New accounting network is based in Moscow.

The Organization for Economic Cooperation and Development has organized an accounting network for the 12 members of the Commonwealth of Independent States (CIS) to promote accounting reforms and provide information on international accounting and auditing standards. The network, set up by the OECD's Center for Cooperation with the Economies in Transition, will have representative offices in each of the participating countries and its main office in Moscow.

"When the former Soviet Union opened up, the OECD organized a group of accounting specialists from the CIS that met once a year to discuss developments in accounting reform," said Richard Frederick, OECD director of financial, fiscal and enterprise affairs in Paris. He said the group wanted to meet and exchange information more often because members were going in too many different directions on accounting reform. "The CIS was hearing advice from the United States on generally accepted accounting principles, from the German ministry of justice, France and the World Bank," said Frederick.

The network's inaugural meeting at the end of February was attended by the heads of accounting boards and high-ranking accounting officials of CIS member countries. "This network delivers information to the central office in Moscow where it is cataloged, entered into a database and made available to anyone who needs it," said Frederick. "The Moscow office also publishes a quarterly newsletter that summarizes basic accounting trends and substantive information on new accounting guidelines and standards."

There is a real demand for information on CIS accounting reform, according to Frederick, especially from international capital markets that wish to invest in the CIS. "These markets are in desperate need of good information and they can't find it outside of our network," said Frederick. "Before, most of the information came from the CIS member countries' tax ministries."

A good time to harmonize

The harmonization of international accounting standards came closer to reality when the International Organization of Securities Commissions agreed in July 1995 to endorse a core set of international accounting standards as an alternative to independent national standards. Frederick said the 26 member countries of the OECD also agreed to adopt international accounting standards. "Germany agreed to recognize international accounting standards for stock listings and the European Union chose not to create special EU accounting standards," said Frederick. "The OECD stands very much behind the use of international accounting standards in light of the events that occurred last year."

For more information on the accounting network, contact Richard Frederick at the OECD in Paris, France, by calling (331) 45 24 78 52, or by e-mail at richard.frederick@ oecd.org.