NationStates Jolt Archive

It may sound a bit dull, but it seems like a good idea. Your thoughts?
(And is there some NationStates 'hotshot' ;) who is willing to support me on this?)



Category: Free Trade: A resolution to reduce barriers to free trade and commerce.

Strength: Significant

Resolution Name: United Nations Accounting Standards Board


Description:

The United Nations,

- knowing that investors and potential investors often compare the financial statements of different companies all over the world,
- realizing that the accounting standards and principles often differ considerably across nations or states,
- also realizing that, as a result of the globalization of the economy and the explosive growth of international commerce, more and more investors commit their money worldwide, either as individuals or through retirement accounts or mutual funds, and more and more companies rely on international capital to finance their growth,
- acknowledging the growing interest in adopting a common set of accounting principles throughout the world,

establishes the United Nations Accounting Standards Board (UNASB):

1) The goal of the UNASB is to develop, in the public interest, a single set of high quality, understandable global accounting standards, thus reducing international diversity.
2) The UNASB will consist of 20 members, representing a diversity of geographic and professional backgrounds.
3) The members of the UNASB must have high ethical standards and a sound knowledge of accounting principles.
4) The development of the set of global accounting standards by the members of the UNASB must be based on: (a) experience with accounting systems and principles, (b) custom, (c) practical necessity, and (d) simplicity.

Compliance with the global accounting standards developed by the UNASB is voluntary. However:
- National parliaments (or other institutions) may pass a law that obliges all companies having its seat in the country to follow the global accounting standards developed by the UNASB.
- Companies that follow the global accounting standards developed by the UNASB can mention this is their annual report. This statement can be checked by independent auditors, as usual.
- Many investors who are comparing the financial statements of different companies will choose to invest their money in companies that follow the global accounting standards developed by the UNASB.

Drop (2). The NS committees are staffed magically by gnomes; specifying a number might anger the mods, annoy the deligates, and generally throw the train off the tracks.

Since compliance is voluntary, I would suggest calling this a mild resolution.

Otherwise this looks good for an initial draft. Something I would definitely support.

We have (as always) a few quibbles with wording, which we believe can be accommodated easily. We also think the comments of the distinguished representative of Tzorsland should be heeded. Perhaps just dropping the number of Board members would suffice.That being said, the Principality of Ausserland pledges its support for this excellent proposal.

Patrick T. Olembe
Minister for Foreign Affairs

If you want to make the proposal voluntary without violating the rules, you can use mild laguage. For example:
RECOMMENDS that all member nations follow the policies set forth by the UNASB.

HotRodian UN Representative
Accelerus Dioce

The Commonwealth supports this shindig. Good luck.

This looks interesting ("interesting" in the sense that it's something the UN can usefully do; accounting itself, not so much).

One thing, though: it might be helpful to give a general overview of the sort of standards UNASB would be working towards.

The Holy Empire of Saint Anns Bay thinks this is a realistic proposal...we see no problem in supporting this if it gets pass quorum

We thank you all for your constructive remarks.
In fact, there were fewer remarks than we expected. We are not sure whether this is a good or a bad sign.

We will make it a ‘mild’ resolution and try to find some way to get around the rule about ‘optionality’.
We will certainly omit the number of members of the UNASB (I don’t know why I mentioned it in the first place), and will try to be a bit more specific about the accounting standards, without being too specific.

If all goes well, the proposal will be submitted in a few days time.

Kapellen representative