Like fashion, there is also what we call trends in accounting. These are the latest topics that most people in the financial district talk about. In addition, these influences affect accounting practices. A study was conducted a few years ago about the top ten accounting trends in the world. Here are some of these trends:
The topic that ranked first on the list of accounting trends is that there should be more guidance to move from GAAP to IFRS. GAAP which stands for Generally accepted accounting standards which is bases in the U.S are likely subject to be altered or changed into international financial reporting standards or the so called IFRS based in Europe. The transition needs to be smooth sailing in order to be successful.
The second on the list is to have more IRS tax audits of businesses. The fear of most business owners is the usual audit threats and audit checks because if they cannot produce a substantial amount of evidence that they have done everything legit and right, their business will be subject for disciplinary action by the government.
The third one is the ever-popular topic of pushing higher taxes to pay for health care reform. Many health concerned groups ad citizens are pushing forth the topic to have higher taxes in order to collect a budget for a better health care reform program. This is done so that the people who are sick and who cannot take care of themselves can have assistance to get back into a fit working condition.
Another topic following the list would be issuing new taxes to support the cap and trade legislation. Nevertheless, what is a cap and trade legislation, and what are the benefits that it could provide that there should be a new tax implemented to suffice to its needs? According to a legislative form, a cap and trade is a government managed or operated program to limit the quantity of emissions consequential to the use of energy. If a cap and trade program is enacted, payments by businesses that go beyond their assigned energy consumption will sum to taxation on doing commerce.
The fifth topic on this list is about people’s objection to AMT reform. So what is the meaning of AMT or what does it stand for? The “alternative minimum tax” or the so-called AMT is a stealth tax scheme that relates when certain taxpayers lessen their usual tax bill by placing an assortment of deductions that are not acceptable for AMT intention.
And the list goes on. Despite the constant changes in the list of trends, however, it can be seen that the topics that are mostly discussed are about the taxes that are current. It also entails taxes that the government must be able to collect to cover expenditures, which are translated into services for the people. Accounting is like a language; it can die and can be reborn. How can accounting die and how can it be reincarnated?
Accounting trends, services and its types die when a new rule or topic is born. There used to be a time when accounting would simply mean the compilation of assets and liabilities to show how much tax you owe the government. Accounting is continuously evolving; it is very different today. Today, accounting means showing and proving taxes, if they are really needed, and to which extent should it be pushed forth.
Nobody likes taxes because it lessens their income and it increases their expenditures. People, however, still comply despite changing trends because these provide the government better funding to give and improve basic services to the people.