Standardization is a process that, although necessary in all the countries that are part of the globalization of markets, is not without obstacles and controversies, since, in the course of its implementation, the economic environments of its application are not taken into account. that is why they would much prefer to harmonize (adapt), since this term is completely opposite to that of standardizing, since it implies the reconciliation of two different points of view, it allows evaluating the conditions of economic systems, allowing those who participate in These are the ones who make the decisions and not those that are imposed on them as standardization does.
Standards: a need or an obligation?
In Colombia, as in other countries of the world, standardization has made it see as an obligation rather than a need for the globalization of accounting markets since, as has been explained in different scenarios, the different countries of the world before the International Accounting Standards (IAS) They spoke totally different languages.
A clear example of this is the Colombian case, which focuses on bookkeeping and accounting support, here there is no room to practice accounting as a profession in all its dimensions; While other countries adopt accounting as the center of the company, which issues secure information for financial statement presentation and decision-making, the accountant here is completely independent.
It must be made clear that adopting is not adapting the first term, it leads accounting to new paths, the second refers to the remodeling of the existing accounting regulation, which, as has been stated on countless occasions, has many more fundamental flaws than so, since said regulation is not made by accounting professionals for accounting professionals who are the ones who really know the needs of the profession, this regulation is made, analyzed, and issued by people who do not even reach the title of accounting assistant, since their professions are opposed to ours.
Today globalization is a phenomenon that plagues contemporary human society, which has several faces and facets, precisely because its budget is the market economy; we should not, we have to participate in the market economy it is not useful to be outside it, it is necessary to be involved in some way, either directly or indirectly, although the difficult thing is not to enter the truly difficult thing is to stay; It should be noted that in today's world there is no general accounting of universal validity, but different accounting systems capable of exchanging information through interfaces (Mantilla, 2001, p.103-140).
For the standardization process to be a complete success, a massive effort to educate general accountants and non-accountants (businessmen, investors, and especially superintendencies, courts and judges) regarding international accounting standards is required; since at this point in the standardization process it is inevitable.
The case for accounting harmonization in the European union
The purpose of the European Union is to achieve a recognized functioning of the common market. In 1987 a commitment was made by the member countries that consisted of eliminating any obstacle that might arise in order not to achieve their goals, since the important thing is to achieve the free movement of people and therefore the freedom of establishments.
Accounting harmonization is a major component in achieving nations' goals, such as removing barriers and coordinating safeguards established in national laws.
The company law directives (The IV Directive - Which regulates the annual accounts; The VII Directive - Relating to the consolidated accounts; and the VIII Directive - Relating to the empowerment of the persons in charge of the legal audit of the annual accounts); that were implemented in these countries of the European Union, have had greater importance in accounting harmonization, since they seek that each member state incorporates in its legislation, common rules regarding education, learning and qualifications of the people in charge of carrying carry out the legal control of the annual accounts.
There was a time of stagnation, so to speak, in the preparation and presentation of accounting information; Thanks to this, changes arose that gave solution to many problems, which allowed us to propose a successful evaluation achieved by the harmonization process.
Starting in 1995, a new strategy for international harmonization is presented, it is said to be the best solution to the problems given in the process of community harmonization.
The European Commission evaluates the different proposals put forward and decides: Exclude large publicly-listed companies from complying with the directives, allowing them to benefit from another regulatory block; Make as few changes to the directives as possible; Improve the functioning of existing bodies at the community level that deal with accounting matters.
In the year two thousand and one (2001) the IASC (today the IASB), generated a restructuring in order to make the IAS (today IFRS), a set of accounting standards of higher quality and more complete to be applied worldwide.
The limit is until the year two thousand five (2005), so that all the companies of the European Union that are listed on the stock exchange, prepare their consolidated accounts in accordance with IAS.
To achieve proper integration of IAS, a mechanism is established to confirm the existing presumption that international standards fully comply with the characteristics of the European environment. Its structure consists of two levels, one technical and the other political.
From what we have seen so far in the European Union, the aim is to harmonize (adapt), rather than standardize (adopt), it is good for countries to protect their legislation or at least evaluate the consequences that the adoption of a standard like this brings with him; bearing in mind that the interests pursued by standardization is the response to the growing need for international capital to increase its profits, decrease risk and exercise greater control over wealth generation processes. (Mejía, 2004, p. 4).
Standardization Vs. Harmonization
Due to the growing economy that has been observed in recent times, through the increase in international capital entities or with international flows of financial resources; The need has been seen to implement standards that facilitate the comparability and consolidation of financial information, increasing the guarantee and control of investments at a low cost. In addition, more reliable, understandable, comparable and relevant information that meets the needs of the different users of the financial statements; these being investors, employees, lenders, suppliers and other commercial creditors, customers, government and government agencies, and the public.
Multinational companies must have adequate accounting information that allows evaluating local and foreign operations, measuring them through the achievement of objectives.
For this, accounting professionals with high levels of academic training who are in ideal conditions to practice their profession in complex and large entities are needed; these are mostly found in industrialized countries with large capitals.
But international accounting standards cannot be forcedly implemented since there are different economic environments "accounting is affected by the environment in which it operates" (Mejía, 2004 p.148); where intrinsic factors, external factors, the accounting system as a whole and the satisfaction of needs play a very important role.
For this reason accounting harmonization is born; that through the regulatory issuance process takes into account the regulatory framework of each nation, providing better communication of information that can be interpreted and understood internationally.
Conclusions
Standardization should not be seen as an obligation but as an opportunity to belong to and become part of the globalization process of markets worldwide, with true accounting professionals, interested in seeking the common good among users of information, to whom they are interested in the transparency, uniformity and veracity of accounting information.
To implement accounting standardization or harmonization; the economic environment must be transformed into the technical and professional one; which entails a high cost in its imposition, which is only justified if the cost-benefit ratio is favorable for the nation that adopts or adapts it according to its need.
Bibliography
- Mantilla Blanco, Samuel Alberto. Adoption of International Accounting standards. In: accounta's magazine legis, No. 6, April - June 2001, pp. 103-140.Mejía Soto, Eutimio. Critical vision of accounting standardization or harmonization. In: International Journal of Accounting and Auditing, No. 20, October - December 2004. Jarne Jarne, Jose Ignacio and Lainez Gadea, Jose. The Accounting harmonization process in the European Union: towards international standards. In: accounta's magazine legis, No. 11, July - September 2002, pp. 11-38.Mejìa Soto, Eutimio. Accounting epistemology: An approach to the study of the international standardization of the accountancy profession. In: Draft article for discussion, August 3, 2004. Mejía Soto, Eutimio. Montes Salazar, Carlos Alberto. Mantilla Galvis, Omar de Jesús.International Accounting. Bogotá: ECOE Ediciones, 2006.
Mejìa Soto, Eutimio. Accounting epistemology: An approach to the study of the international standardization of the accountancy profession. In: Draft article for discussion, August 2004. pp 3 and 8.
Jarne Jarne, Jose Ignacio and Lainez Gadea, Jose. The Accounting harmonization process in the European Union: towards international standards. In: accounta's magazine legis, No. 11, July - September 2002, pp. 11-38.
Mejía Soto, Eutimio. Montes Salazar, Carlos Alberto. Mantilla Galvis, Omar de Jesús. International Accounting. Bogotá ECOE Ediciones, 2006, p 65.
