In a Virtual Session on ‘Challenges of Global Economy’ ‘Abu-Ghazaleh’ and the International Arab Society of Certified Accountants Host Dr. Jawad Anani
AMMAN - The International Arab Society of Certified Accountants (IASCA) in collaboration with Talal Abu-Ghazaleh Knowledge Forum (TAG-KF) hosted the economic expert and former Deputy Prime Minister, HE Dr. Jawad Anani, in a virtual session entitled ‘Sub-Zero Economics’.
The seminar comes as a part of a series of specialized professional discussions organized by the Forum and the Society under the theme ‘Challenges of the World Economy’, through live streaming on their Facebook pages, with the aim of highlighting the biggest challenges facing the global economy and discussing with experts in interactive and direct virtual seminars.
During the discussion, Dr. Anani stated that according to international estimates relating to the Arab region, the most recent was a study conducted by the International Monetary Fund (IMF) whose outcomes were enhanced by the World Bank’s readings, Jordan’s economy is projected to experience a 4.3% decline during 2020, however; there is an expected growth of 2.2% according to the 2020 state budget draft submitted by Minister of Finance to the Parliament in October last year.
Dr. Anani added that the growth rate in Jordan’s economy; if the figures are accurate, would be much deeper than the decline in the growth rate of the Arab countries, pointing to other slightly different readings such as the ones provided by the World Trade Organization which indicate that the global economy is projected to decline then to rise at an estimated 6%, in comparison, to that, Jordan’s decline is slighter than what has been estimated by the IMF.
Meanwhile, Dr. Anani referred to the concept of ‘Sub-Zero Economics’, pointing out that the world experienced this phenomenon in different ways, explaining that it has gained momentum since the outbreak of Coronavirus (COVID-19) pandemic.
“Sub-Zero Economics refers to the phenomenon when both supply and demand curves in a given market intersect below zero. It is a strange and unexpected market development which forces the price of a commodity or an asset to be minus as a result of a movement along the curves or as a result of shifts in both supply and demand curves,” he said.
Dr. Anani alerted that such an event is not a rare one or an exception; valuable assets or holdings sold at negative prices is more prevalent than meets the eye. Accordingly, he called on auditors and accountants to take that into consideration when they evaluate the present value of an asset, assessment of true value of assets when mergers, take-overs or dismantling of companies.
He concluded that Sub-Zero situations are becoming integral parts of future economics, and the auditing firms should look into the matter when valuations are required.
It is worth mentioning that the International Arab Society of Certified Accountants (IASCA) aims to boost the sciences of accounting, auditing and other related subjects at the international level, as well as to maintain the professional independence of accountants, ensure their protection and apply professional supervision standards as a means of upgrading the accountancy and auditing professions.