14th May 2009:

My apologies....

... to regular readers (I know there are at least a few of you - not least because I met one in Hong Kong on Tuesday evening) for the absence of anything new over the past few days.  This is not due to a lack of things to comment on - or a dearth of views from me - but a reflection of my travel schedule.  I was in South Africa last week and am now in China, having spent a few days in Hong Kong, and it is clear that concerns over fair value/mark-to-market are as prevalent in these countries as in the USA, Europe and elsehwere.  I was interviewed on both radio and TV in South Africa with particular concerns expressed about what I would describe as "political interference" in the setting of accounting standards.

The "divergence" between US GAAP and IFRS is of particular concern as these countries feel they have limited ability to influence this debate yet are compelled to make a choice as to which standards to follow - tricky for those that see both the USA and Europe (primarily the UK) as their "natural" sources of capital.

I have talked in the past about the need for those of us in western, capitalist, liberal democracies to be sensitive to other "cultural norms" and not to assume that "our" business model and approach can be applied everywhere.  Our approach to accounting standards - which doesn't seem to involve meaningful discussion with those outside the key capiatl markets in the USA/Europe - suggests we have not yet fully taken on board the effects of globalisation.

More to follow when I am back in the office and have a chance to write a longer piece.

PS I am meeting Denis Howlett on Friday afternoon. You may recognise him as a very active "blogger" with some strong views on accounting matters and the audit profession.   You can find his blog at http://www.accmanpro.com/.  It should be an interesting afternoon.

 International BDO  0 Comments May 14th, 2009