International Trade in Services.pdf - DSpace at Khazar University

274 International Trade in Services
international cooperation and standard setting. International financial reporting
standards (IFRSs) are used in many parts of the world, including prominent
developing countries (see box 8.5). While IFRSs are widely used by listed companies
(85 countries impose the IFRSs for such companies), 36 countries allow some
or all nonlisted companies to use the IFRSs, and 48 countries require some or all
nonlisted companies to use them. Table 8.5 provides information about the use of
the IFRSs in selected developing countries.
Adopting international standards has benefits for the domestic profession
and the economy more generally. It promotes trade integration, including
through the facilitation of commercial transactions and capital movements
(foreign investment). For the profession, the adjustment of training and qualifications
to meet international standards (unilaterally and through mutual
Box 8.5: International Accounting and Auditing Standards
Globalization has prompted standard-setting bodies to assess differences in standards,
principles, and practices. For example, the International Accounting Standards
Board and the Financial Accounting Standards Board are working toward a more
principle-based means of regulating through the convergence of the IFRSs and
the generally accepted U.S. accounting principles and rules. Standard-setting bodies
are working toward global standards that enable creditors, investors, and corporate
managers realistically to assess the financial health of private and public entities.
Accounting
• International public sector accounting standards are developed and issued by the
International Public Sector Accounting Standards Board of the International Federation
of Accountants.
• The international private sector accounting standards are the IFRSs. They are developed
and issued by the International Accounting Standards Board.
Auditing
• International public sector auditing standards are developed and issued by the Professional
Standards Committee of the International Organization of Supreme Audit
Institutions. The committee has merged the old and new standards and guidelines
into a framework. The overall purpose of the framework is to give the members of
the International Organization of Supreme Audit Institutions and other interested
parties an overview and common understanding of the auditing standards and
guidelines. International Standards of Supreme Audit Institutions is the name commonly
used to refer to the body of documents on the responsibilities of supreme
audit institutions.
• The International Auditing and Assurance Standards Board of the International Federation
of Accountants develops private sector international auditing standards.
Source: http://www.worldbank.org/ifa/rosc_aa.html.