Standardization of Accounting Regulations Essay

Standardization of Accounting Regulations - Essay Example As a result of this, the effect of standardization of accounting must be regarded beyond capital market settings; therefore, these effects should also be examined on other areas, including flows of information, policies and people. Although the way standardization of accounting affects accounting information more especially on the internet is rather vague, these transfers are relatively unstructured and unregulated in current accounting practices. "However, technologies in accounting are legitimizing certain sets of information, and give attention to certain voices in the quest for global attention." (Graham & Neu, 2003) Such a body is the Organization for Economic Co-operation and Development (OECD), it assist the international governments handle tackle the economic, social, and governance challenges of a global economy. They scrutinize government and help examine such performance indicators as laundering, transportation, and pension. Also, they help to review process performance measurements both to observe and to direct government performance. The funding of internet information is provided largely by the U.S Department of Defense in the 1970s and 1980s, for the purpose of developing advance communications networks linking the U.S. militaries and universities, this is shaped by standardized accounting in the development of informational technical infrastructure. "Some other agencies that have helped fund Internet communication, like (The National Science Foundation and the Advanced Research Projects Agency) have also relied on accounting technologies to balance technical and economic goals." (Graham & Neu, 2003) Flow of policy Standardization of accounting has also helped to regulate foreign policies; accounting practices are most times imposed on distant sites. By and through the terms of lending conditionality, the receiving counties are coerced, albeit co-operatively, to adopt and accept mainstream neo-liberal financial policies. This scenario is evident in most third world where they are made to abide by the conditions of the lending countries. And I such cases financial assistance is given by IMF. Accounting technologies make visible certain problems, offer certain solutions, and make these solutions operational. In most cases, practices from international sources are thus mixed with resident financial practices of the country in concern so that the problem could be solved. Ultimately, this flow of policies will produced economic survival. Flow of people The standardization of Accounting has helped to keep track of people as they move from area to area. Movement of people are monitored and analyzed as they cross borders, and accounting is deemed to be a major player in the immigration policies and practices of many countries. For instance, an accounting system which manages loans to immigrants is in operation Canada. Citizenship and Immigration Canada (CIC) makes loans to immigrants in order to assist them in various ways, and such includes transportation, proving admissibility, and general assistance (Government of Canada, 2003, as cited in Graham & Neu, 2003). Thus, the movement of people into Canada are enabled and enhanced by accounting technologies. More also, these people are monito