How Big Data Affect The Accountancy Profession Essay

1129 Words Dec 1st, 2016 5 Pages
Beyond the different software companies used for Big Data Analytics, there are other ways that Big Data affect the accountancy profession. A major effect on the field of accounting is the law that takes place while the processes are amended to adapt to the current technology age. Overseers such as: FASB and the SEC have certain laws and regulations that alter the way accountants perform the assigned tasks required by their profession. In addition to adding unprecedented rules, FASB and the SEC may make accounting grueling, especially for newcomers to the field, concurrent to the modern regulations. One of the many amended/added rules to accounting was the alteration of leases on the balance sheet. According to a blog by Jason Bramwell on Accountingweb, the new rule on leases requires “companies to report most leases on their balance sheets and puts an end to the off-balance-sheet reporting of assets and liabilities related to the rights and obligations created by operating leases” (Bramwell, 2016). Although this change to the rule is general, it affects Big Data and Analytics. While firms and manufacturing companies begin to adapt to the change, this effects the thousands of leases already on these off-balance sheet reporting the companies have previously used. Furthermore, it will take enormous effort to meticulously collect the data on the thousands of leases that were once footnoted; since the law requires the lease to be posted on the balance sheet, a plethora of public…

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