At the international level, a financial crisis has been generated, whose influence has reached all areas of the economy. Globalization did not implement norms that could reach and benefit a planetary society with ethnic and cultural differences and the socioeconomic conditions that are governed in each nation.
For the creation of a new financial architecture, it is necessary to implement standards with norms that can encompass global society, formulating and applying new macroeconomic policies at the international, national and local levels.
Abstract
At International level a financial crisis has been generated whose influence has reached all the environments of the economy. The globalization didn't implement a norm that could reach and to benefit to a planetary society with the ethnic, cultural differences and the economic conditions partner that are governed in each nation.
For the creation of a new financial architecture it becomes necessary the implementation of standards that you / they can embrace the global society, formulating and applying new macroeconomic politicians in the international, national and local environment.
Globalization needs to be defined. According to encyclopedic data: “Concept that aims to describe the immediate reality as a planetary society, beyond borders, tariff barriers, ethnic differences, religious beliefs, political ideologies and socio-economic or cultural conditions. It arises as a consequence of the increasingly accentuated internationalization of economic processes, social conflicts and political-cultural phenomena ”.
Globalization, in its different forms, presents potential benefits but at the same time costs and risks. Among the advantages at the international level, the provision of capital, investment opportunities, the number and size of international offers of securities, shares and other new categories stand out; This globalization is accounting and financial.
In its beginnings, the concept of globalization has been used to describe changes in national economies, increasingly integrated into open and interdependent social systems, subject to markets, currency fluctuations and speculative capital movements.
Globalization has three fields in which its influence is notably accentuated: the economy, politics and culture; but its most precise scope in the world is the economy, specifically at the commercial, financial and organizational levels.
According to encyclopedic data “Economic globalization supposes absolute freedom of exchange. With it, the production of goods is only limited by physical or geographical advantages; companies are organized in a very flexible way so that they have better access to global markets; while the financial market is decentralized, it has an instantaneous character and escapes the influence of governments. "
The increase in cross-border economic activities takes several forms:
International Trade, Foreign Direct Investment (FDI), Capital Markets Flows. However, in the face of this new technologically developed world with more per capita production capacity than has existed in any other historical moment, humanity has to face serious problems.
The global economic crisis has been generated, which started from the Asian financial crisis and this phenomenon has forced the establishment of self-defense mechanisms against financial instability, and to discipline the debtor countries.
According to the UNCTAD report on Trade and Development 2001, which aims to promote international trade, among countries of various stages of development and with different economic systems, that for the reform of the international financial structure, great attention must be paid to:
- The introduction of monetary target zones, modifying the IMF's founding agreement. The establishment of a procedure for effective multilateral surveillance of the macroeconomic policies of the main industrialized countries, with a view to the repercussions in the poorest countries.
The previous report criticizes the unbalanced approach that has been adopted, recommending that initiatives aimed at establishing or strengthening regulations for the financial sector be examined.
Summing up the UN statement, “…. The crisis, revealed, the fundamental problem of the global economy with marked ambivalences and discrepancies between a sophisticated international global financial world and the absence of an institutional framework capable of regulating it, with inadequate institutions to face financial globalization, which present marked deficiencies in the consistency of macroeconomic policies in management. The urgent need to reform the financial system in a comprehensive way, thus improving the economic projections in the world….. "is revealed.
Many are the debates that have been generated regarding the need to implement a New International Financial Architecture and the result of them are topics such as:
The role of the IMF and the type of credits that it can provide to countries and their terms, the role of multilateral or regional banks in relation to poor countries as well as those of medium development and the relationship of organizations such as the IFC, with the private capital market, the debt of developing countries, the control and supervision mechanisms of international speculative capital and the financial regulation mechanisms and the WTO and the level of transparency with which these mechanisms operate.
(Samuel A. Mantilla) presents the world of accounting globalization as a reality:
"one. Issuer, 2. Application regulator and 3. The profession that applies it.
Taking an overview of the capital markets, we can see that they are increasingly growing, and therefore require that the accounting information be presented in financial statements in accordance with established principles, and in accordance with high-quality global accounting standards., audit and service providers. The imminent progress that has been taking place at a dizzying rate is creating elements and needs, which is generating a new model called “The new International Finance architecture.
"This new model is aimed at following five work fronts:
adoption of global standards, implementation of said standards, substantial changes in the underlying conceptual structures, support in information technology and recognition of the presence of new regulators."
The new scheme has a greater boom in the presentation of financial reports and gives rise to the implementation of new technologies and the Internet to be part of the new XBRL language.
This language was born in order to make possible the electronic exchange of data, which is a fundamental tool in the accounting profession, through which another dimension is given to tax files, payroll systems, financial statements, etc. and where the professional accountant may, from his office, give an electronic file to be used by other people or by computerized programs; therefore, the accounting profession must be at the forefront of entering financial information, on the postulates of the experts in this regard and on their application.
Colombia has not been at the forefront in terms of International Financial Economics, as are the most developed countries, which has meant that we do not have the tools or the education necessary for effective implementation with the expected success. This does not translate, in any way, to ignorance of the subject, but as a less developed country, it is necessary to implement a regulation with standards that meet the expectations and requirements of a society that belongs to a global world but until now incongruous. Colombia requires accounting mechanisms where transparency, fairness and reliability are not only postulates, but a constant practice.
Conclusions
Economic globalization, with its benefits and mistakes, as well as financial internationalization have served as a platform for the emergence of a new International Financial Architecture, which has generated changes in the accounting field, adopting the scheme of a professional accounting firm.
The accounting world is not a static phenomenon and its dynamism will continue to change, with a view to finding excellence with the difficulties that this entails.
It is a fact that globalization has served to describe the immediate reality of a planetary society, where there are no borders; Reaching this premise may sound like a financial utopia, since in reality all kinds of inconsistencies have arisen due to ethnic and cultural differences and preconceived paradigms as far as the economy is concerned.
In the field of the accounting profession, the New International Financial Architecture makes its way, which has as its essential purpose, the adoption and implementation of international standards, in order to regulate the global economy and therefore accounting globalization, without leaving aside from legal harmonization.
This new structure supports the implementation of new information technologies, in order to implement an effective and secure global exchange to satisfy the need of users, thus creating a new language in the profession.
Bibliography
World Bank, Global Economic Prospects and the Developing Countries, 1997. Internet.
World Bank, Global Economic Prospects and the Developing Countries, 2000. Internet.
Encarta, Encyclopedia. Article The Global World, 2003.
Estiglitz, Joseph. Institute of International Finance, 1999. Internet.
Mantilla B. Samuel Alberto. International Standards for the Representation of Financial Reports.
Mejía soto, Eutimio. Introduction to International Accounting Standards. Armenia: University of Quindío, 2005.
Mejia soto, Eutimio. International Guidelines for Financial Reporting Accounting for PYMES-DCPYMES. Armenia: University of Quindío, 2005.
Mejía soto, Eutimio and Montes Salazar, Carlos Alberto. International Accounting. Approach to International Standards. Armenia. University of Quindío, 2005, ps. 17, 19, 24.
Rodrik, Dani, The New Global Economy and Developing Countries, Making openness work, Police Essay, Overseas Development Council, Washington DC 1999. Internet.
(Encarta Encyclopedia 1993 - 2002)
(Encarta Encyclopedia 2003)
(United Nations Conference for Trade and Development)
International Monetary Fund
(United Nations, statement, January 1999)
(International Monetary Fund)
(International Finance Corporation)
(World Trade Organization)
Samuel Alberto Mantilla. International Standards for the Representation of Financial Reports.
Samuel Alberto Mantilla. International Standards for the Representation of Financial Reports
(Extensible "Labeling" Language)
