This unit looks at the development of the accounting profession

around the world.

BEFORE YOU READ ':S;;'

Discuss these questions.

1 Which professional accounting organisations operate in your country?

Are they local or international?
2 What advantages are there to both employers and employees in having links with professional
accounting bodies?

EI Understanding the main points

Read the article on the opposite page and answer these questions.
Identify the part of the article that gives this information.

1 How are some of the UK accounting bodies helping to develop the accountancy profession
overseas with local institutes?
2 What does ACCA think about the fact that some of the accounting organisations it is
supporting will most probably become its competitors in the future?
3 As well as accountancy, which other area of training has CIMA identified as being
essential to overseas accountants?
4 Robert Jelly mentions that there is a growing need for a common set of accounting qualifications
around the world. What reasons does he give for this?
5 Which set of accounting standards is in the process of being adopted by over a hundred countries?
6 What benefit would a well-established accounting profession bring to developing economies?
7 In spite of UK help, what is the most important factor in the development of a strong accounting
profession in developing countries, according to Neil Wallace?

D Understanding details
Read the article again and answer these questions.
Identify the part of the article that gives this information.

1 What proportion of ACCA's members are registered outside the UK?

2 Which programme do CIMA and ICAEW's projects in Bangladesh belong to?
3 Which Bangladeshi institute is CIMA helping?
4 In which developing regions is the accountancy profession becoming more important?
5 What sort of jobs do the visiting Bangladeshi accountants have?
6 What does Anton Colella, Chief Executive of ICAS, want to see happening in Eastern Europe?
7 Which organisation has been established in Kazakhstan?

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 UNIT 2 ~~ ESTABLISHING THE PROFESSION WORLDWIDE

• •
fO eSSlOna les: es
55 the process of being adopted by more
than 100 countries . The group includes
academics, regulators and government
officials. 'They are not simply leaming
the technical side, they are learning
60 how to teach it and pass it on ,' says Mr
Soare. The aim is to develop a stronger
accounting profession in the country to
help build a stronger economic system.
G Another exciting area is Eastern
65 Europe and central Asia. The Institute
of Chartered Accountants of Scotland
(ICAS) is working in Armenia and
Kazakhstan to bring together Russian
speakers from acro s the region to
70 help develop the profession and to
discuss IFRS.
H 'It is a fast-developing part of the
world. We have a good reputation in
by Jennifer Hughes D Both the ICAEW and the Chartered the region due to the development work
Institute of Management Accountants 75 we have already done there ,' says
A In Chartered Accountants ' Hall, there (CIMA) are working on World Bank Anton Colella , Chief Executive of
is a memorial to past presidents of the 30 projects in Bangladesh to develop ICAS. 'We want to build strong
Institute of Chartered Accountants in professional services to support its national institutes. The demands and
England and Wales (ICAEW). Names economy and businesses. CIMA is pressures on the global profession
5 such as Waterhouse , Coopers, Peat and studying the accounting profession 80 are increasing, particularly in develop-
Young display the largely British roots and the operations of the Institute of ing nations, where IFRS and inter-
ofthe profession. 35 Cost and Management Accountants national audit standards are proving
B But these days , the ICAEW and of Bangladesh. very challenging.'
other UK accounting bodies are look- E CIMA is also establishing joint ven- I But all the institutes insist the UK
10 ing overseas . ' Accountancy is an tures with a number of overseas 85 profession is not looking for world
international business,' says Vernon institutes and looking at local language domination. 'There is always going to
Soare of the ICAEW. 'We are develop- 40 training. 'The main part of our growth be a need for local control. You need
ing to support our members and the strategy is employer-led. We listen to to understand local customs, to build
firms they work in .' Today, there is them carefully. There has been a huge groups of profess ionals who have
15 much talk of partnerships with local shift in the finance function . Finance SKl loyalty to each other and to their
institutes and developing an interna- processes are being outsourced [to a local profession ,' says Neil Wallace,
tional reputation for the qualifications 45 variety of countries], so there is an Director of International Services at
they offer. increasing need for common qualifica- ICAS. ' Take Kazakhstan. It now has
C Over half of the Association of tions around the world ,' says Robert a chamber of auditors, and the profes-
20 Chartered Certified Accountants' Jelly, Director of Education at CIMA. 95 s ion is developing along side the
(ACCA) 122,500 members are regist- F In the UK , the ICAEW has hosted economy, something all developing
ered overseas. ACCA feels that work 50 Bangladeshi accountants working countries need.'
that helps the standing of the profession towards the Institute 's certificate in
across the world helps its members ,
25 even if it is supporting bodies that will
International Financial Reporting
Standards (IFRS). These are the
FT
eventually become competitors. accounting rules now accepted or in

II How the text is organised

What do these words refer to in the article?

1 they (line 18) 4 them (line 42)

2 its (line 24) 5 these (line 53)
3 its (line 31) 6 it (line 72)
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UNIT 2 ~~ ESTABLISHING THE PROFESSION WORLDWIDE

VOCABULARY . '?'~;;."

II Word search
Find words or phrases in the article which fit these meanings.

1 An area of work that needs advanced education and specific training (paragraph A)
accountancy p..... .. .
/

2 Official organisations which represent people of a particular profession (paragraph B)

a) accountancy b...... .. b) accountancy i... .... .
3 The set of new accounting rules that over 100 countries have adopted or are in the process of adopting
(paragraph F)
I........ F........ R. .... ... s....... .
4 A person or organisation chosen by the government to ensure that an industry or system operates
legally or fairly (paragraph F)
r. . . . . . . .
5 Someone who has a responsible position in a government organisation (paragraph F)
9........ 0 ....... .

6 Official body of auditors, who check that a company's financial report is true and honest (paragraph I)
c ........ of auditors

III Vocabulary development

Find different forms of the word develop in the article and use them to complete these sentences.

1 ICAS is working in Armenia and Kazakhstan to help .... .... the profession.
2 Several institutes have been doing .. ...... work in Eastern Europe.
3 ........ nations need a strong accountancy profession.
4 Accountancy is a fast-........ profession.
5 There is much talk of ........ an international reputation for the qualifications that
overseas institutes offer.

II Sentence completion
Use words and phrases from Exercises A and B to complete these sentences.

1 In the future, many accountants in developing countries will produce company accounts
which comply with ..... ... .. ...................... .
2 Although developing countries need international help to establish the ........... .... .
in their countries, success will depend mainly on having strong local control.
3 Many ................ are working hard with these countries to develop local qualifications
with an international reputation.
4 Some countries even have a ........ of ........ for the first time.
5 It is equally important that their ........ , who are responsible for making sure that an industry or system
works legally or fairly, have a good understanding of accounting.
6 The international accountancy profession is .... .... fast.
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 UNIT 2 H ESTABLISHING THE PROFESSION WORLDWIDE

iii Word partnerships

Match the sentence halves to make sentences similar to ones in the article.

1 ICAEW is developing a) joint ventures with a number of overseas institutes.

2 ClMA is studying b) its members and the firms they work in.
3 CIMA is establishing c) to discuss I FRS.
4 Finance processes are d) the accounting profession of Bangladesh.
5 The demands and pressures on the e) being outsourced overseas to a variety of countries.
global profession
6 ICAS is bringing Russian speakers together f) are increasing.
7 International audit standards are g) in developing nations.
proving challenging

II Understanding expressions
Choose the best explanation for each phrase from the article.

1 'The main part of our growth strategy is employer-led.' (lines 40-41)

a) followed by employers
b) heavily influenced by employers
2 'There has been a huge shift in the finance function.' (lines 42-43)
a) a long working period
b) a big move
3 'Finance processes are being outsourced .. .' (lines 43-44)
a) carried out by another company
b) carried out by another country
4 'These are the accounting rules now accepted or in the process of being adopted by more
than 100 countries.' (lines 53-56)
a) used for the first time
b) changed

1 In the article, several UK accounting bodies are mentioned. Do an Internet search to find out what they
are doing in your country or a country you are interested in. Give a short presentation.
2 What benefits can a strong accounting profession bring to developing countries?
Think about international trade and stock markets, local economies, companies and employees.
Write a short report to explain your ideas.

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