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ASEAN INTEGRATION:

IS THE
ACCOUNTANCY
PROFESSION READY?
Technical Session 2
Regulator’s Forum (Joint with nACPAE)
Grand Ballroom, Hotel Intercontinental Manila, Makati City
July 15, 2015

By: JOSEFE C. SORRERA-TY


Past PICPA National President (2012-2013)
AFA SECRETARY GENERAL
ARE WE READY
FOR THE ASEAN
INTEGRATION?
(MEANING :
ADDITION,
MIXING,
INCORPORATION,
COMBINATION
AMALGAMATION
ASSIMILATION)
ASEAN COMMUNITY
 ASEAN Political
Security
Community
 ASEAN
Economic
Community
 ASEAN Socio-
Cultural
Community
OBJECTIVE
Transform ASEAN into a
stable, prosperous, and
highly competitive region
with
 Equitable economic
development
 Reduced poverty and
 Socio-economic
disparities
ASEAN Economic Community 2015

Regulatory harmonization
Reduction of trade barriers
Promotion of labour mobility
ROLE OF THE ACCOUNTANCY PROFESSION
•A properly
functioning
accountancy
profession is
•critical to:

•• Private sector
development –
investor
•confidence and
attracting FDI WB Report
2014
•A properly
functioning
ROLE OF THE ACCOUNTANCY PROFESSION
accountancy
profession is
•critical to:
•• Public sector –
sustainable public
financial
management
reforms and
improved
governance,
•accountability and
Key Challenges of the Guardians of the
Treasure House of ASEAN
Most ASEAN countries
have adopted and are
implementing International
Accounting and Auditing
Standards in the private
and public sectors.

But lesser developed


countries face a daunting
task in accounting and
auditing reform given their
capacity constraints.
(WB 2014)
Key Challenges of the Guardians of the
Treasure House of ASEAN

•• The significant
‘development gap’
across ASEAN
countries will
increasingly
constrain economic
development unless
it is addressed.
Curre nt S ta tus of the Ac c o unting a nd Auditing
Pro fe s s io n in AS EAN Co untrie s by the World Ba nk
S e pt. 2014

• snapshot of current status

• key areas of difference and


constraints to closing the
‘development gap’

• regional harmonization
and coordination of capacity
building would be beneficial
Wha t a re a s do e s the re po rt c o ve r?

• A c c o u n tin g E d u c a tio n
• E n try Re q u ire m e n ts
fo r P ro fe s s io n a l
A c c o u n ta n ts a n d C P D
• P ro fe s s io n a l
In d e p e n d e n c e a n d
E th ic s Re q u ire m e n ts
• A FA’s Ma n d a te a n d
Ro le
• Na tio n a l PA O
De v e lo p m e n t
Wha t a re the ke y finding s in Ac c o unting
Educ a tio n?

Fig u re 2 . Min im u m c re d it h o u rs to o b ta in a n
a c c o u n tin g d e g re e / in c lu s io n o f in te rn a tio n a l
s ta n d a rd s in th e c u rric u la
Wha t a re the ke y finding s Ac c o unting
Educ a tio n?

Fig u re 3. A c c o u n tin g g ra d u a te s p e r
y e a r, b y c o u n try
Wha t a re the ke y finding s in Entry
Re quire me nts ?

Ta b le 2 . C o m p a ris o n o f e n try a n d C P D
re q u ire m e n ts fo r th e a c c o u n tin g p ro fe s s io n
Wha t a re the ke y finding s on Ethic s ?

Ta b le 3. E th ic s a n d ro ta tio n
re q u ire m e n ts fo r a u d ito rs
Wha t a re the ke y re po rting re quire me nts ?

Ta b le 4 . Fa c to rs th a t a ffe c t a c o m p a n y ’s
a c c o u n tin g , a u d it, a n d fin a n c ia l re p o rtin g
re q u ire m e n ts
Wha t a re the ke y finding s on
Pro fe s s io na l Ac c o unta nc y Org a niza tio ns ?

Fig u re 1 . A p p ro xim a te n u m b e r o f p ro fe s s io n a l
a c c o u n ta n ts b y c o u n try
Key Findings in Public Sector
Accounting and Auditing:

MANY PAOS DO NOT HAVE A MANDATE OR ANY


AUTHORITY OVER THE PUBLIC SECTOR AND THE FOCUS
OF WHAT THEY CURRENTLY DO IS SOLELY ON THE
PRIVATE SECTOR. OFTEN PAOS DO NOT HAVE WELL
DEVELOPED RELATIONSHIPS WITH THEIR PUBLIC SECTOR
COUNTERPARTS RESPONSIBLE FOR FINANCIAL
MANAGEMENT, ACCOUNTING STANDARDS AND AUDIT
STANDARDS.
Wha t a re the ke y
•re
In cc reoamme
s e d h anda
rm o n tio
iz a tions
n a?n d c o o rd in a tio n o f
c a p a c ity b u ild in g a t a re g io n a l le v e l w o u ld b e
b e n e fic ia l
• C o n s e n s u s n e e d e d o n re g io n a l c a p a c ity
d e v e lo p m e n t p rio ritie s n e c e s s a ry
• A FA a n d PA O c a n p la y a k e y ro le in
fa c ilita tin g in c re a s e d h a rm o n iz a tio n in th e
a re a s p a rtic u la rly c o o rd in a tio n o f c a p a c ity
b u ild in g a c tiv itie s
• Qu a lity o f A c c o u n tin g E d u c a tio n , PIE
A c c o u n ta b ility
a n d SME fin a n c ia l re p o rtin g a re im p o rta n t
a re a s
Ke y Finding s on the Ro le of AFA:
AFA is clearly already a key
regional accounting
organization that has been
formally
recognized by the ASEAN
Secretariat. It has also
commenced
• discussions with
IFAC
about becoming a Recognized
Regional Organization and
recognizes the importance of
achieving such official
international recognition.
OTHER IMPORTANT
FACTORS TO
CONSIDER IN OUR
READINESS FOR
INTEGRATION:

• LANGUAGE

• CULTURAL SENSITIVITY
Let us not follow the Little Prince’s
Accountant who spends his days
working over his books, counting
everything up, claiming ownership of
all that can fit in the ledger, and failing
to see that we live in a whole, wild
universe filled to the brim with stars
somewhere in the midst of which one,
unique rose lives on a planet and
calls out for love.
MAY WE BE ABLE TO SEE BEYOND
THE ECONOMIC FIGURES……

MAY WE BE REMINDEND THAT


THE ASEAN INTEGRATION IS
ABOUT A CARING AND
NURTURING
COMMUNITY.

THANK YOU!