Move towards common accounting norms intensifies
14 Nov 1997We will insist upon true globalization, vows Abu-Ghazaleh who is commonly acknowledged as ‘Father of Accountancy’ in the Arab world
By Sunil Rao
Sharjah
A regional authority on accountancy has termed as untrue some industry comments that a multilateral pace on common accountancy standards would prove elusive—and, even if agreed upon, would be difficult to implement. “That is just not true,” said Talal Abu-Ghazaleh, Chairman of the firm by the same name.
A regional authority on accountancy has termed as untrue some industry comments that a multilateral pace on common accountancy standards would prove elusive—and, even if agreed upon, would be difficult to implement. “That is just not true,” said Talal Abu-Ghazaleh, Chairman of the firm by the same name.
He pointed out that there is the concerted move for establishing a common multilateral discipline for accountants world wide that is gaining strength. The General Agreement on Tariffs and Trade (GATT) has established a Working Party for Professional Services (WPPS) to set industry standards to define accountancy skills.
UN bodies are also supporting the drive with the United Nations Conference on Trade and Development (UNCTAD) expected to throw its weight behind the campaign at the coming inter-governmental meet in March.
Abu-Ghazaleh, who is commonly acknowledged as the “Father of Accountancy” in the Arab world, is spearheading the campaign to establish true globalization in the profession. “We will adamantly insist upon it, in the word and spirit of the GATT agreement—just as they are (bent upon implementing total free trade) in products and financial services,” he reiterated.
Speaking during a recent stopover in Sharja, Abu-Ghazaleh explained that the battle to establish common industry standards is currently focused on the word multilateral. “They claim it is easier to have bilateral recognition between accountancy professionals— but this runs counter to the spirit of GATT, which is a multilateral agreement.”
He pointed out that even in this, professionals in the western world are wrong, citing the example of the bid by US and UK accountancy bodies to strive for a bilateral relationship —and failing dismally so far.
As he saw it, western professionals had initially tried to corner the world accountancy market for themselves, leaving those in developing countries out in the cold.
“So accountants in developing countries would always be at a disadvantage - as they generally are in any negotiation,” he smiled ruefully.
But, with the matter now in the public domain, western accountants are trying to retard any progress being made towards true globalization — which would treat on par accountants in the developing world with their counterparts in the west.
“Recently in Paris, I pointed out to the UN that it was impossible to foresee any liberalization in trade under GATT for the accountancy professionals since there are no common benchmarks set to determine accountants’ qualifications. The point was well taken, withthe president of the World Federation of Accountants deciding to hold a global meet to set the agenda,” Abu-Ghazaleh said.
“Subsequently, while chairing a UN committee meeting earlier this month in Geneva, I urged revision in the global curriculum for accountants’ qualifications while calling for a benchmark to decide global discipline in accountancy. The curriculum revision should be finalized at the next meeting, scheduled in March.”
He pointed out that under GATT and WTO, globalization of trade would serve all. “Why should accountancy be the exception?” He reiterated that he would be “delighted to be part of the fight”, and would continue to lead the campaign for true globalization and harmonization among accountancy professionals.
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