, it is not reasonable for a state to impose very high-interest rates. That is why all the states try to restrict the tax increases. On the other hand, when it happens that a state manages to decrease some taxes, the given situation evokes positive feelings only; that is exactly what we have learned from the article under consideration.

To conclude, I am not much afraid of the possible inflation increase. I believe that it is not reasonable to exclude the possibility of the negative course of events. As they say, forewarned is forearmed.

“Why Are African American Students Still Not Majoring in Accounting?”

Summary

The given article describes a significant issue in the modern field of accounting. Its key point is connected with a number of African American students who major in accounting and who work for CPA firms after being graduated from universities.

At the very beginning, the author presents the historical information stating that 1969 saw as the Minority Initiatives Committee was created in order to provide minority accounting students with better educational and employment opportunities. About five decades, however, have not witnessed any improvement in the given sphere, which made the authors to conduct a survey to understand why people choose to major in accounting and why some of them start their careers in fields that are not connected with accounting.

The given survey allowed us to conclude that enjoyment of the introductory accounting course is the main factor that can make students major in accounting. Thus, if CPA firms want to witness more African American students major in accounting, they should cooperate with high schools and universities and provide them with guest speakers who must be both experienced specialists in the given field and African Americans in order to show that the diversity is welcomed.

Reaction

To tell the truth, I chose the present article because it astonished me a lot. Personally, I was surprised by the extremely small number of African American students majoring in accounting. This situation recalled me about the terrible chapters of our history when dark-skinned people were deprived of any rights. Doubtless, the current state of affairs is much different from that of the past, and there is no connection between the racial discrimination and the modern state of affairs in the financial industry, but the question remains, and it must be improved.

To continue, I am almost sure that the steps mentioned in the article can happen to be effective in this situation. When the introductory accounting courses are given by competent and experienced specialists, students become engaged in the field from the very beginning, which results in a strong upside to develop their professional skills. Moreover, if these courses are given by the dark-skinned specialists, African American students will have no doubts that they can achieve some success in the given sphere.

“Mergers and Acquisitions of Accounting Firms”

Summary

This very article presents a quite popular phenomenon in the modern world. The fact is that mergers are extremely popular within the accounting profession because they are obligatory in some cases and provide companies with additional advantages in others if everything is done properly.

To begin with, the authors state that not everything that is called as mergers is actually a merger. Alongside the phenomenon mentioned, there are also such things as acquisitions and hybrid transactions. Roughly speaking, the three terms denote the same situation of combining several firms into one, but each of them has its own peculiarities that distinguish it from the others.

Paying attention to this fact, the authors describe each of the above-mentioned phenomena and stipulate reasons for this or that financial term to be used. Then, they point out pros and cons of all the three phenomena as well as characterize situations and firms that can apply one of these financial scenarios.

Reaction

Since the cases mentioned above are so popular, it is not a surprise that the authors wanted to make clear their general principles both for beginners and for experienced specialists.

For me, the given article was extremely interesting because it described such phenomena as mergers, acquisitions, and hybrid transactions in detail. People who want to become professional specialists within the given sphere must properly understand the differences between them and situations when one of them must be applied.

As I have found from the article, it is a common case when a large firm is merged with a smaller one. That is why the large firms are looking for firms that will correspond to their requirements, while the smaller companies try to meet these requirements because a merger with a large and prestigious firm is a good opportunity for them to develop.

Finally, the article is also extremely useful because it describes the legal bearings of each phenomenon, which cannot but benefit.

“How Industry 4.0 will change accounting”

Summary

The present article delves into possible consequences that can be caused by applying advanced technology in different spheres of modern life. The author states that the next industrial revolution is going to change the way how CPAs will fulfill their functions.

To begin, everybody knows that the late 18th century witnessed the Industrial Revolution. Not everyone, however, knows that it was the first of a few revolutions. Thus, the second revolution happened in the 19th century, while the third one was found in the 1960s. According to the author, the humankind is now on the eve of the fourth revolution that can be called as Industry 4.0.

One of the striking features of this problem is that the new industry will result in changed functions of CPAs and their need to adjust to new working conditions. Thus, every employee of the accounting industry must be prepared for the future challenges Industry 4.0 is going to evoke.

Reaction

I believe that the present article is a must-read for every young employee working within the field of accounting. It is not a surprise that the existing technology has changed our lives significantly, and it is undeniable that people must be ready to meet all the requirements that can arise.

Of course, the article does not present strict regulations of what CPAs should learn and what they should do, but it provides us with the information of what we should expect for. I am sure that it will be a serious task for the CPAs to analyze the risks that are connected with applying the new technology and new machines. In addition, the CPAs will help companies understand new ways of functioning and profit earning.

To draw the conclusion, I can say that the upcoming revolution will obviously change the field of accounting, and the given article will help the CPAs be prepared for these changes in order to succeed under the new working conditions.

References

Amato, N. (2018, March 8). U.S. finance executives upbeat in wake of tax changes. Journal of Accountancy. Retrieved March 30, 2018, from https://www.journalofaccountancy.com/news/2018/mar/us-finance-upbeat-in-wake-of-tax-changes-201818506.html

Hart, L. (2017, September 25). How Industry 4.0 will change accounting. Journal of Accountancy. Retrieved March 30, 2018, from https://www.journalofaccountancy.com/newsletters/2017/sep/industry-4-0-change-accounting.html

Ovaska-Few, S. (2018, January 23). More women with CFO titles, but still far behind men. Journal of Accountancy. Retrieved March 30, 2018, from https://www.journalofaccountancy.com/news/2018/jan/women-in-cfo-roles-201818211.html

Sinkin, J., & Putney, T. (2017, December). Mergers and Acquisitions of Accounting Firms. The CPA Journal. Retrieved March 30, 2018, from https://www.cpajournal.com/2017/12/18/mergers-acquisitions-accounting-firms/

Violette, G., & Cain, C. L. (2018, January). Why Are African American Students Still Not Majoring in Accounting? The CPA Journal. Retrieved March 30, 2018, from https://www.cpajournal.com/2018/01/08/african-american-students-still-not-majoring-accounting/

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