DEVELOPMENTS IN ACCOUNTING ON THE INTERNATIONAL LEVEL
Michael N. Chetkovich Partner, Executive Office
Presented before the San Francisco Chapter, National Association of Accountants-November 1973
Tonight I would like to chat with you about some rather interesting developments
on the international accounting scene. In so doing, I recognize that the subject may not be of high priority interest to all of you—particularly to those of you who are associated with organizations that are not heavily involved
in international activities. Yet, it is a subject of vital interest to many of us and one that should have some—and growing—interest for practically all of us.
We live in what has increasingly come to be an international society and an international economy. The modern industrial corporation has become an institution that transcends international boundaries. We have seen the steady advance of American investment into practically all parts of the world. We have also noted, and particularly in recent years, a rising rate of investment by European and other foreign investors outside of their own countries, not least of all in the United States.
In fact, this rapidly increasing involvement of foreign corporations and countries in business enterprises in the United States is one of the most interesting and more significant economic phenomena of today. Reflect, if you will, on these happenings, just as a sample of what is going on:
• A British tobacco company buys Gimbels, a major retailing operation.
• An agency of the Canadian government buys a 20 percent interest in Texas Gulf Sulfur, a major natural resource company.
• A Japanese trading company enters into a joint venture to take over the aluminum operations of American Metals Climax (Amax).
• The National Iranian Oil Company enters into a similar arrangement involving
certain of the refining and marketing operations of Ashland Oil Company.
These are but a few examples of this phenomenon; hardly a day goes by that the financial press does not report one or more additional ones.