Reaction Paper- Asian and Global Crisis

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Reaction Paper
Asian and Global Crisis

During the Asian and Global Crisis many of the criticisms are against accounting and accountants. In my further readings, I’ve read that during the Asian Crisis in 1997, where affected countries suffered severe setbacks in their economies and where development stagnated, the accountancy profession, including its standards, policies and levels of information disclosures, had played a role in the start of the crisis, and perhaps had even worsened it. Moreover, I’ve also read that during both crises, the Asian Crisis and Global Crisis in 2008, insufficient clarity in what was being measured, the wrong things being measured or things being measured inappropriately, lack of standards, inadequate transparency and poor ethical conduct, in short, poor corporate governance is the main breadth and depth of the crises.

As a future accountant, what will I do after all the doubts and criticisms against the profession? In my opinion, sufficient clarity on what to measure, measuring things appropriately, following the applicable standards, adequate transparency and good ethical conduct are the things that I should carry out.

It should be clarified in the accountant on what is the thing that he/she should measure. If I’m the accountant I should be knowledgeable on the nature and I should have understood necessary facts about the account when doing measurement or on examining the reasonableness of the measurement method used by the management. In addition, in measuring risks like financial risk, I should use a valid and reliable risk measurement technique because the information that I’ll be giving will be the basis for the management’s decision-making. If I have measured the things incorrectly or a wrong technique has been used, it could be misleading to the decision-making of the management and may cause chaos in the future to the company.

In an accounting perspective, applicable generally accepted accounting standards...
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