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It is felt that accounting education, as it is structured currently, is outdated and in need of modification to meet the changing expectations. Three broad reasons have been identified for the lack of confidence about its future.

KOLKATA, Jan. 21

WILL accounting education survive in the future? The question seems to be increasingly troubling various international accounting organisations. In a recent instance in India, it has been obliquely referred to by at least one national-level body, the Institute of Cost and Works Accountants of India (ICWAI).

ICWAI's 43rd national convention, held in the city last week, discussed, inter alia, the issue of continuing professional education for management accountants. Indirect reference to the theme in question came through a tract titled `Charting the course through a perilous future'.

It sought to point out that accounting education needed to change in order to maintain its relevance, retain its status within the profession and add value to students. The number and quality of students majoring in accounting were falling. The meet also received feedback that an accounting degree was not perceived to hold the same value as it once did, especially when compared to "certain other business degrees.''

It was also felt that accounting education, as it was structured currently, was outdated and in need of modification to meet the changing expectations.

It was already evident that accounting practice had changed to meet new market-based demands - B2B, e-commerce, global competition, etc. These, as well as technology, had outpaced accounting education. Consequently, there was a gap between what business needed from such education and what was actually being received.

The suggestion has elicited sharp reactions from professional bodies such as ICWAI. According to Mr Kunal Banerjee, Vice-President of ICWAI, accounting education was still highly relevant. However, he agreed that there was a case for upgrading standards on several counts.

Three broad reasons had been identified for the lack of confidence. One, accounting technology was now quite low-cost; this rendered information preparation and dissemination an inexpensive proposition.

Two, globalisation had impacted business methods. There was faster transportation, which, coupled with instant information, made the globe a single, inter-connected market- place.

Three, power was concentrated in large investors, including big pension and mutual funds. Such institutions raised the competitive bar very high. All this had helped shift the corporate balance of power.

The three "change-drivers'' have had two major impacts on business. First, these had eliminated the old accounting model that information and knowledge were expensive.

Second, they had increased competition among all kinds of organisations.

So, what could be the way out? It was stated at the convention that if action was not taken quickly, "accounting education will see decreasing budgets and faculty positions - it could become a service function within business schools''.

Constant attention, it was advised, should be given to improve course content and curricula. Also, skill development among students and faculty development were two very critical areas.

It was further recommended that the existing memorisation and prepare-for-certification system be replaced.

The range of professional services should be expanded to include, say, personal financial planning and fraud investigation. Lastly, there should be a new strategic direction for educators and students alike.

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