International Trade in Services.pdf - DSpace at Khazar University

276 International Trade in Services
recognition agreements) and acquaintance with the most up-to-date accounting
methods and standards are essential to becoming internationally competitive.
This could occur as the result of technology and knowledge transfers
through participation in international networks of accounting firms (for
example, the big four) or as part of an effort to achieve such integration.
Most listed companies and multinational companies need their accounts to
be kept according to international standards. Accountants who are not qualified
or acquainted with such standards do not have access to these important
clients.
For the economy as a whole, the adoption of best practices and international
standards facilitates integrity in the public and private sectors, instills confidence
in business transactions, and facilitates the access of businesses to credit,
among other advantages. Trade opening and domestic reforms should therefore
be accompanied by increased international cooperation and standards harmonization.
While a strong case can be made for the adoption of international
standards by developing countries, there are some caveats worth noting. Thus,
for the majority of firms in developing countries that are small and mediumsize
enterprises, international standards may constitute an unnecessary burden
on the firms themselves and on the local accounting service markets that lack
enough qualified professionals. The potential risk is that developing countries
might reallocate all their efforts and resources solely to the production of
accountants qualified to implement international standards at the expense of
accounting technicians who could provide affordable and appropriate services
to the majority of domestic firms; the countries would thereby leave a large portion
of the domestic market underserved, even if the prospects for exports
would be enhanced.
Simplified IFRSs for small and medium-size enterprises have been developed
by the International Federation of Accountants. The extent to which countries
adopt these IFRSs and create a corresponding accounting technician qualification
that is recognized internationally could actually benefit the exporting of
accounting services, particularly those related to the outsourcing of activities
that require lower qualifications, such as bookkeeping, account management,
billing services, and payroll. (Box 8.6 provides an example of a support program
for standard compliance.)
Adapting the profession to international competition
The existence and diffusion of international standards are a means to enhance
the global integration of the accounting profession. The more uniform the
standards, the more tradable the services of domestic accountants. This