ASEAN INTEGRATION:

IS THE
ACCOUNTANCY
PROFESSION READY?
Technical Session 2
Regulators 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

ASEAN COMMUNITY

ARE WE READY
FOR THE ASEAN
INTEGRATION?

ASEAN Political Security

Community
ASEAN Economic
Community
ASEAN SocioCultural
Community

(MEANING :

ADDITION,
MIXING,
INCORPORATION,
COMBINATION
AMALGAMATION
ASSIMILATION)
3

OBJECTIVE

ASEAN Economic Community 2015

Transform ASEAN into a stable,

prosperous, and highly competitive
region with

Regulatory harmonization
Reduction of trade barriers
Promotion of labour mobility

Equitable economic development

Reduced poverty and
Socioeconomic disparities

ROLE OF THE ACCOUNTANCY PROFESSION

ROLE OF THE ACCOUNTANCY PROFESSION

A properly functioning
accountancy profession is
critical to:
Public sector sustainable
public financial management
reforms and improved
governance,
accountability and
transparency

A properly functioning
accountancy profession is
critical to:
Private sector development
investor
confidence and attracting
FDI WB Report 2014

WB Report 2014

Key Challenges of the Guardians of the Treasure

House of ASEAN

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.

The significant
development gap across
ASEAN countries will
increasingly constrain
economic development unless
it is addressed.

But lesser developed countries face a

daunting task in accounting and auditing
reform given their capacity constraints.
(WB 2014)

10

What areas does the report cover?

Current Status of the Accounting and Auditing Profession in

ASEAN Countries by the World Bank Sept. 2014
snapshot of current status

Accounting Education
Entry Requirements for
Professional Accountants and CPD
Professional Independence and
Ethics Requirements
AFAs Mandate and Role
National PAO Development

key areas of difference and

constraints to closing the
development gap
regional harmonization
and coordination of
capacity building would be
beneficial

11

12

What are the key findings Accounting

Education?

What are the key findings in Accounting

Education?

Figure 2. Minimum credit hours to obtain an accounting degree /

inclusion of international standards in the curricula

Figure 3. Accounting graduates per year, by country

13

What are the key findings in Entry

Requirements?

14

What are the key findings on Ethics?

Table 2. Comparison of entry and CPD requirements for the accounting

profession
15

Table 3. Ethics and rotation requirements for auditors

16

What are the key reporting requirements?

What are the key findings on Professional

Accountancy Organizations?

Figure 1. Approximate number of professional accountants by country

Table 4. Factors that affect a companys accounting, audit, and financial

reporting requirements

17

18

What are the key recommendations?

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.

19

Increased harmonization and coordination of capacity building at a

regional level would be beneficial
Consensus needed on regional capacity development priorities
necessary
AFA and PAO can play a key role in facilitating increased
harmonization in the areas particularly coordination of capacity
building activities
Quality of Accounting Education, PIE Accountability
and SME financial reporting are important areas
A key decision is the extent to which the Accountancy profession
engagement in the PFM reform agenda
Sovereignty issues will need to be balanced with what is in the best
interests of the ASEAN Economic Community

20

Key Findings on the Role 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
21

Let us not follow the Little Princes

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.

22

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!
23

24