Call for Greater Role of Region in Accounting Standards
30 May 2005By C.L. Jose, Staff Reporter
Talal Abu-Ghazaleh, President of Arab Society of Certified Accountants, has sought greater participation of the Arab region in the governance of the International Accounting Standards Board.
Abu-Ghazaleh, who is also the Chairman and CEO, Talal Abu-Ghazaleh Organization, triggered a controversy at the World Accounting Summit yesterday while making the inaugural statement at the summit which was opened by Obaid Humaid Al Tayer, President of Dubai Chamber of Commerce and Industry.
"The accounting industry is the backbone of business, and greater cooperation among accounting professionals plays an important part in the continued growth of Dubai and the success of the region," said Al Tayer. DCCI set up the Auditors Business Group in September 2003, an officially recognized forum aimed at providing a single, unified voice for accounting professionals in Dubai.
Abu-Ghazaleh argued for a better geographical representation in the governance of IASB. "The omission of great areas such as Africa and South America is really not acceptable. If countries are prepared to enforce by law the adoption of international standards, then surely they should have some right to be represented at the highest level," he noted.
Abu-Ghazaleh pointed out that the last few years have seen the standing of the accounting profession in the public eye at a very low level. "Names such as Enron, WorldCom, Parmalat, etc. are seen as examples of the failure of our profession and it has generated demands for more and more regulation of the accounting profession," he said.
He went on to argue that the accounting profession should be open to more regulation, going beyond the concept of self-regulation.
Citing the example of the US Public Company Accounting Oversight Board (PCAOB), which is a private sector non-profit corporation created by the Sarbanes-Oxley Act of 2002, Abu-Ghazaleh said this board itself is overseen by the Securities Exchange Commission.
His statement that accountancy professionals are traders in services albeit of a professional nature triggered the biggest controversy, which invited strong objection from Abdulaziz Rasheed Ebrahim Al Rasheed, Chairman of the board, GCC Accounting and Auditing Organization, KSA, as well as Graham Ward, President International Federation of Accountants (IFAC), United States.
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