Is it possible in our environment to speak of accounting harmonization? What are the drawbacks to developing this process? Are we facing adoption or harmonization problems?
In order to answer all these questions, it is necessary to take into account some processes as a result of the globalization and internationalization of the economies, which are becoming determining factors in the schemes of: international standardization and harmonization.
It could be said that the current processes of standardization and harmonization are explained from theoretical positions linked to globalization, which originally are linked to the dynamics of large international corporations.
In fact, we can say that harmonization is nothing more than the result of large international corporations, which seek to guide their processes towards achieving objectives that have more to do with their profits and economic savings than with the general community interests of the countries and as usual, this trend is postulated more under the pressure exerted by large corporations.
Without a doubt, the issue is more complex if one looks at the existence of the economic and financial differences that characterize the international system.
These differences are especially notable in developing countries, it is clear that the claim of large international corporations outline these models towards the achievement and consolidation of their economic interests, of course harmonization refers to the exercise of a power that has scope National and international; as such, its content must establish a binding force of the States, so that in a community way they decide the achievement of objectives: economic, legal, social, accounting and that must be mediated by legitimacy, integration, cooperation, coordination, as essential requirements for effective community development.
Of course, harmonization must go a long way, overcoming the contradictions that arise between the different micro and macroeconomic models of each country.
This document explains the reasons why the search for accounting harmonization has occurred as a consequence of the aforementioned phenomena and the need to find a universal language in the economies of all countries.
Accounting harmonization
Soon a universal language?
The search for accounting harmonization is a clear response to the need of the economic world to share a language that facilitates the communication of international markets, which are well done through human thought.
For this reason, to satisfy this need brought about by globalization processes, which evidently surprised us with the implementation of great technological advances in communication systems, a common standard is required, which should be synonymous with acceptance., but it is clear that it is not relatively easy, because although accounting is a universal discipline, accounting needs basically respond to the economic and social policies of each country, where monetary problems predominate and chain social requirements of population.
Accounting information must be identifiable, and its main goal is to present sufficient clarity to its users so that the optimization of the results that are presented is achieved, no international market wants to be left behind in obtaining and implementing systems that allow stay in competition.
It is then when the solution that international organizations find comes and they also propose to bring accounting to the field of globalization, and with this, favor economies in not leaving them behind in the modernization process that the world faces in our times, and there is talk of "International Accounting Standards", where then comes the great conflict between scholars of our discipline in Colombia,
They find it a good subject for analysis, and it is the fact of wanting to establish rules equal to those of other countries in which without a doubt we find ourselves in a monstrous difference in conditions, in various fields, but it is also clear that there are realities indisputable, as is the essence of the norm, trying as much as possible to find reasonable uniformity in these, with pragmatic criteria, it is almost impossible to maintain that, worldwide, all countries agree to adhere to a single model, with different political realities and constitutional frameworks, converts an idea of this type into almost utopian.
Well, this issue hit us head-on, we are protagonists in the opinion and discussion about it, since accounting is the one involved, and we started the path by analyzing that this process is only interested in large economies, multinationals and other economic entities of great importance and more unaware of the social problems and the outrages on the small market agents that would have occurred by establishing other aspects that also respond to globalization such as the FTAA and Free trade between monsters of production and small producing countries with techniques at their almost rudimentary level.
We are really facing an imposition of the United States that took advantage of the need for easy exchange of information to be them, without any participation from those who would also adapt and suffer these changes, we would not deny at any time that correcting the communication needs in a matter of the tools that are the Financial Statements and others of their derivatives;
In all these fields, the intervention of world politics in monopolizing all areas that affect them to a great extent is clearly appreciated, and obviously accounting has to interest them since its role is to support the preparation of information aimed at determining the magnitude of the wealth created in the productive processes and in establishing the allocation of such result among the various agents participating in the distribution process.
Our inclinations respond to the academic belief in Colombia that this theme that the so-called parameters, norms or standards have become accustomed to Creole versions of everything and to write in our own words the different elements that make up the problems.
In Colombia there is no adequate identification of the concept of norms and standards. For this, even less serious translations are used that create more confusion. Identifying norms with standards may be true in legal, regulatory circles, but it is not true in interdisciplinary and systemic environments.
Today, in a globalized economy, a culture of standardization prevails, against which local regulatory regimes yield not only in terms of accounting, auditing and professional accounting, but in the entire wide range of businesses (goods and services)..
The problem, in Colombia, implies, therefore, a hard decision for the national government, on the one hand it can continue to play the normative, which is the easy path and that it imposes by force of law, but which is ineffective in the practice, or you will have to learn to play standardization.
These inflexible positions on a subject of so much impact seem to ignore fundamental aspects such as the particularities of our environment, practical convenience, the characteristics of business, the size of the economy, and various other factors that would at least recommend a judicious process beforehand. to make any affirmative decision of resounding change.
The need for rapid harmonization is also reinforced by government sectors due to the commitments that the national government has made on the one hand with multilateral banks and on the other with the World Trade Organization, the WTO, which in the first case, according to them, the duty to initiate an immediate adoption process as part of the financing conditions imposed by these organizations and, as regards the WTO, due to the obligation contracted with that organism with which, it is stated "the Colombian State has the pledge."
These explanations sound disrespectful with the condition of independence that underpins the work of the Public Accountant who cannot be subject to any influence, least of all on issues as delicate as that of accounting harmonization that in fact affect so many interests, understood, furthermore, that such principles must arise from professional and academic levels and not from state agencies.
Such an agreement cannot compel the accounting profession to follow provisions that lack the due process of investigation, study and analysis that are de rigueur for adequate socialization, consequent appropriation and proper implementation.
The Public Accounting is a discipline, to enclose its philosophy under a single doctrine as it is called international norms, it helps the users of the information, but it appreciably affects the investigation and therefore the academy. It is logical that if we are global professionals and aspire to enter the international exchanges we should speak and understand the technical and communication language used there.
For now, it can be argued that the accounting principles of general acceptance, bad or good updated or outdated, the important thing is that they be faithfully followed in such a way that they contribute effectively to the purposes of achieving transparency in the information. Recent global scandals clearly validate this assessment.
Recently, a new element has emerged, which refers to the cost that companies would have to incur when accessing the international capital market and, therefore, should comply with the corresponding regulations; The issue of normalization in the reality of our economy, we find that companies, which at least today, or in the immediate future can reach the international markets with some possibilities, could be counted on the fingers of the hand.
The deadline to adopt has been set to press badly, the immediate adoption of international standards. As the date approached and the purpose was not achieved, it was observed that the obvious form of pressure was also attenuated.
Therefore, it is not possible to continue with the harmful practice of adapting rules created for environments different from ours, since experiences have shown us that this only creates a system without bases, without foundations that ends up failing.
At the level of the profession, the internal problem is serious. If we observe the maximum degree of unconcern, its main objective is shown by the Central Board of Accountants: “A state entity that instead of responding to the common interests of the profession and those involved in it (businessmen… society), it does so to defend a model of the profession (still rooted in public faith).
Professor Harold Álvarez who, while aware of the urgency of the country to make a decision, makes special emphasis that this should be a good decision that should not be taken lightly, since well-being is at stake Common, according to him, "this decision must be made based on a deep and careful study of the normative content, as well as the economic, financial, social and political aspects that such a decision implies." This position, although conservative, is very sensible.
The promoters of adoption are promoting the idea of dollarization, whose mission is to provide the conditions for the strongest economies to prevail "regardless of whether the rates of unemployment, poverty-misery, illiteracy, etc., are increasing, with the argument that the liberation of the markets will bring the world progress ”.
With the above we can highlight the fact that globalization would not benefit us, since we do not have the necessary characteristics to compete in such a way that we can obtain some benefit.
Regarding the issue of globalization, Harold Álvarez believes: “We do not intend to isolate ourselves from the global globalization process, but rather enter into it without the irrational efforts that have already meant the loss of a good part of the national wealth of our country, and others countries, but the slow, planned entry, based on respectful harmonizing processes and legal-economic adaptation, that prepare the circumstances and make it possible for our companies to remain in competitive and convenient conditions for the national interest ”.
In other words, harmonization would allow us to enter into a reconciliation process in which our idiosyncrasy is recognized in order to avoid economic, accounting and social destabilization. The problem is that there is no time for this process, which for us is regrettable.
There are some world organizations specialized in harmonizing the situation around the world, some are public in nature such as the United Nations (UN) and the Organization for Economic Cooperation and Development (OECD); and others of a professional nature such as the International Federation of Accountants (IFAC) and the International Accounting Standards Board (IASB).
Great interests are moving around world Harmonization, the media dedicate great space to this topic, political writers, sociologists, distinguished accountants have pigeonholed in discussing it, but the great truth is that Harmonization is inescapable, a test of this is that the deadline for the adoption of international standards was met on January 1, 2005 and it was not possible since the economic differences and accounting environment that exists in each country, the harmonization process tends to be long and cautious to achieve not be so painful.
Although this harmonization is tediously slow, it is the right decision to counter the adoption that was intransigent and impossible to impose in our country.
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