Changing Times and Challenges to the CPA Profession

Vincent J. Love, CPA/CFF, CFE

Is the CPA profession declining in relevance as business and industry change dramatically? If so, what needs to be done to keep the profession relevant long into the future? Accounting and financial reporting as practiced today were developed during the industrial age, and changed somewhat to recognize technology that allowed the determination of more precise values, and to account for new transactions nurtured by the increasing use of continually improving technology. Historical cost is fading into the past, and current value accounting in current financial reporting is closer to true value than ever before. But are these changes to financial reporting enough, or even relevant in today's business world? Intangible assets now account for 84% of the total value of S&P 500 companies, according to intellectual property merchant bank Ocean Tomo (2015 Intangible Asset Market Value Study). Sustainability reporting and other required or voluntarily reported data about a business enterprise's behavior influence the public's view of the enterprise and its viability as an investment or business counterparty in a rapidly changing environment. Add to this mix the advent of cryptocurrencies and blockchain as a medium of exchange and accounting methodology. How will all of this change the profession? What does the profession need to do to meet these challenges?