Answer
Some major challenges facing the accounting profession relate to the following items:
• Non-financial measurement – how to report significant key performance measurements such as customer satisfaction indexes, backlog information and rejection rates on goods purchased.
• Forward-looking information – how to report more future oriented information.
• Soft assets – how to report on intangible assets, such as market know-how, market dominance, and well-trained employees.
• Timeliness – how to report more real-time information.
Work Step by Step
Non-financial measurement and forward-looking information is normally based on financial forecast, and one of the downsides of financial forecasting is inaccuracy, especially where there is unforeseen market fluctuations.
