Harmonization and standardization of the accounting structure

Under the "need" to implement a set of accounting practices "that conform to international uses and rules", which strengthen the economic-financial information of the entities-companies, giving confidence and transparency to the public investment markets; a global process of “harmonization” or “standardization” is advanced (exclusive approaches); which has led different sectors worldwide to propose the development of studies of the social, economic, legal, accounting and financial impact, which would represent the abandonment of national accounting practices and the “adoption” or “adaptation” of international standards of accounting information management.

Key words: financial performance, international financial architecture, harmonization, standardization and accounting system.

1. Justification for standardization.

The homogenization of language in the presentation of financial information is a central objective of the New International Financial Architecture (NAFI), understood as "the set of agreements to promote the efficiency and stability of the international financial system", where the commitment of the international community to strengthen international architecture by focusing on five main areas:

1. More transparency and promotion of standards and best practices Strengthening of the country's policies, financial systems and institutional foundations Strengthening of policies to mitigate the social costs of the crisis Involvement of the private sector in crisis prevention and resolution, and Strengthening and reform of international forums.

Accounting, being included as one of the basic standards of this architecture, must develop a framework that allows recognizing, measuring, valuing, presenting and revealing the information required by today's business world, fundamentally the modality of public securities markets., which demand more trust and transparency every day.

The financial information under the criteria of international regulations aims to:

• Offer relevant, understandable, reliable, and comparable information to users of financial statements (qualitative characteristics of the RUs-paragraphs 24 to 46 of the IASB Conceptual Framework)and the orientation to transparent information; These users can be internal or external - universal user and these are synthesized in seven groups: Investors, employees, lenders, suppliers, clients, government and the public, which present specific information needs (Users and information needs-paragraphs 9 to 11 of the IASB Conceptual Framework). Thus, the function of informing international regulations is in accordance with the “Utility Paradigm”, in a restricted sense (privileging investors, mainly from the public stock market)

Accounting standardization is a process not without obstacles and controversies, since the implementation of a standard does not take place in a neutral and aseptic process; For standardization, fulfilling its role in different countries must complement the general characteristics of flexibility and uniformity, rather than create a dilemma between them; just as to fulfill its purpose in the different environments in which it is implemented, it must have the particular characteristics of each one, as formulated by Tua (1983, p, 631-636), (1995, p. 103 -106) in the need to have the features of the environment, in a process of construction of standards according to a deductive logical itinerary: features of the environment, features of the system and instrumental hypotheses, defined as principles from an epistemic-teleological conception.

In this sense (Franco, 1996, p. 49) states “An information system that does not include social factors cannot lead to making a good decision and although this may be very complex, a more realistic model must be developed that contains three dimensions, considering in addition to the quantity-price relationships, the social and physical resources… the consideration of the social sphere as part of the accounting knowledge object will allow the formation of new criteria for evaluating administrative efficiency, such as the global productivity surplus of the facts"

"Accounting is affected by the environment in which it operates" (Mueller, 1999, p.7), "Accounting as it is known in the US, is not like accounting in other countries, in fact, we find important differences, which are a consequence of the variety of business environments that exist around the world and the fact that accounting is sensitive to the environment in which it operates. ”

The particular conditions of the environments, needs and interaction between economies, allows a broad definition of "accounting system"; as expressed in (Jarne, 1997, p. 43), “Set of factors intrinsic to the system itself (internal agents) that through the modeling of which they are the object through their own interrelationships and external influences (external agents), make up a "whole" properly structured, capable of satisfying needs that are assigned to the accounting function in different areas "; The above definition highlights four essential aspects of the accounting system: intrinsic factors, external factors, the accounting system as a whole and the satisfaction of needs.

The function that accounting must fulfill is a significant factor in the definition and design of an "accounting system" and its usefulness in the environment where it is to be implemented; the passage of the “true profit paradigm”the “paradigm of the usefulness of information for decision-making” is not universal in all settings; in some settings (countries, regions, business entities) today, the “true profit paradigm” is used and in other settings there are proposals to overcome the “utility paradigm” by a new one “the comprehensive accounting paradigm”; maintaining in each system a different function for accounting, Example:

1. Fiscal function: it serves to determine the financial-fiscal information, support for application of tax bases (tax). In countries where accounting has a fiscal orientation, the norm establishes that the fiscal prevails over the accounting in case of divergence. Macroeconomic function: Accounting serves to offer the necessary information to evaluate the economic situation of a country and the necessary adjustments to the economy, to move from a given situation to a desired situation within the scope of national purposes. (Tua, 1983, p. 480), (Maldonado et al., 2000). Legalistic function: Orientation that can be identified with the characteristics of the "legalistic research program", presented in (Cañibano, 1974, p. 11),where accounting has the function of offering the owner the result (profit or loss) of the entity's operations; As well as serving as a guarantee to third parties of the entity's payment capacity and indebtedness, it can also be classified as joining the "Paradigm of true benefit". Utility function: This function is described in the "accounting information utility paradigm"; Pragmatic, utilitarian and finalist orientation of financial economic information, aimed at converting the EEFF into a useful tool for decision-making by users interested in the entity's information. The conceptual framework of the international standard IASB expresses in its paragraph 9, the users and their information needs, in this sense the accounting information must respond to their needs:“EEFF users include investors, employees, lenders, suppliers and other commercial creditors, clients, whether current or potential, as well as the government, government agencies and the public…”. Comprehensive role of accounting information: Function of great relevance at the present time, characterized by the standardization of financial and economic structures, once an integral function, it would consult the needs and characteristics of the environments where an accounting model is implemented. Her field of reflection is broader in understanding that accounting information includes financial and economic information analyzed from various angles (political, social, environmental, etc.)whether current or potential in nature, as well as the government, government agencies and the public… ”. Comprehensive role of accounting information: A highly relevant function at the present time, characterized by the standardization of financial and economic structures, once an integral function, it would consult the needs and characteristics of the environments where an accounting model is implemented. His field of reflection is broader in understanding that accounting information includes financial and economic information analyzed from various angles (political, social, environmental, etc.)whether current or potential in nature, as well as the government, government agencies and the public… ”. Comprehensive role of accounting information: A highly relevant function at the present time, characterized by the standardization of financial and economic structures, once an integral function, it would consult the needs and characteristics of the environments where an accounting model is implemented. His field of reflection is broader in understanding that accounting information includes financial and economic information analyzed from various angles (political, social, environmental, etc.)characterized by the standardization of financial and economic structures, once an integral function, it would consult the needs and characteristics of the environments where an accounting model is implemented. His field of reflection is broader in understanding that accounting information includes financial and economic information analyzed from various angles (political, social, environmental, etc.)characterized by the standardization of financial and economic structures, once an integral function, it would consult the needs and characteristics of the environments where an accounting model is implemented. His field of reflection is broader in understanding that accounting information includes financial and economic information analyzed from various angles (political, social, environmental, etc.)

The standardization of the instruments of apprehension and disclosure of information is the result of the growing strength of the global economy, which has represented a decrease in the autonomy of countries for their economic, political, military, social and cultural self-determination; In other words, it is a reaction to the growing need for international capital to increase its profits, decrease risk, and exercise greater control over wealth generation processes. Understanding that this is for Mattessich the accounting function, as expressed in (Cuadrado and Valmayor, 1999, p. 146), "study of the flow of economic wealth in terms of its creation, distribution and destruction…"

Globalization implies universal legislation (for dependent countries), in this sense the implementation of the international accounting structure represents the impossibility for countries to issue accounting standards, this function is the exclusive power of international standards issuing organizations (which exist at all levels), national institutions would limit themselves to fulfilling the function of supervising the correct application of international standards by those responsible for their application. The international structure of the Accounting Office has created and commissioned worldwide organizations to issue standards at all levels, as shown in the following graph.:

Standard emitter	standard
IASB - Standards Council international accounting. (for companies of public interest).	International standard on financial reporting. IFRS. (until April 2001 known as the IASInternational Accounting Standards). 41 issued, 35 in force. 1 IFRS issued: June 2003
IFAC - International Federation of accountants - through the Public Sector Committee.	International accounting standards for the public sector. IPSAS. 20 issued.
ISAR-UNCTAD - United Nations Conference on Trade and development through the Group intergovernmental expert on international accounting standards and Informs presentation.	Guidelines for accounting and financial information of SMEs level 2 and 3. DCPYMES. Issued 15 for level 2 entities. Issued 1 for level 1 entities.
IFAC- through the Audit Committee.	International auditing standards. NIA.
IFAC - through the Ethics Committee.	Code of Ethics for accountants professionals. Revised November 2001.
IFAC - through the Education Committee and ISAR-UNCTAD.	Accountant qualifications and education standards.
Organization for Cooperation and	Principles of Good Governance or Governance
Economic development.	Corporate.
World Trade Organization. WTO.	Rules of professionals.	markets		and	services

Against these issuers and international standards, national institutions would only have the function of monitoring public accountants, to guarantee to big capital that the accounting and auditing of financial information has been designed and developed in accordance with international standards.

In the most developed countries where the spirit of international standards is consolidated, globalization (its sharpening) has led to greater internationalization of the investor-creditor, which requires more reliable, understandable, comparable and relevant information; the magnitude of the businesses and the number of involved led to the clear separation between investor-creditors and manager, which results in the emergence of the figure of the auditor who guarantees investors that the manager acts according to their interests, a figure that charges higher importance with the rise of financial capitalism and the systematization and evolution of agency theory, see (Pina, 1988, pp. 9-33)

"The professional administrators (management entity) provide reports on financial performance for investors and creditors in order to report the situation of the resources entrusted to them," the auditor's role is to certify that the financial reports presented are indeed true. International standardization in accounting, auditing and public accounting reduces the cost of preparing and auditing information and speeds up its results over time, which is highly beneficial for the interest of big capital. But standardization does not consult the specific conditions of growth, progress and development of the various environments, nor is it aimed at satisfying the needs of localities, its desire is the cold calculation of utility maximization,regardless of its consequences.

The application of a particular and specific regulation for each of the countries is unavoidable because in the following elements their conditions are very diverse:

1. Who are the investors and the creditors? How many investors and creators are there? How close is the relationship between the businesses and the group of investor-creditors? What level is developed in the stock market and the bonds? The degree to which the international financial markets are used.

(Choi and Mueller, 1984, p. 41-44) they find twelve environmental factors that condition an accounting system “legal system, political system, nature of property in companies, differences in size and complexity of companies, social climate, level of sophistication of company management and the financial community, degree of legislative pressure on companies, presence of specific accounting legislation, speed of business innovations, state of economic development, growth patterns of the economy and status of organization and professional education”

In (Jarne, 1997, pp. 45-46), a summary of twelve authors and 22 factors causing the differences between accounting systems is exposed; The factors identified by the authors are the following: economic, legal, political, business property, business structure, social climate, inflation, level of business management, specific accounting regulations, business innovation, economic development, status of the profession, educational level, culture, taxation, financing providers, users and objectives, historical background, theoretical, linguistic influence, demographic level and international influence.

The complexity of the accounting system is directly proportional to the complexity of the entities and the inter-entity relationships in their environment, which in turn determines the characteristics and requirements in the training of accounting professionals, so that they can meet the information needs. of the users. This fact invalidates a priori any attempt to transfer norms from one environment to another, since the norm that in one environment produces satisfactory and highly useful results; it can generate dissonance and negative results in another environment where it is implemented mechanically and without higher levels of reflection.

As for the conditions of the developing countries in which Latin Americans are located, it synthesizes the following characteristics for which the implementation of an international model would not be completely compatible with the international system:

1. The sources of financing are financial intermediaries, mainly banking; In developed countries, the main source of financing is the capital market. The separation between ownership and control of business activity is less (if any). The demand for information is smaller, while it is oriented towards control. of the economic unit and the accountability of its activity, (they have a focus on the “profit paradigm”, while developed countries have overcome it). Accounting regulation takes time to appear (fundamentally being a transfer of regulations from other environments). Theoretical production is lower (just as professional requirements are lower) Taxation has a significant influence,Sometimes it comes to replace it completely (in underdeveloped countries, fiscal accounting takes precedence over general accounting).

The difference in the complexity and structure of the entities in the different countries has led to very different levels of training for professionals; accounting professionals in industrialized countries have achieved high levels of academic training and the opportunity to practice their profession in large, complex entities; what makes them apt to provide their professional services with great suitability in any environment; accounting professionals from underdeveloped countries receive medium or low-quality academic training and their professional performance is carried out in entities of little complexity (mainly in micro-small and medium-sized companies), which generates high conditions of inequality in terms of to professional competence,"Accounting and economic development clearly go hand in hand."

The desire for international uniformity of accounting practices by transnational big capital cannot be justification for the forced implementation of an accounting model that does not respond to the needs of the different environments in which it intends to impose itself; (Mueller, 1999, p.16) exposes “it should not be affirmed that the accounting of one country is of better quality than that of the other. Accounting exists because it satisfies a need, and as long as accounting meets the needs of its user groups, it will be doing what it is supposed to do. Accounting takes place within your own environment and is nourished by it. The fact that the world is a medley of accounting practices reflects the diversity of uses for which it is intended. ”

Entities with international capital or with international flows of financial resources are interested in the implementation of standards that help in the comparability and management of accounting policies that allow them, among others, discretion in the treatment of tax items, achieving a lower cost in the preparation of financial information, different from if it were prepared following the accounting practices established in the regulations in the different countries and obtaining tax benefits from the accounting treatment in their transactions. The interest of big capital is not the relevance of accounting practices to the environment where they are applied, their only interest is their own profit. Regarding tax treatment, IAS 12 Income Taxes (Revised in 2000) was issued.

The financial information crisis that broke out at the end of the last century and the beginning of the present,it becomes the major premise for the justification of the universalization of accounting practices, through standards of mandatory observation by entities in all countries. Paradoxical situation because it is intended that the IAS-IFRS standards, today very close to the US-GAAP be the practices used universally, being these US-GAAP standards those used by the companies that unleashed "the crisis of confidence" in international markets.

In international accounting regulations, what is developed with the recognition, valuation, measurement and disclosure of information in the EEFF is developed, a scheme that is influenced by users and specific information needs, the standards have been designed fundamentally from the needs of a particular user, so the orientation of the universal user is blurred (postulate of the utility paradigm)Furthermore, the fundamental user that the investor is, is not conceived in a general way for any investor, but fundamentally for the investor in negotiable securities in public markets.

1. Information to be disclosed in accordance with international standards.

Disclosure of financial information in the standard is of great importance, (Mueller, 1999, P.75) "disclosure of information refers to any information provided by a particular company." International accounting standards prescribe the treatment of accounting policies in the International Accounting Standards: IAS 1 Presentation of financial statements (Revised in 1997), IAS 8 Net profit or loss for the period, fundamental errors and changes in accounting policies (Revised in 1993) and in IAS 10 Contingencies and events that occurred after the balance sheet date (Revised in 1999). Said information, due to its relevance and pertinence, is presented in the annual reports (but intermediate financial statements are sometimes permitted and advised,treatment developed in IAS 34 Intermediate Financial Information, Intermediate EEFF -approved in February 1998-), where the attention of users is focused; the international standard identifies as basic states: (IAS 1, paragraph No. 7)

1. Balance sheet Income statement Statement of changes in financial position:
   1. Statement of cash flow Statement of application of resources
   Notes to the financial statements

Disclosure of information is financial and non-financial. In the disclosure, companies can present monetary and non-monetary data, in Requena (1981, p. 134 in quoting Ijiri, it is stated “there is no reason why accounting cannot be related to non-economic phenomena.” This other type of information is fundamental for understanding the situation of the entity, in This information is included:

1. Opinions, description and facts not easily quantifiable in monetary terms. Items quantified in terms other than money. (number of employees in each country) (Mueller, 1999, p. 76 and 77)

Disclosure criteria are directly associated with recognition criteria; the definition of assets and liabilities contemplated in the standard is very explicit when considering the two basic characteristics for its recognition. (IASB Conceptual Framework, paragraph 83); A game that meets the definition of an element must be recognized if:

1. Any future economic benefits associated with the particular item are likely to flow to or from the company, and the item has a cost or value that can be measured reliably.

When there is uncertainty regarding one or both of the previous requirements for the recognition of the Elements of the EEFF, IAS 37 - Provisions, contingent assets and contingent liabilities should be applied. (approved in July 1998)

The differences in the disclosure criteria are determined by the characteristics of the specific environments, as expressed in (Mejía, 2003, p. 4) “the implementation of a particular accounting model is based on the ability to contribute to the achievement of the objectives of the economic structure, in which said system is used ”, in this sense (Mueller, 1999, p. 78) exposes the following elements, among others:

1. The requirements of the PCGALas the needs of the usersThe influence of the usersThe policies of the administration (and their specific needs).

In the practical field of what to report in the EEFF, these respond to various questions, so a disclosure policy is subject to various conditions such as:

1. Disclosure of segmented information.

When disclosures are made by geographic area and by product type; In addition to the EEFF with their monetary information, topics such as: level of risk in the countries where they have investments, levels of return and possibilities of expansion in the market must be exposed with sufficient clarity, as well as revealing whether the central objective of the economic activity manages in the medium and long term to satisfy the needs of the community - market; The treatment of this type of information is developed in IAS 14 Financial Information by Segments (Revised in 1997).

The information by segments may be aimed at reporting by geographic segments, that is, by areas within the scope of the company or by product lines that reflect the behavior of each one separately. The information disclosed is expected to resolve two fundamental investor concerns (potential and actual), first: the certainty of profit and profitability, which must be greater than or at least equal to the average profitability of the sector, other things being equal. second and guarantee the expected cash flow. For the evaluation of the fulfillment of these two objectives have been issued: for the first objective IAS 33 Earnings per share (Approved in 1997) and for the second purpose IAS 7 Cash Flow Statement (Revised in 1992).

Sector information is one of the main concerns of companies with a multinational presence and has found in international standardization an efficient mechanism to implement a business benefit policy, even to the detriment of the economic, fiscal and environmental conditions of the countries where they have interests.. Five international standards have been issued in this direction: IAS 22 Business Combination (Revised in 1998), IAS 24 Disclosure on related parties (Reformed in 1994), IAS 27 accounting for investments in subsidiaries (Revised in 2000), IAS 28 Accounting for investments in associated companies (Revised in 2000) and IAS 31 Financial information on interests in joint ventures (Revised in 2000)

1. Social Disclosures.

The market economy has generated gradual (or accelerated) impoverishment of certain countries in relation to developed nations and of certain population sectors within countries compared to the rise of other lines of the population, offering great benefits especially for the investors in financial-speculative capital. The New International Financial Architecture (NAFI) of which accounting standardization is a part seeks to have better control instruments and control over the information of the sectors where it obtains its profits.

This marked condition of economic inequality has led to the creation of pressure against the social responsibility of companies, which despite not being as strong legal obligation, as expressed (Tua, 1983, p. 659) " their social responsibility is here a responsibility that is more ethical than legal ”, however they have started a process of information and disclosure of quantitative and qualitative data that shows what is the social added value of the entity / company; This behavior may also be due to ethical or advertising criteria that in the long term result in the financial well-being of the entity. The information that is reflected may include:

1. Number of employees, remuneration and additional benefits. Two standards that allow the treatment of this information can be mentioned, namely: IAS 19 Employee Benefits (Revised in 2000) and IAS 26 Accounting for Financial Information on Retirement Benefits (Reformed in 1994). Benefits for family members of employees. Dynamics of business relationships with suppliers. Taxes canceled and projected. Social activities developed within and outside the area of ​​business influence. Environmental Disclosures.

The environmental responsibility of the State and therefore of the companies is increasingly stronger a legal, ethical and business commitment. At a global level, programs aimed at the conservation of ecosystems are developed; as shown in the "Brundtland Report" "Towards Sustainable Development" "Sustainable development is development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs…" (World Commission on Environment and Development).

Environmental responsibility is also an advertising vehicle for companies, which aspire to consolidate their real clients and captivate potentials with the attractiveness of complying with environmental protection; for example, the German company VEBA exposes “the protection of the environment is an important prerequisite for long-term social and economic survival; the current environmental problems deteriorate living standards and production conditions of tomorrow ".

The documents produced at the international level show a real concern regarding the issue, in accounting matters the commission of the European communities presented on May 30, 2001 a “Recommendation regarding the recognition, measurement and publication of environmental issues in the annual accounts and annual reports of companies”.

No specific standard has been issued to address the environmental issue, which is inexplicable once the great wealth of developing (poor) countries lies in natural resources. Instead the wealth of developed nations is given by their intellectual productionThis explains why there is a standard with such specific guidance, IAS 38 Intangible Assets (Approved in 1998). Despite the absence of a standard for the accounting of environmental resources (if it were accepted that the most pertinent is a monetary measurement of the environmental, which is the subject of criticism), several IAS allow us to deal with the vacuum in the face of environmental issues, namely: IAS 37 Provisions, contingent assets and liabilities (Approved in 1998) and IAS 36 Impairment of assets (approved in 1998) and IAS 38 of Intangible assets, as exemplified (Tua, 2001, p.117-166)

Environmental concern has given rise to the so-called "green accounting" and the "green audit"; from what is foreseen it will take great force in the future, where the environmental responsibility will pass to the social conscience, beyond the discourse and will be a matter of viability of life itself.

The previous information disclosure criteria show an increase in the number of users of accounting information (economic - financial); the information is oriented in addition to the investor / creditor user; society, customers, environmental groups, political parties, social organizations and the general public, who want and should know the accounting, labor, social, environmental, political and cultural consequences of the actions of companies.

4. Consolidation of Financial Information

One of the problems presented by companies with subsidiaries in two or more countries is the presentation of consolidated financial reports, which is why for these types of companies international accounting standardization is an opportunity to increase the guarantee and control over their investments. at a lower cost and greater possibility of moving from the countries of origin of the investment, the accountants and auditors who will carry out their accounting work; In addition to the IAS related to the subject, with respect to the consolidated information specifically issued, IAS 31 Financial Information on Interests in Joint Ventures (Revised in 2000).

The need to present consolidated EEFF was the result of business expansion, the result of the accumulation of large capitals that were initially conquering nationals, to later become international entities / companies. The United States and Great Britain were the first countries to introduce this practice as mandatory in accounting management.

This is how he exposes (Mueller, 1999, p. 104) three factors on which the presentation of consolidated EEFF depends:

1. The legal or non-legal orientation of accounting. In some countries, accounting regulations, in addition to defining measurement, valuation, recognition and disclosure policies, establish the criteria to be taken into account in the presentation of consolidated SFRs. The relationship between the business and capital providers: The preparation of Consolidated EEFFs of companies that have or aspire to have sources of international financing, the consolidated information is a guarantee for current investors / creditors and an attraction for potential creditor investors. who have the practice of presenting consolidated financial statements, adopt this transfer orientation, like other accounting practices,Even without consulting the specific needs of information users and within countries, there is pressure from the dominant groups to defend accounting standardization that favors their interests (see: Watts and Zimmerman).

Whether the company presents consolidated EEFF or not, the additional and complementary information is essential to disaggregate the global figures that allow to hide the real situation of the entity, as reflected in the current cases of the confidence crisis..

5. Exchange Rates and Conversion to Foreign Currency

Normally, the accounting regulations of the countries require that the accounting records be brought to the monetary unit of the country.where the entity-company works (Controller or Subsidiary); For this reason, multinational companies must consolidate the information of various subsidiaries that express their accounting records in different currencies. The consolidation of the information requires that the financial information of all the subsidiaries, carried in different currencies, be expressed in a single currency, regularly, that of the country where the principal (parent) operates.

The exchange rate is a fundamental factor in the presentation of financial information, since the companies in their consolidation must make the conversion of one or more foreign currencies to a unit of measurement. “The exchange rate is the price of one currency in relation to the price of another”, defined by ISAR-UNTAC as “the exchange ratio between two currencies”. (Mueller, 1999, p. 106) exposes that the exchange rates vary for the following reasons:

1. Trade balance surplus or deficit. Relative information rates. Relative interest rates. Political factors of government intervention.

Related to the issue of the effects of exchange rates, is developed in IAS 21 Accounting of the effects derived from foreign exchange rates (Revised in 1993). The most significant issues in the “operations abroad and foreign exchange” policies are illustrated in (Mueller, 1995, 17.04) in her analysis of FAS - 52 (USA):

1. EEFFs must be in accordance with GAAP, prior to conversion. Entity operations …… must be based on the functional currency of the economy in which the parent entity operates. The current exchange rate is used for current conversion… The profit or loss for current conversion of EEFF denominated in foreign currency is included in the stockholders 'equity adjustment account and not in the income statement. The balance accumulated in stockholders' equity for profit or loss (item 4) is made at The investment in the foreign entity is sold or liquidated. The EEFF of any foreign entity operating in a hyperinflated country must historically be converted into the parent currency (the sum of the inflations of three consecutive years has been greater than 100%, interest rates,wages and prices tied with a price index, among other characteristics); IAS 29 Financial Information in Hyperinflationary Economies (Reformed in 1994), addresses the accounting treatment under these conditions. Foreign currency transactions are those that require payment in a currency that is not the entity's functional currency. Gains or losses for conversion resulting from foreign currency transactions, it is included in the income statement except when the transactions: are between affiliated companies, when it was formed to protect the net investment or to protect a commitmentTransactions in foreign currency are those that require payment in a currency that is not the entity's functional currency. Gains or losses from conversion resulting from transactions in foreign currency are included in the income statement except when transactions: between affiliated companies, when it was formed to protect net investment or to protect a commitmentTransactions in foreign currency are those that require payment in a currency that is not the entity's functional currency. Gains or losses from conversion resulting from transactions in foreign currency are included in the income statement except when transactions: between affiliated companies, when it was formed to protect net investment or to protect a commitment

identifiable…

1. Consideration of temporary differences, for which deferred tax must be provided… Certain specific disclosures are required.

It is appreciated that accounting systems are designed based on the particular conditions in which they are developed, any attempt at universal implementation of a rigid framework of rules can only be explained, such as the imposition of individual objectives on the collective interest of the economy. world. The accounting system of each environment must respond to the particular requirements of the environment in which it operates, as expressed in (Mejía, 2003, p. 4) “the implementation of a particular accounting model is based on the ability to contribute to the achievement of the objectives of the economic structure in which said accounting system is used; responding to the needs and characteristics of the environment, to the objectives and requirements of the system,in accordance with the established in the logical itinerary in the emission of accounting principles, according to a teleological interpretation of the general accounting theory ”.

In (Mueller, 1999, p. 118) it is exposed “the accounting system of each country evolved in such a way that it could satisfy the needs of its environment, and in particular, the needs of information users. Consequently, the accounting and reporting requirements of each country are different. The best way to adequately analyze the EEFF of another country is to understand its accounting system and business practices. ”

In (Gonzalo and Tua, 1988, p. 44) the presentation of the morphology of the AAA presents 8 parameters for the comparison of accounting systems, which can be presented in different degrees:

1) political system, 2) economic system, 3) economic development, 4) accounting objectives, 5) origin and authority of standards, 6) education, learning and authorization, 7) requirements of ethics and standards and 8) recipient.

In a similar sense (Mueller, 1999, p. 118) presents the environment variables that require a specific analysis for each system: relationships between the business and the providers of capital, political and economic ties with other countries, the legal system, the inflation levels, the size and complexity of business enterprises, the satisfaction of the administration and the financial community and general levels of education.

1. Changes in information needs.

With the development and complexity of financial activity, the information needs have changed in terms of criteria to be disclosed in the RUs, the measurement - valuation criteria, the time in which the information is required and even the role of the accounting information. But these changes in needs are not presented equally in all the countries of the world, since the development model has privileged some economies and affected others, therefore these changes require a particular analysis in each economy.

The computer age and the evolution of telecommunications have offered an opportunity for business, making it a challenge for accountants to use this tool as an essential instrument in decision making; The development of information systems contributed greatly to the impulse of an international revolution in communication management and especially in business, or as a result of the speed of information, any transaction in the international arena can be instantly known., that allows decision-making regarding:

1. Changes in interest rates and inflation, foreign investment policies, advances in multilateral trade agreements, national and international environmental policies, greater control over hours worked by employees, insurance and re-insurance policies, pension plans, etc. The relevance and speed of access to general information allows the financial information to be objectified, making it more timely and accurate in its details, such as: Performance measurement, detailing sales reports by distribution units and on a daily basis, monthly and yearly; evaluate fulfillment of objectives through comparison of projected and definitive statements, maintenance of optimal prices, through effective controls on costs, updating of fiscal policies in different environments.

In developing economies or "emerging economies" most companies are micro, small or medium, which could not implement the accounting model proposed by the IASB (International Accounting Standards Board), as their needs, type, level and quantity of transactions make this model incompatible with its needs and characteristics. Based on this, ISAR-UNCTAD issued in September 2002 the “Guidelines for the accounting and financial information of SMEs level 2 and 3 (DCPYMES)”to fill such a void; but the conceptual and theoretical orientation was developed from the IASB proposal, so the result, far from being a solution, turned out to be a construction of low theoretical and technical quality, since it is a faulty summary of a set of IAS, " short set ”and also does not respond to the spirit and need of SMEs.

These opportunities to access information and the need for it are not universalized at the same speed; For companies in “developing” economies, such opportunities are very restricted, and their needs are different. Their local market, the financing based on the manager-administrator and their limited level of resources, imposes on these companies a subsistence level in the short and medium term, developing their administrative model more by inertia than by planning.

In this sense, the implementation in “developing” economies of a complex accounting information system and with specialized functions that were designed based on models of developed economies, leads to a rupture between the economic model and the accounting model; Modernization of the accounting model cannot be achieved by a decree or a government or private decision, but is the result of the conjugation of multiple internal and external factors, predictable and unpredictable, that develop in the medium and long term. In this sense, weak economies will not become economically strong, automatically by the implementation of accounting systems of developed economies, on the contrary, it will be an obstacle to an authentic reading of the concrete realities.

1. Performance evaluation: an ideal-type concept

An essential factor in international regulations is performance evaluation, as expressed (Mueller, 1999, p.164), “performance evaluation is the periodic review of operations to ensure that the company's objectives are achieved. A corporation's performance evaluation system is a part of its financial control system. The multinational company must have accounting information to evaluate local and foreign operations. ” The definition shows concern for multinational companies regarding performance evaluation, which does not exclude other types of companies; although it is not the most pertinent instruments.

The intention to satisfy the needs of large companies is reflected when the evaluation of financial performance is presented; A priori, it is understood that there are established short, medium and long-term objectives, and that there are responsibilities to carry out the corresponding actions to achieve these ends. "Developing" economies have not reached the state of "financial capitalism" that characterizes large companies, where thanks to them they have developed and applied an "Agency Theory"; On the contrary, in poor countries the evolution of companies has been slow and they continue to experience pre-capitalism or "productive capitalism" different from "financial capitalism", which has different needs for different information and capital maintenance, according to the "Concepts of Capital and Capital Maintenance" of the IASB Conceptual Framework, paras 102-110.

Mueller argues that multinational companies present three types of measure to evaluate performance: Profit, compared budgeted profit against real profit and return on investment (ROI), which is expressed as the relationship between profit and invested capital; In addition, non-financial measures are presented to complement the monetary information. This information includes: Production quality, customer satisfaction and retention, employee training, research and development, investment and productivity, new product development, growth and success. of the market and competitiveness.

With the globalization of the markets and as a consequence the need to improve the economic-financial information systems, a debate has been generated regarding the following topics, sometimes dichotomous:

1. National GAAP or international standards (harmonize, adopt or adapt).Regional integration or global opening.

Regarding accounting reporting criteria, concerns such as:

1. Valuation, measurement and relevance criteria. Disclosure policies (qualitative and quantitative information). Content of financial results information. Transfer prices

Transfer prices can be classified as one of the fundamental problems in the international arena; A transfer price is defined by Mueller (1999, p.170) as "that charge that is made for the goods that are exchanged between several subsidiaries of the same company", understanding that this factor influences the tax effect of the entity-company.

A transfer price establishes the monetary values ​​of the goods and services that are traded between the main company and subsidiaries or between subsidiaries. In (Mueller, 1999, p.179) the objectives of the transfer pricing are exposed, which are:

1. Minimization of worldwide income tax paymentMinimization of import tax payment Obtain approval from the host country government…

It is observed that the central objective of transfer prices is based on the maximization of the utility of the entity-company, even at the cost of fraudulently reducing taxes, “The transfer price system can be used to carry profits taxable from a country that has a high tax rate to another country that has a lower rate, the end result is that the company will obtain more profits after the payment of taxes has been made ”, here tax havens play a leading role where income taxes can be “zero”, (example: Cayman Islands -1999).

The normative criteria for setting transfer prices are determined by the Organization for Economic Cooperation and Development OECD, without being mandatory as described by Carlos Caro Romero in the compilation of (Mantilla, 2002b, p.190) “los The most widely used methods for determining transfer prices are those that the OECD has defined as such. Even so, the groups of related companies are free to choose any other method while complying with the principle of independence, being careful to maintain and supply, when required, the information regarding the determination of transfer prices. ”

The decrease in import taxes occurs through the inter-company exchange of goods and services at low costs; This mechanism of imports for a higher value than the real allows the transfer of dividends between subsidiaries and principal, in countries where the amount of the outflow of resources for dividends is limited.

Transfer prices become an instrument of the entity-company to reflect at a specific time the information that is most favorable, in this sense high and / or low Inter-corporate prices are used depending on the purpose pursued at the time: Decrease tax payments, attract local investors, reduce the pressures of workers in the face of labor demands, achieve local bank financing, protect investment in hyperinflationary economies, interest in hiding profitability, safeguarding the entity-company in times of political instability, among others, the uses that can be given to transfer prices.

1. Special purpose rules

There are standards that are of very special and restricted application, since they respond to very particular characteristics and social objects of certain companies, among them are: IAS 11

Construction Contracts (Revised 1999), IAS 17 Leases (Revised 1997), IAS 20 Accounting for Government Grants and Disclosure of Government Aid, Conclusions

Implications of harmonization or standardization of accounting regulations

Harmonization cannot be understood as a synonym for standardization, as it is pointed out (Belkaoui, 1993, p. 650) in an explanatory quote from both points “the term harmonization, opposed to the term standardization, implies the reconciliation of different points of view. This in turn represents a more practical approach than standardization, particularly when standardization means that the procedures of one country should be adopted by all others. Harmonization becomes a matter of better communication of information in a way that can be interpreted and understood internationally ”

In this sense, the current adoption or harmonization processes that are being carried out in the world should consult the different factors that intervene in the accounting process of a country, in order to analyze the implications of such implementation, as expressed (Jarne, 1997, pp. 85-114) where it is stated that the following subsystems of the accounting system must be considered:

Regulatory subsystem: which takes into account in its regulatory issuance process, the nature of the body in charge of public and / or private issuance (Tua and Gonzalo, 1988, pp. 70-74) “both nationally and internationally distinguish between public and private or professional standardization ”; degree of intervention of government, professional and union organizations; main users, flexibility and uniformity, see (Tua, 1995, pp.73-77), degree of legal legal requirement of compliance with the standard. Highlighting that "accounting standards must be created, with each nation having at first the sovereignty to establish its own regulatory framework"

Accounting Principles Subsystem: Comparatively studies the sources from which accounting principles emanate, dilemmas and contradictions between principles see, (Moonitz-ARS 1); degree of autonomy in the concretion of accounting principles (Franco, 1995, pp. 40-43), where in the regulation methodology he identifies three methods “of transfer, descriptive and technological formulation”; meaning given to the term accounting principle (Tua, 1983, pp. 638-640) "… the general one, the one derived from its historical origin and the epistemological one -founded by Mattessich-". Authors such as Jarne, Mueller, Belkaoui and Mattessich agree that the regulatory process must develop useful principles that are consistent with the environment.

Professional subsystem: consultation at a comparative level of the different countries: professional expertise, professional associations, periods of education, proficiency tests, practical training, codes of conduct and / or ethics; in addition to studying the profession in its individual dimension (professionals), professional associations (organizational and union level) and participation in audit firms; (the big four, formerly known as the big eight). The social commitment of the profession, with the environment, with society and with transparency and public trustworthiness is highlighted.

Training subsystem: studies the adequacy of accounting education with social demands and needs, the characteristics of teacher training (with specializations, master's degrees, doctorates), participation of companies in university training, role of multinationals and firms audit and criteria for professional qualification, (see: IFAC Documents –Guides 2-9-11- and ISAR-UNCTAD education documents); differences in the training and qualification process are highlighted (knowledge, skills, values, capacities and competences) required in different countries, which hinders a supposed standardization ³⁸ in the training of accountants.

Accounting practices subsystem: which in turn is divided into two groups: valuation practices and information practices; It is taken into account which organizations determine the evaluation and information criteria, whether it is a single organism that issues the norm or there is regulatory pluralism, quantity and quality of information required, degree of precision in the information to be disclosed, measurement bases. It should be noted that the valuation and disclosure requirements depend on the users and the complexity of the market where it is regulated. As an example, the Fair Value criterion can be cited (IAS-IASB), contemplated in international regulations and its relevance to developing or emerging economies.

The change in an economic environment of its accounting systems implies profound transformations in the technical and professional aspects: the guidelines for preparing financial statements, updating of accountants and accounting assistants, acquisition and / or updating of accounting programs, Users must learn to interpret accounting information, prepared under new criteria, educational institutions must implement new curricula, methodologies and relevant content with the established changes; All these changes, which are not necessarily synonymous with improvement, represent an expense for the nation, businessmen, professionals, students and society in general. This expense is justifiable if and only if, the cost-benefit ratio is favorable for the nation that advances the reform;Otherwise, it should be understood as an imposition of international organizations that does not benefit local economies at all, but on the contrary further weakens the socio-economic conditions of developing nations, which have traveled a path of a-critical transfer of legal models and structures.

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Progress report: Contribution of the World Bank group to the strengthening of the new international financial architecture. World Bank September 21, 1999. DC / 99-28

IASB Conceptual Framework approved in April 1989, which consists of 110 paragraphs.

"The content of the financial statements is oriented to the needs of the user, assuming that its main requirement is adequate informational support for decision-making" (Tua, 1995, p. 191)

Deductive-normative approach, supported by concepts of value, income and wealth, fundamentally based on historical cost, where the concept of truth is presented above that of utility, where what matters is informing the owner of the profit thrown in the period studied. (Tua, 1995, p. 193).

Franco Ruiz, Rafael. Towards a comprehensive accounting model. In International Journal Legis de Contabilidad y Auditoría, No 15 July-September; 2003m pp. 113-156.

It is intended that the exposed orientations include the different approaches that various authors have tried to develop (Hendriksen, 1974, p. 3-19), (Montesinos, 1978), (Cañibano, 1974, p. 11-23), (Tua and Gonzalo, 1988, p. 47), (Mattessich, 2002, 141), (Requena, 1981, 162-163), (Tua, 1983, p. 449-484)

The graph does not include all the standards that are considered part of the new international financial architecture, among which stand out: transparency in monetary and financial policy, transparency in fiscal policy, data dissemination, insolvency, payments and compensation, integrity market, banking supervision, securities regulation, insurance supervision (Mantilla, 2002, p. 54).

Called: International Financial Reporting Standards.

Called: International Accounting Standards.

Called: International Auditing Standards.

"When the interests of the manager do not correspond closely to those of the shareholder and the latter does not have sufficient power to impose his will, one can speak of the existence of financial capitalism (Tua, 1983, p. 657)

Quoted by (Tua and Gonzalo, 1988, p. 39)

Professional accounting education is public or private.

Tua Pereda, Jorge. Spain reflects on international standards. In: International Review Legis de Contabilidad y Auditoría, No 13, pp. 93-154.

See: Franco Ruiz, Rafael. Requiem for trust. Investigate: Pereira, 2002.

The "comparability project" was launched to "raise the quality of the standards and regain the respect lost due to the excess of alternatives. To this end, the IASC Comparability-Steering was created, a Committee that issued the document Comparability of financial statements in January 1989; the comparability project was completed in November 1993 (García and Lorca, 2002, p. 20). The comparability project was developed from the rapprochement between IASC and IOSCO, the organization where the SEC exercises the greatest influence.

See: Tua Pereda, Jorge. Theory readings and accounting research. Medellín: CIJUF, 1995, p. 191-220. "Some implications of the utility paradigm in accounting discipline".

International accounting standard (IAS) 1: Presentation of EEFF, paragraph 7, “components of the EEFF”.

Mattessich, Richard. Accounting and analytical methods. Buenos Aires: La Ley, 2002, p. 141.

"Sustainable development is development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs…"

See: Rueda Delgado, Gabriel. Alternative development and accounting: an approach. In Magazine Legis del Contador No. 9 (January-March 2002), p. 11-128.

Senés García, Belén and Rodríguez Bolívar, Pedro Manuel. Environmental responsibility. European Union recommendation. In: Magazine Legis del Contador No 10 (April-June 2002), p. 121-162.

Official Journal of the European Communities (C2001) 1495.

“It is not a coincidence that 94% of the total number of scientists belong to the first world. Even though the third world represents 77% of the world population… developed countries, with 23% of the human population, lead the market systems, control the generation, transfer and commercialization of scientific technology. Only 1% of scientists are Latin American… ”Document: Colombia on the brink of opportunity. 1994.

Tua Pereda, Jorge. International accounting and auditing standards on the impact of the environment on financial information. In: Magazine Legis del Contador No 7 (July-September 2001).

See: Enron in sight. Edition. In: Inter-America Magazine, special edition (October 2002-March 2003)

Defined by Moonitz in Postulate A.5 as Unit of Measure… any report must clearly indicate the monetary unit used (for example: dollars, francs, pounds…).

Regarding the last two points, the standardization of the accounting profession, presents the IFAC code of ethics at the ethical level (Revised in November 2001) for universal observance by member organizations. With regard to education, it presents a strategic conceptual structure for the education of the accounting profession, the education guides among which stand out No. 2, No. 9 and No. 11 and Paper No. 2 In search of competent accountants, issued in April 2003, in addition to a global curriculum program; documents prepared by IFAC through the ethics and education committee respectively,and by the United Nations Conference on Trade and Development through the Intergovernmental Group of Experts on International Accounting and Reporting Standards (ISAR-UNCTAD).

15 DCPYMES were issued, which are the result of the summary of 16 IAS for level 2 and an accrual-based general guidance for level 3 SMEs.

See: Documents of the Inter-American Development Bank, issued through the Policy and Evaluation Committee. (19982002).

(Tua, 1983, p. 657) defines financial capitalism as the development of the economy that has led to "the interests of the manager not closely corresponding to those of the shareholder and the latter does not have sufficient power to impose his will."

(Pina, 1988, p. 15) expresses on the Theory of the agency “the dynamic relationship established between the manager and the scope of the company and more specifically with the shareholders… the relationship between the form of the contracts and the characteristics of the organization ”.

Álvarez, A. Harold. Adoption or harmonization of accounting regulations. Paper presented at the Second International Colloquium of Public Accounting. August 2002.

Mantilla Blanco, Samuel Alberto. Guide for the Colombian accounting insertion in international scenarios. Developing solutions series No 10. Bogotá: IPD. 2002; pp. 11-26.

Coopers Price Waterhouse, KPMG, Ernest & Young and Deloitte & Touche.

IFAC Guide No. 9: Academic Background, Assessment of Professional Ability and Experience, Requirements for Professional Accountants. Review 1996.

IFAC International Education Paper 2: In Search of Competent Accountants- 2003.

See ISAR-UNCTAD documents: ISAR / December 4, 1998 on a global program of studies and professional qualification; ISAR / December 5, 28, 1998 idem; ISAR / December 6, 1998, “World Curriculum for the Training of Professional Accountants”; ISAR /L.2 February 23, 1999 “Development of a global accounting study program and other standards and qualification requirements”; ISAR April 16, 1999 on professional qualification.

Fair value: is the amount for which an asset can be exchanged, between an experienced buyer and seller, in a free transaction. (glossary IAS-IASB-2002)

Vidal Blasco, María Arántzazu. Treatment of fair value in IASB regulations and its incorporation into the directives of the European Union. In: Magazine Legis de Contabilidad y Auditoría, No 14, April-June; 2003, pp. 63-82. (to broaden the concept of fair value)

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