Let us examine some of these trends, which are likely to impact on the function of the accounting profession. Traditionally, the financial statements show the tangible asset of the enterprise, therefore you would see the raw material, work in process, the finished goods, machinery and equipment, land and buildings, etc. However, the global economy has become information oriented and consequently many of our present day enterprises are run on intangible assets such as research and development, capacity of innovation, human resources, information and know how, brand equity, relations with customers, vendors, employees, etc. It is not being suggested that we take these intangible assets and turn them into debits and credits, but the accountant must be cognizant of the importance of these intangible assets to the business as ignoring them in the accounting model could be a fatal mistake. Traditionally, accountants provide periodic information.
Accountants currently produce statements, which are considered to be a general nature.
Invariably the information is not exactly that which the investor needs or the creditor needs, etc. The ability to summarize the complex activities of the enterprise into a balance sheet and an income statement has served the profession very well over the years. Now, however, we are increasingly being required to provide information for more specialist interest groups. It appears that since the accountants do not seem to have the competencies to provide critical information to interest groups, certain intermediaries have emerged. Therefore, while creditors and investors are receiving the additional information that hey are demanding, the piece of information that the accountant is preparing remains flat.