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Brainstorm

Sunday, January 25th, 2009

I think the most important thing to learn about this crisis is how it will directly affect us and how we, as students and young professionals, can adjust to and alleviate the effects of this crisis. The situation is so far reaching that obviously nearly all aspects of our lives have been at least marginally affected, but I don’t know if we understand what international implications have and may continue to occur. I know that for me, the field of accounting is still considered a strong position with relatively high hiring levels, but there have been many changes in recent years. Since 2002, FASB has been working to converge American and International accounting standards in order to provide better comparability between multinational companies. In 2008, the SEC announced that all companies would be reporting under IFRS by 2014; this is contrast to FASB’s original plan to simply reduce differences between US GAAP and IFRS. In the age of globalization the use of completely different standards among countries and companies which to business on a daily basis seems inefficient and ineffective.  International markets will run more smoothly if all the operators can understand and effectively analyze each other’s financial statements and reports. It would be interesting to see what steps countries take to increase comparability and to differentiate themselves in order to promote their own economies. This crisis could have the effect of countries becoming more open to achieving one global economy or pulling back in order to be more self-sufficient and avoid dependence on unstable markets. How will companies react in order to better predict financial instability within certain markets and prevent future financial collapses? Will using the crisis as a catalyst for change bring about improvements, or will these changes prove ineffective and pointless in aiding future financial circumstances?