Are Classifications of Accounting Outmoded?

Analysis Case 2-1: Are Classifications of Accounting Outmoded?
In the past decades the whole world has been experiencing an era of evolution towards globalization that has caused several changes, mostly positive, in countries all over the planet. Countries that were once drowned in poverty or under strong regimes, are now powerful competitors in the worldwide market, especially thanks to a change of mentality, ideals, and of course, policies that drove the country and therefore the economy to globalization. Shifts are neither easy nor painless, they take a lot of dedication, hard work, and require adaptation, not only from the leaders of the country, but also from the population, who have the potential of being greatly benefit if they also open their minds to new ideas, strive for self-improvement, and in a way, become entrepreneurs. We will hardly find a better example than the ones we have seen in both India and China, countries that not a while ago were everything but competitive, but after numerous changes have become world powers, up to the point that both have become the fastest growing markets in the world. To achieve positive results not only people needs to change, also government regulations, policies, models, etc, are just of the few other areas in which evolution is required. One of the most important areas is accounting, and how governments will regulate financial reports, disclosure requirements, etc, can be determinative in the decision on whether or not a country is suitable for companies to do business. After reading David Cairns’s thoughts on international accounting, there we several phrases that called my attention and made me belief that his comments were strong and absolutely relevant. When dealing with different countries investors, managers, leaders, etc, need to be aware of the cultural differences and they have open their mind to accommodate to those trends, issues and beliefs of the habitants of the other country. That is why