Arab world urged to develop its own accounting standards
25 Nov 1995THERE is an urgentneed for the Arab world to develop its own accounting standards, to assure international investors that financial statements will be presented in a way that they can understand.
Talal Abu-Ghazaleh, founder-chairman of the Arab Society for Certified Accountants (ASCA), and of the accounting firm of Talal Abu-Ghazaleh International (Tagi), told this paper in Dubai yesterday that the Arab world has a long way to go so far as the development of accounting standards are concerned.
“As developing countries, we should realise that development depends to a great degree on the development of accounting standards,” said Cairo-based Abu-Ghazaleh.
“An accounting standard is not a luxury, it is extremely important for the national business community and also for the international community in the global market place.
Abu-Ghazaleh said he was not satisfied with the pace of development of adopting an Aran accounting standard. “Much more efforts need to be devoted towards adoption of standards,” he added.
He called for the setting up of a joint Arab standard setting body, to harmonise norms on the basis of internationally-accepted standards. There was a need to adapt international standards.
Americans, for instance, added international standards to their national content to suit their legal, social and religious needs. Such ‘environmental content’ was needed in the new Arab standards as well, he remarked.
Abu-Ghazaleh was in Dubai for a meeting of Tagi’s regional partners, mid also to prepare for the three-day International Accounting Standards conference and workshop to be held at the Dubai Inter-Continental Hotel from November 27.
The conference will be addressed, among others, by Sir Bryan Carsberg, secretary-general, International Accounting Standards Committee (IASC); Liesel Knorr, technical direct or of IASC; Dr. Kamal Gupta, technical director of Institute of Chartered Accountants of India; and Abbas Ali Mirza, director of professional development, Tagi.
The conference is being supported by ASCA. Abu-Ghazaleh pointed out that Asca has been conducting examinations all over the Arab world since 1990; as many as 76 candidates have so far graduated as Arab Certified Public Accountants (ACPAs), and about 1,000 students are registered for the course.
Tagi, along with the Big Six (accounting firms of the world), has been spearheading a movement to facilitate the adoption of international standards, added Mirza.
