The paper "Making Sustainable Change Happen" is a brilliant example of coursework on finance and accounting. Thesis Statement The finance and accounting field is regulated by the Financial Accounting and Standards Board (FASB), International Financial Reporting Standards (IFRS), and the International Accounting Standards Board (IASB) (Chorafas, 2000). Change is inevitable in such a field because of the lack of autonomous regulation. It might take the form of system overhaul or modification of current systems, but no standard is completely independent of other standards. Making Sustainable Change Happen In the contemporary world, financial matters are shifting to more complex systems.
All organizations that are for-profit operate a financial reporting system governed by a set of internal controls. Accounting standards ought to adjust to accommodate the modern-day sophisticated financial reporting systems. The accounting field is limited by complexity, uncertainty, and volatility. Managers should acknowledge the need for making sustainable changes throughout all business operations to ensure that financial reporting meets the desired results. Adopting Change within the Organization Unless the attitudes of people within the organization are willing to accept change, it may prove difficult to make sustainable change.
Adopting change begins with appreciating the attitude that people come first, then the money, then the things desired (achievement of objectives). Financial experts argue that managers focus on prioritization. In addition, business operations revolve around managing a budget, implementing processes, negotiating commitments, and documentation. What matters most is that human labor is the primary resource for the organization. Managers should strive to achieve the following to make a sustainable change: Prioritize Commitments Change commences with classifying business operations on scales of importance and urgency. It is according to the norm to get overwhelmed by numerous activities.
For instance, accounting standards classify different financial operations in different standards to indicate their priority, relevance, and importance. Put People First It may prove difficult to implement change if people are not motivated to accept the change. Managers ought to consider the interests of the people making up the human resource team. The change should not be biased or geared towards promoting the interest of one party to the expense of another. The change should be based on the interests of the concerned parties for it to be sustainable. Train the Workforce Managers ought to instill the technical know-how for adopting change.
Sustainable change can be achieved when all employees have the necessary expertise to handle the new requirements or adjustments to the system. For instance, accounting standards may not be of assistance during financial reporting if the human person in the accounting department is not equipped with the technical know-how of handling the standards. Ensure that Change is Sustainable Change might be for the short-term or long-term. However, it should be assessed to indicate whether it achieves the intended purpose.
Change is considered sustainable if it achieves the main objectives. Managers should adopt the following ‘ tools’ to ensure that change is sustainable: Internal Controls Internal controls can be used to indicate how the change relates to the existing systems. In addition, controls ensure that the change does not tamper with the operations of existing systems. For example, a change in IAS 1: Presentation of Financial Systems should not tamper with any other IAS. That way, the change would be considered sustainable. Audit The audit process refers to regular checks and reviews on the change.
Auditing the change would ensure that it presents the general interests of the concerned parties. Such a process is the best possible ‘ tool’ for making sustainable change occur.