16). In this free-for-all environment, it is difficult to discern any influence from the French accounting profession, except to the extent that its transactions involved the international community where certain documentary practices must be followed in order to conduct international commerce. For example, according to a contemporaneous analysis of the accounting profession in Cambodia by Steinberg (1959), the National Bank of Cambodia "still uses the French Union Stabilization Fund in Paris as a funnel for many of its foreign exchange transactions; the dollars Cambodia receives under the United States aid program are not kept in the Fund, but are controlled directly by the National Bank" (p. 191). At the time, the Cambodian National Bank's arrangements with the money market in France were administered by the Banque de France which was responsible for clearinghouse negotiations to establish the relationship between the riel and other global currencies (Steinberg, 1959). The French influence in the early part of the 20th century can also be discerned from Steinberg's observation that in 1959, the National Bank of Cambodia "regarded the large franc balance with which it began operations as partly an advantage and partly a weakness because any sudden fluctuation of the franc could importantly affect the backing of the riel" (1959, p. 191). The Cambodian national bank was also compelled to develop at least perfunctory accounting practices to administer the increasingly important flow of minerals and other valuable exports, and the level of indigenous accountancy being practiced can be discerned from Steinberg's report that, "To minimize such vulnerability the bank hopes to build reserves of other transferable currencies -- for example, from an expansion of exports to the dollar and sterling areas. The bank has also bought small amounts of gold; all gold produced in Cambodia must now be sold to the National Bank" (1959, p. 191).
Moreover, besides this French influence at the international level, Yapa (2000) also reports that many French-based companies in Cambodia were following conventional French accounting practices in administering their own corporate affairs until the 1970s. In this regard, Yapa notes that during the period from 1953 to 1970, "The stage the development of accounting in Cambodia would seem to fit the argument about the relationship between the colonial powers and the development of accounting practice" (p. 10). Other indications of the French influence on the accounting profession and practices in Cambodia during this 17-year period include Yapa's report that, "Despite the lack of accounting and auditing standards during this period it seems that a number of French-based and a few other international companies that operated in Cambodia produced and returned their financial statements to their parent company" (2000, p. 10) Nevertheless, these localized protocols did not rise to the level of even a modest formal accounting profession in Cambodia that could be described in the same terms that apply to Western enterprises. In this regard, Yapa also emphasizes that, "Clearly each of these complied with the appropriate accounting standards for their home jurisdiction. There was no evidence of the emergence of a recognisable accounting profession" (2000, p. 10).
In the years that followed between 1950 and the 1970s, Cambodia pursued various economic development initiatives following many conventional policy measures that were commonplace during this period in history, including efforts to develop an accounting profession that was sufficiently trained and educated in accounting to provide the accounting services needed during its post-colonial development (Yapa, 2000). During the period between 1975 and 1979, the Khmer Rouge regime, though, headed by the notorious Pol Pot, murdered or otherwise disposed of the majority of the professionals in Cambodia including accountants, thereby destroying most of the struggling country's...
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