International Trade in Services.pdf - DSpace at Khazar University

264 International Trade in Services
The accounting profession is highly integrated internationally. The “big four”
accounting firms (Deloitte Touche Tomatsu, Ernst & Young, KPMG, and Price -
waterhouseCoopers) play a dominant role globally and account for more than
three-quarters of the profession’s revenues in many countries. 1 Moreover, the
growing implementation of internationally recognized accounting standards and
laws helps countries instill confidence in commercial transactions and facilitates
trade and investment. This credibility-enhancing effect is particularly important
for developing countries that are striving to attract foreign capital.
This chapter synthesizes background information on the accounting profession
and discusses policy initiatives that decision makers interested in developing
the profession can undertake to improve regulatory conditions at home and gain
access to potential export markets. The first section provides an overview of the
accounting profession and illustrates the extent and benefits of trade in accounting
services. Initiatives to pursue a policy dialogue at the national and regional
levels to identify trade-related issues and constraints are then discussed, and
potential policy initiatives to build professional value and improve market access
abroad are presented.
What Is the Situation of and What Are the
Prospects for Trade in Accounting Services
While it is difficult to obtain comprehensive data for developed and developing
countries, it can be seen in figure 8.1 that, in 2006, total revenue generated in the
global accounting market amounted to US$215 billion, with annual growth rates
Figure 8.1. The Rising Global Revenues of Accounting Firms
250
5.4% average annual growth
200
US$, billions
150
100
50
Source: Datamonitor (2007).
0
2002 2003 2004 2005 2006