IMA^® (Institute of Management Accountants) and IFAC (International Federation of Accountants) today released their report, “Diversifying Asia-Pacific Accounting Talent: A Critical Imperative to Achieve Transformational Outcomes.” As a joint effort, the report draws attention to diversity, equity, and inclusion (DE&I) issues in the Asia-Pacific region and presents remedies to the gaps identified.

The report includes findings from a late-2021 online survey of more than 1,100 current and former Asia-Pacific accounting professionals and interviews of 32 accounting practitioners and academics who varied in experience level, country, gender, ethnicity, and age. The survey identified 95% of the respondents as current or former accounting profession members in Indonesia, the Philippines, Singapore, Vietnam, Australia, and Japan.

The regional DE&I research focuses on two primary demographic areas: gender and ethnicity. In the report, 47% of the respondents identify as female; data on minority ethnic groups were primarily taken from Indonesia, the Philippines, Singapore, and Australia, where 44% of respondents self-identified as a member of an ethnic minority group.

The study found that inequities and exclusive behaviors in the profession are the main reason for the underrepresentation of diverse talent at senior levels. The data also revealed disparities throughout countries in the Asia-Pacific region. For instance, the Philippines had the highest percentage of respondents viewing the profession as equitable (91%) and inclusive (90%). Amongst the Southeast Asian countries included in the report, Indonesia is ranked second at 82% and 81%, followed by Singapore (78% and 80%) and Vietnam (73% and 77%).

"Social and cultural influences have significant impacts on accounting in the Asia-Pacific region just as they affect the workplace. As some of the countries in our sample are dominated by a single race (such as Japan), data on minority ethnic groups come primarily from Australia, Indonesia, the Philippines, and Singapore. Respondents who identified as members of minority ethnic groups from these countries pointed to firsthand experiences of inequitable and exclusive treatment negatively affecting their advancement in the workplace. Hence, it is important for businesses and the profession to implement focused efforts to close the diversity gap and attract and retain talent. Our research revealed these efforts are integral to our profession surviving, transforming, and thriving.” said Josh Heniro, Senior Director, IMA Southeast Asia & Australasia.

A section of the report focuses on a deep dive of six countries in the Asia-Pacific region – Indonesia, Philippines, Singapore, Vietnam, Australia, and Japan, offering a high-level view of DE&I based on resources such as existing literature; active DE&I initiatives; an analysis of survey responses; and insights from one-on-one interviews of current and former accounting professionals. 

Interviewees also indicated that despite previous initiatives to attract, retain, and promote the next generation of professional leadership, these efforts have not brought adequate results. The status quo is unlikely to contribute to closing the diversity gap at senior levels. Organizations and the profession are already on transformation journeys to meet environmental, societal, and business demands. Expansive targeted efforts are required to achieve the transformational outcomes needed. The report made suggestions for DE&I action in the second part in four primary categories: awareness, attraction, promotion, and accountability. 

"The underrepresentation of minority ethnic groups in leadership positions is not due to a lack of talent, but rather unequal treatment rooted in biases against already marginalized groups,” said IFAC CFO Russell Guthrie. “It is up to professional accountants to leverage the solutions suggested in this report to remedy existing DE&I gaps and therefore ensure the longevity of our profession and its success.”

View the full report here: https://www.imanet.org/en/About-IMA/Diversity-and-Inclusion/Diversity-Equity-Inclusion-Research

About IMA^® (Institute of Management Accountants)
IMA^® is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA^® (Certified Management Accountant) and CSCA^® (Certified in Strategy and Competitive Analysis) programs, continuing education, networking, and advocacy of the highest ethical business practices. Twice named Professional Body of the Year by The Accountant/International Accounting Bulletin, IMA has a global network of about 140,000 members in 150 countries and 350 professional and student chapters. Headquartered in Montvale, N.J., USA, IMA provides localized services through its four global regions: The Americas, Asia/Pacific, Europe and Middle East/India. For more information about IMA, please visit www.imanet.org.

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC has 180 members and associates in 135 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

The focus on auditor’s reports has increased in the current environment as investors and other users of financial statements seek greater transparency from entities around the impacts of Covid-19 in the financial statements, as well as greater transparency into the audit.

The pandemic environment has led to measures such as social distancing which have changed the way that auditors and their clients perform their work. The environment is also significantly changing the economic realities for many entities and the change is continuing. Auditors need to be ready to react, while ensuring they maintain a commitment to audit quality and adherence to professional standards.

The COVID-19 pandemic has far reaching implications, with many people still comprehending and adjusting both personally and professionally. For the audit profession, the increased complexities of financial statement reporting and related risks and uncertainties, coupled with a rapid shift to virtual business operations and controls, have significantly challenged the delivery of audit engagements and necessitated virtual audits. But while much has changed, the commitment to audit quality and professional standards has not.

Event materials now available below

In December 2020, the IAASB approved its new and revised suite of quality management standards. They focus on quality and more robustly address firms’ governance and leadership, resources, communication, and monitoring and remediation. The standards are effective December 15, 2022.

During its March meeting, the PAIB Advisory Group discussed public sector priorities and challenges for the profession across jurisdictions which vary due to the differing maturity levels of the accountancy profession in the sector, as well as local or regional specific issues. Regardless of jurisdiction, consistent messages included the need for continued advocacy to promote the value of the public sector finance workforce to both the organizations they work for and to the individuals themselves as well as the importance of investing in the workforce and skills development.

At their core audit committees play a crucial role in ensuring the provision of highquality, decision-useful information about an organization to its investors and other stakeholders. But in the current environment, fulfilling this mandate is becoming increasingly more complex as organizations face greater uncertainty and risks and as audit committee oversight responsibilities continue to widen.

Circular thinking has implications on the application of accounting and financial principles, for example, depreciating assets until they have no value does not provide incentives for shifting to circular business models. Accountants need to be able to evaluate decisions beyond the financial value generated.

Countries around the world are searching for ways to shift capital investments into activities that support the transition to a more sustainable, low-carbon economy. To finance that massive change, investors and regulators are looking to the sustainable debt market as an important vehicle in raising funds to finance projects that advance environmental, social and governance (ESG) objectives.

“Trust and confidence in this relatively new, still evolving, and rapidly expanding market is critical,” said Kevin Dancey, CEO of the International Federation of Accountants (IFAC). “Like any financial innovation, there are challenges. Smart regulation, standardization and external verification or assurance are needed to protect investor interests, mitigate the risk of greenwashing and enhance transparency. Verifying the details of these bond programs—both pre-issuance and in the form of annual updates for investors—is an essential part of maintaining integrity. The accountancy profession can help drive progress.”

A new, comprehensive study that delves into the challenges and opportunities that exist in the sustainable debt market – Navigating the sustainable debt market: Enhancing credibility in an evolving market – is the result of a collaborative effort by IFAC and Chartered Professional Accountants of Canada (CPA Canada), who recruited PwC Canada to conduct the underlying research.

While the sustainable debt market has evolved significantly over the last few years, the study identified a number of issues that need to be addressed for the benefit of all capital market participants. These challenges include: the proliferation of voluntary, market-driven guidance; lack of a common understanding of what projects and activities qualify as “green” or “sustainable”; and inconsistent reporting, impact measurement, external review and assurance practices.

“Sustainability is increasingly being integrated into business, investment and financing decisions,” said Pamela Steer, president and CEO, CPA Canada. “Serving the public interest is core to the global accounting profession. It has a critical role to play in advancing sustainable finance. Collectively, the profession will continue to advocate for better policy, regulation and standards in this area and the study will help inform the dialogue.”

As part of the overall push to make sustainability front and centre for business, IFAC and CPA Canada welcome the establishment of the International Sustainability Standards Board (ISSB) by the IFRS Foundation. Globally accepted sustainability standards will enhance the credibility of ESG disclosures by improving their consistency and comparability and this will help mitigate some of the challenges identified in the report.

About CPA Canada
Chartered Professional Accountants of Canada (CPA Canada) works collaboratively with the provincial, territorial and Bermudian CPA bodies, as it represents the Canadian accounting profession, both nationally and internationally. This collaboration allows the Canadian profession to champion best practices that benefit business and society, as well as prepare its members for an ever-evolving operating environment featuring unprecedented change. Representing more than 220,000 members, CPA Canada is one of the largest national accounting bodies worldwide. cpacanada.ca

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of more than 180 members and associates in over 130 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.