Abstract
Financial accounting is undergoing major changes in the EU and worldwide. Great efforts are placed on adoption of high quality accounting standards for listed companies, public sector organizations as well as small and medium business entities. Being a member of the EU Lithuania is in compliance with the EU incentives in de jure accounting harmonization; however de facto situation in Lithuania is not adequately assessed. One of accounting harmonization related questions is whether Lithuanian higher education provides labor market with market-needs oriented accounting professionals.The objective of this article is to assess if Lithuanian higher education programs in accounting field is in compliance with EU accounting harmonization outcomes. We analyze if graduates of Accounting programs from Lithuanian Higher Education Institutions are trained to work with different sets of accounting standards—International Financial Reporting Standards (IFRS) and Public Sector Accounting Standards that were adopted in Lithuania as a part of accounting harmonization incentives. To conduct an assessment of research methods by case analysis, comparative analysis has been deployed. We assessed programs goals, learning outcomes and course curriculum of Professional Bachelor, Bachelor and Master level programs in Lithuanian universities and colleges.Results of the research revealed that de jure accounting harmonization is reflected in Lithuanian higher education Accounting programs. Accounting for listed companies (required to use International Financial Reporting Standards) is given little importance in Lithuanian Accounting programs. According to the analysis of the learning outcomes, graduates of the Accounting programs in Lithuania have a broad profile, but would not be able to work independently with International Financial Reporting Standards. On the other hand, even if regulation of public sector accounting was enforced later, it is included in number of analyzed programs. A number of Professional Bachelor’s programs even offer specialization in this area. Results of the research allow us to conclude that colleges have their niche in preparing accounting specialist for local labor market and their positioning is relatively strong, concerning public sector accounting. Meanwhile first and second level universities’ programs could be strengthened toward international accounting to provide labor market with professionals in this area.
Highlights
The aim of accounting education is to achieve high quality of learning outcomes
As scope and extent of teaching International Financial Reporting standards (IFRS) and Public Sector Financial accounting and Reporting Standards (PSFARS) in Lithuania is unclear, the objective of this article is to assess if Lithuanian higher education programs in the field of accounting are in compliance with EU accounting harmonization outcomes
We analyze if graduates of accounting programs of Lithuanian higher education institutions are trained to work with different sets of accounting standards—International Financial Reporting Standards (IFRS) for listed companies and Public Sector Financial accounting and Reporting Standards (PSFARS) for public sector companies that were adopted in Lithuania as a part of accounting harmonization incentives
Summary
The aim of accounting education is to achieve high quality of learning outcomes. These learning outcomes have to ensure that a student has both specific and generic knowledge and skills which are in compliance with the needs of labor market. Quality of accounting education is closely linked with study process and with constant consideration of external factors. One of the external factors, which undoubtedly have a great influence on accounting profession, is accounting harmonization and related changes in regulation of financial accounting. It involved efforts to create a single set of accounting regulation for small and medium companies as well as public sector organizations, convergence with the US GAAP, and other incentives. Most of the EU countries had started accounting harmonization process with similar experience and knowledge, they all faced situation where just a few people (mostly professionals form Big 4 audit companies) knew and understood the new accounting requirements
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