Issue 2 Volume 20 April 2024 DRIVING BUSINESS SUCCESS PROFILE IFAC Accountancy Education’s Helen Partridge and Bruce Vivian THE MENTORSHIP PROGRAMME: A DECADE ON Mentor-mentee pairs on the impact the programme has had on their lives SECOND OPINIONS How can talent attraction be enhanced within the accounting profession? PLUS: The demand for finance professionals in a range of specialty areas is growing. A Plus looks at different career paths for accountants CHOOSE YOUR PLAYER
With a refreshed layout designed for easy browsing, the new A Plus website delivers a brand new experience to keep you up to date with the latest developments impacting the profession. Enjoy content on the revamped website carefully curated to help you catch up with Institute, accounting and business news and insights, as well as success stories that will inspire you. Whether browsing from your desktop or mobile devices, read up on the latest articles and seamlessly transition to articles on topics that interest you. As easy as it gets. Introducing the new A Plus website Pinpoint articles on specific topics, such as “sustainability” or “digital transformation” with the enhanced search function Bookmark articles of interest and read them later under the always present bookmark tab Find out what topics are covered at a glance with meta tags Consume content by the latest articles, issues, or under specific categories or topics, with options to view PDF or flipbook versions. ESG APLUS.HKICPA.ORG.HK
PRESIDENT’S MESSAGE APLUS DEAR MEMBERS April 2024 1 Roy Leung, President “ The plan reflects our commitment to staying at the forefront of industry developments and embracing emerging opportunities and we have identified three key areas of focus that will drive our efforts in the coming year.” In April, I had the honour of hosting a media luncheon. This event brought together representatives from prominent media outlets, providing an invaluable platform to share the Institute’s key focuses, initiatives, and achievements. The luncheon served as an opportunity to strengthen our relationship with the media and foster a better understanding of the vital role accountants play in driving economic growth and sustainability. We greatly appreciate the media’s support and coverage, which are instrumental in promoting a positive image of the accounting profession and raising awareness of our contributions to the public. One of the key purposes of the event was to share the Institute’s key focuses in the coming year, which were defined in the Strategic Plan 2024. This comprehensive plan outlines our vision, goals, and strategies for the year ahead, setting a clear direction for the Institute to further the development of the accounting profession and contribute to the sustainable development of Hong Kong. The plan reflects our commitment to staying at the forefront of industry developments and embracing emerging opportunities and we have identified three key areas of focus that will drive our efforts in the coming year. Firstly, attracting top talent to foster the growth and development of the profession. Secondly, reinforcing our communication and engagement with members to promote a positive image of the profession and strengthen our member support for members’ professional and personal development. And finally, laying the foundations for Hong Kong’s sustainability journey, ensuring our contribution to a more sustainable future. The government’s Vision Statement on Turning Obligations into Opportunities in Developing the Sustainability Disclosure Ecosystem in Hong Kong, issued in March outlines the development of a comprehensive ecosystem for sustainability disclosure in Hong Kong. As the sustainability disclosure standard setter, the Institute is committed to playing a significant role within the government’s vision and capacity building. You can read more about our response in this issue of A Plus and learn about our role. I also had the honour of taking part in the kick off ceremony for the 2024-25 Mentorship Programme. As we celebrate the 10th anniversary of our Mentorship Programme, I am filled with pride and gratitude for the success of this initiative. Over the past decade, our programme has provided invaluable guidance, support, and inspiration to aspiring professionals, connecting almost 1,900 pairs of mentors and mentees from diverse backgrounds and strengthening the profession. Three distinct pairs of mentors and mentees were interviewed in this issue. Their stories illustrate our commitment to fostering professional growth and development. I extend my heartfelt appreciation to all mentors and mentees who have contributed to the programme’s success. In addition to empowering members in their professional endeavours, the Institute is equally committed to supporting members’ well-being and fostering a sense of community. We hosted our first networking lunch, bringing together members from various sectors to exchange ideas and forge new connections. A barbeque gathering was also held for the first time, providing a relaxed atmosphere for members to unwind and strengthen their bonds. Furthermore, we celebrated the outstanding achievements of participants in the CPAMarathon Competition 2024 and AC Fun Run 2024 through a memorable prize presentation ceremony. These events not only promote a healthy work-life balance but also encourage camaraderie and a sense of belonging within our vibrant accounting community. In this issue of A Plus, we have dedicated several articles to different aspects of talent cultivation for the profession. From the IFAC’s views on global accounting education, and nascent, less travelled career paths, to different perspectives on attracting and retaining talents in the profession. Whether you are an employer, an aspiring accountant, or anything in between, I hope you will feel inspired after reading this issue. I encourage our members to stay connected and up-to-date with the Institute’s exhilarating events and news. If you haven’t yet, make sure you’re always in the know by following our social media channels (Facebook, Instagram, and LinkedIn) and downloading the HKICPA Events app today!
CONTENTS Issue 02 Volume 20 April 2024 NEWS 01 President’s message 04 Institute news 07 Business news FEATURES 08 Five unique career paths for accountants A Plus talks to Institute members in five specialized areas, highlighting a diverse range of career opportunities 14 It all starts with education: IFAC’s approach to boosting global accounting training IFAC Accountancy Education’s Helen Partridge and Bruce Vivian on tackling the talent shortage issue and their passion for education 22 Bonds built to last: Celebrating a decade of the HKICPA’s Mentorship Programme Three mentor-mentee pairs discuss the impact of the programme on their careers and personal growth SHORT PROFILES 32 Q&A with a PAIB Raymond Chiu, Director of Finance at Hong Kong Metropolitan University 33 Q&A with a PAIP Paxson Fung, Partner at Citylinkers 40 Young member of the month Cherry Tsang, Land Executive at the Lands Department COLUMNS 29 Thought leadership: Hendrik Rosenthal The Director – Group Sustainability at CLP Holdings Limited on the importance of new rules that define high-integrity in carbon markets 30 Second opinions How can talent attraction be enhanced within the accounting profession? Mentor-mentee pairs spanning different generations of the Institute’s Mentorship Programme on how the relationship led to career and personal growth 32 Q&A with a PAIB 33 Q&A with a PAIP 22 Bonds built to last: Celebrating a decade of the HKICPA’s Mentorship Programme
DRIVING BUSINESS SUCCESS About our name A Plus stands for Accounting Plus. It represents a profession that is rich in career options, stays relevant amid rapid changes, and adds value to business. This magazine strives to present the global mindset and varied expertise of Institute members – Accountants Plus. Editor Gerry Ho Email: gerry.ho@mandl.asia Managing Editor Jemelyn Yadao Contributor Gigi Wong Registered Office 2/FWang Kee Building, 252 Hennessy Road, Wanchai, Hong Kong Advertising enquiries Advertising Director Derek Tsang Email: derektsang@mandl.asia ISSN 1815-3380 President Roy Leung Vice Presidents Edward Au Stephen Law Chief Executive and Registrar Margaret W. S. Chan Director of Corporate Communications Rebecca Tam Publication Manager Michael Wong Editorial Coordinator Maggie Tam Office Address 37/F, Wu Chung House, 213 Queen’s Road East, Wanchai, Hong Kong Tel: (852) 2287-7228 Fax: (852) 2865-6603 Member and Student Services Counter 27/F, Wu Chung House, 213 Queen’s Road East, Wanchai, Hong Kong Website: www.hkicpa.org.hk Email: hkicpa@hkicpa.org.hk 42 Institute insights: The government’s vision statement and the Institute’s sustainability disclosure standards development A look at the Institute’s role within the government’s vision as the sustainability reporting standard setter in Hong Kong SOURCE 35 A landmark sustainability assurance standard: The Institute’s response A n overview of the Institute’s response to the IAASB’s Exposure Draft Proposed ISSA 5000 36 Distinction between debt and equity A summary of the Institute’s response to the IASB Exposure Draft on Financial Instruments with Characteristics of Equity (Proposed amendments to IAS 32, IFRS 7 and IAS 1) 38 Technical news 40 Young member of the month A Plus is the official magazine of the Hong Kong Institute of Certified Public Accountants. The Institute retains copyright in all material published in the magazine. No part of this magazine may be reproduced without the permission of the Institute. The views expressed in the magazine are not necessarily shared by the Institute or the publisher. The Institute, the publisher and authors accept no responsibilities for loss resulting from any person acting, or refraining from acting, because of views expressed or advertisements appearing in the magazine. ©Hong Kong Institute of Certified Public Accountants April 2024. The digital version is distributed to all 47,451 members, 13,500 students of the Institute and 2,183 business stakeholders every quarterly. 14 It all starts with education: IFAC’s approach to boosting global accounting training Interview with Helen Partridge, IFAC Chief Financial Officer and Director, Accountancy Education, and Bruce Vivian, Head of Accountancy Education, about what it takes to prepare future-ready accountants
The Institute has published its Strategic Plan 2024, which outlines the objectives for the Institute in the upcoming year in line with its mission to further the development of the accounting profession, provide support in meeting members’ needs, and contribute to the sustainable development of Hong Kong. Following a comprehensive review of the progress made under the previous plan, both the Council and the Institute have collaborated to update and refine the Strategic Plan. Council recognized that many key factors and considerations that were identified in previous years continue to be relevant but are evolving, which means a refinement of focus, objectives and actions is required. It therefore agreed to carry forward, with some refinements, seven strategic focuses under three key areas: deliver member value; standing and future of the profession; and be a sustainable and versatile Institute. In addition, the plan presents three major focuses for this year, and a diverse range of initiatives and actions aim to support these key areas, namely the enhancement of talent development; the reinforcement of communication and engagement with members; and climate change and sustainability. Meeting with ISSB The Institute’s leadership hosted Jingdong Hua, Vice-Chair of the International Sustainability Standards Board (ISSB), Zhengwei Zhang, Beijing Office Director and Special Advisor to Chair of the ISSB, and Jialing Si, Regulatory Affairs Manager for Asia for the ISSB on 25 March, to discuss the latest developments in Hong Kong as well as the Institute’s work on sustainability disclosure standard setting and capacity building. This meeting showcases our strong relationship and ongoing collaboration with local and international stakeholders as we work towards the appropriate adoption of ISSB standards in Hong Kong. As stated in the government’s vision statement on developing the sustainability disclosure ecosystem in Hong Kong also issued on 25 March, the HKICPA has a significant role to play as the sustainability reporting standard setter in Hong Kong. Read our press release to learn more. The Institute’s Chief Executive also attended a meeting between members of the Green and Sustainable Finance Cross-Agency Steering Group and ISSB on 27 March, to discuss and promote sustainability disclosures by companies and financial institutions in Hong Kong. An industry roundtable with around 20 representatives from listed companies and different financial services sectors was held to exchange views on the experiences in and the unique circumstances for entities making sustainability disclosures in Hong Kong and Asia. Read the Securities and Futures Commission’s press release on the event. Visit from CA ANZ The Institute received a delegation from Chartered Accountants Australia and New Zealand (CAANZ), including Ainslie van Onselen, Chief Executive Officer, Simon Grant, Group Executive – Advocacy and International Development, and Elizabeth Chan, Head of Hong Kong, on 18 April, to share updates on both institutions and explore collaboration opportunities. The meeting brought together key representatives from both organizations to discuss important matters in our profession. NEWS Institute news Business news 4 April 2024 Strategic Plan 2024 out now The Institute’s leadership andmanagement met with an International Sustainability Standards Board (ISSB) delegation, including Jingdong Hua, Vice-Chair of the ISSB, on 25March.
APLUS Topics covered included updates by the Institute and CAANZ on their latest initiatives, achievements, and future plans, highlighting their commitment to promoting excellence in the accounting profession. Collaborations between the Institute and CAANZ Hong Kong were also discussed to bring valuable opportunities for professional development and knowledge sharing. A crucial discussion revolved around innovative ideas and strategies to attract and retain top talent while ensuring the profession’s continued growth and relevance. The Institute’s response to 2024-25 Budget The Hong Kong government’s 20242025 Budget included a range of measures proposed by the Institute in its budget submission. The Institute welcomed the government’s budget for its pragmatic and balanced approach, taking into account the needs of different sectors of society, while pursuing further economic development, and aiming to maintain a fiscally prudent stance and transparency in public finances. The Institute believes that the budget gives further impetus to Hong Kong’s economic development, its vibrancy and attractiveness to investors and talent, as well as its status as a leading international financial centre. As Hong Kong is expected to face continuing challenges from the external environment, we hope the government will look to build on the measures in the budget to strengthen Hong Kong’s long-term economic development. Read the Institute’s press release to learn more. Networking lunch With the aim of fostering stronger connections between the Institute and members, the Institute held a networking lunch on 10 April, providing an opportunity for Council and the Institute management to engage with nearly 40 members. The networking lunch marked the first of many exciting member engagement activities planned for this year. 2024 Membership Renewal Reward Scheme To extend our deepest gratitude for our members’ continued support and loyalty, the Institute launched the 2024 Membership Renewal Reward Scheme. Eligible members who completed the 2024 membership renewal process on or before 31 December 2023 or meet the criteria may receive two complimentary continuing professional development courses. Access the 2024 Membership Renewal Reward Scheme webpage and log in until 18 May, and choose from the list of the available courses. Spring Cocktail Around 250 guests from the Government of HKSAR, Liaison Office of the Central People’s Government in the HKSAR, regulators, professional bodies, academia, and various business sectors, joined the Institute’s Council, Past Presidents, and committee members to celebrate the Year of the Dragon at the spring cocktails reception on 23 February. Check out the photos here. AC Fun Run 2024 Jointly organized by the Institute, the Association of Chartered Certified Accountants and the Society of Chinese Accountants and Auditors, the AC Fun Run returned in a physical format for the first time since 2019 on 25 February at Tseung Kwan O South Waterfront Promenade. Around 630 runners from the accounting profession and other professional bodies came together with their family and friends to compete in three fun-filled categories for charity. Secretary for Financial Services and the Treasury, Christopher Hui, was Guest of Honour. See the photos here. Council meeting minutes The abridged minutes from the January, February (Strategy Day) and March 2024 Council meetings are now available. The Institute leadership andmembers at the AC Fun Run 2024 at Tseung Kwan O South Waterfront Promenade. April 2024 5
NEWS Business US$148 billion Mainland China is expected to become the world’s largest personal luxury market, with a market size of US$148 billion in 2030, according a PwC report. The Mainland China and Hong Kong Luxury Market report shows that the global personal luxury market is recovering steadily and is expected to reach US$464 billion by 2025, and further increase to US$606 billion in 2030, growing at an average annual rate of 6 percent. Hong Kong’s gross domestic product (GDP) is expected to grow between 2.5 percent and 3.5 percent for the first quarter, maintaining moderate growth for a fifth consecutive quarter, Paul Chan, Hong Kong’s Financial Secretary, said on his blog. More than 800,000 tourists are expected to visit Hong Kong for China’s Labour Day holiday, he said, highlighting that more mega events will be held to boost the city’s economy. April 2024 7 61% The percentage of accounting and finance professionals who say that ESG is becoming increasingly important to their organization’s business model, according to research by the AICPA&CIMA. However, a gap remains between intent and practice. The Re-defining Finance for a Sustainable World white paper also found that 48 percent of accounting and finance professionals are currently measuring the impact of sustainable initiatives, and 45 percent are currently measuring the performance of these initiatives. The number of small- and mediumsized enterprises (SME) in Hong Kong, according to the government. In April, the Hong Kong Monetary Authority launched a new SME information platform on its website providing information on SME lending services offered by 11 major banks, SME service hotlines and loan products. It comes as many Hongkongers travel to Mainland China, leaving local retailers and restaurants with fewer customers. The percentage of chief financial officers who have taken on additional responsibilities, including environmental, social and governance (ESG); mergers and acquisitions; and corporate development duties in the past two years, according to a recent survey by Egon Zehnder, a leadership advisory firm, which surveyed nearly 600 CFOs worldwide. 82% APLUS 340,000 – Lee White, The International Federation of Accountants (IFAC) Chief Executive Officer. IFAC announced on 24 April its proposed changes to the International Education Standards that embed sustainability across aspiring professional accountants’ training. Key proposals include emphasizing working with experts and in multi-disciplinary teams; introducing key sustainability reporting concepts; referencing relevant sustainability reporting and assurance standards; and creating a new assurance competence area and learning outcomes. “Investors and other stakeholders need sustainability reports and disclosures that are on par with the high-quality, decision-useful financial reports that accountants already deliver. To be future-fit, accountants must develop the right competencies to meet this need.” 200 The approximate number of physical virtual asset over-the-counter (OTC) outlets, including ATMs, according to the Hong Kong government, which plans to tighten regulations on OTC digital asset trading. In February, the government published its public consultation on legislative proposals, which suggests to include OTC trade under the jurisdiction of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. Carlson Tong The Hong Kong Exchanges and Clearing Limited (HKEX) appointed Carlson Tong as Chairman to succeed Laura Cha, who retires after a six-year term. Tong, an Institute member and former vice president, was chairman of KPMG China and Hong Kong from 2007 to 2011, before serving as chairman of the Securities and Futures Commission from 2012 to 2018.
CAREER DEVELOPMENT Specialisms FIVE UNIQUE CAREER PATHS FOR ACCOUNTANTS With the advantage of a strong financial foundation, accountants are invaluable in a spectrum of different roles and settings. A Plus talks to Institute members in five specialized areas Illustrations by Gianfranco Bonadies 8 April 2024
APLUS THE IT AUDITOR As opposed to balance sheets and financial data, an IT auditor ensures a company’s technology and information systems are secure, efficient, and reliable. IT auditors are typically responsible for IT audit projects, which may include independent IT audit reviews and co-sourced internal audit projects. Audits are wide ranging, covering IT general controls, applications controls, governance reviews etc. Q&A with Caton Chong Caton Chong is ITAudit Manager in Cathay’s Group Internal Audit team. What does a typical day look like for you? A typical work day is full of meetings and discussions. Like other auditors, we need to work with and coordinate different stakeholders in the company. While a major contact point would be IT, we also work with the other business auditors and functions to identify the IT elements in the business process, as well as suggest relevant IT risk and control areas for further review. What did you study at university? I studied Business Administration at university, double majoring in InformationManagement (Information SystemAuditing) and Accountancy. Certified Information Systems Auditor (CISA) is a key certification for all IT auditors. If you want to advance in other technology areas, additional qualifications could be considered. For example, Certified Information Systems Security Professional (CISSP), Certified in Risk and Information Systems Control (CRISC), and Certified Ethical Hacker (CEH). What are the challenges of your role and work? Communication with non-IT background stakeholders on technology risks and issues. Providing more explanation, illustrations, and examples is often needed. What are the opportunities of your work? • As we know the business operations, controls, and technologies, we act as the bridge between the auditors and business units to provide innovative solutions in another angle. • We participate in digital transformation and process automation projects by helping to embed IT risk and control management. How did the QP prepare you for this role? It gives me “the big picture” and helps me to respond quickly to issues in my daily work, e.g. accounting treatments and its corresponding system and interface controls. Advice for CPAs • You don’t have to have a degree in engineering or computer science. Having a basic knowledge, interest and being willing to explore technologies is a good starting point. • Always stay on top of the latest technology trends and emerging risks. Key skills and knowledge • Actively listen and participate in discussions to quickly understand the context and provide recommendations. • Be curious and ask questions to the auditee and within the team, to brainstorm and identify unexpected risks. April 2024 9
CAREER DEVELOPMENT Specialisms THE DIGITAL ACCOUNTANT Advice for CPAs • Data analysis. • Being inquisitive. • An understanding of IT platform solutions. • Knowledge of the latest digital and technology trends. Key skills and knowledge • Develop your digital savviness. • For those interested in the loyalty space, use different loyalty programmes to get a feel for each programme’s value proposition and the different rewards, and evaluate them from a member’s point of view to see what makes them successful (or not). Digital accountants leverage data and technologies such as artificial intelligence (AI), blockchain and robotics to focus more time on value-added activities and strategic decision-making. They advise organizations about technology enabled business transformation. With a good understanding of the nature and mechanics of technologies and cloud-based solutions, and also the business risks involved (such as cybersecurity and data privacy), digital accountants stand at the unique intersection of tech and accounting to provide valuable insights to businesses. Q&A with Jason Wong JasonWong is Head of Finance of yuu Rewards, Hong Kong’s leading loyalty programme, launched by DFI Retail Group. What does a typical day look like for you? My team and I spend the first week of the month on month-end management reporting including key operational metrics (e.g. membership growth, member engagement and programme partner performance) for senior leaders, with support from our analytics team. The rest of the month is spent working alongside yuu Rewards leaders to help the programme achieve its strategic objectives. This could range from assessing and structuring new partnership deals with our business development team to measuring returns on marketing campaigns. I also prepare for and attend meetings, from regular meetings with DFI Retail Group leadership to ad-hoc meetings with legal, HR etc. My days can be busy but I do my best to make time to develop and nurture our young and motivated team of finance business partners. What are the challenges of your role and work? • DFI Retail Group is a big organization so stakeholder management requires time to build relationships and patience. • Juggling my time between the different business units and priorities to provide finance support to other digital initiatives within the group. What are the opportunities of your work? • Our finance teamworks very closely with our analytics team because, especially in the digital space, the financial story is much more powerful when combined with data. For example, our revenues are somewhat dependent on the number of yuu points issued and redeemed for a given month, so finance needs to understand the movements and drivers. • My team also provides finance support for earlystage digital initiatives. It’s great to not only be part of that journey but help set up systems and processes that will benefit those who come after us. • Taking an active role in business decision processes such as vendor selection, technology investments and organizational structure. 10 April 2024
APLUS THE FORENSIC ACCOUNTANT Forensic accountants assist courts, lawyers and clients to understand complex financial and accounting issues, and present that information, to identify illegal financial activities such as financial fraud, embezzlement, extortion and more. For forensic accountants, leveraging technology and data analytics is critical to performing thorough corporate investigations and compliance reviews. Q&A with Summer Li Summer Li is SeniorManager with Alvarez & Marsal’s Dispute and Investigation Team. What does a typical day look like for you? My job is project-based, and each day can be different – I typically kick off my day going through emails and catching up on the latest status of each project. Following that, I set out the tasks I need to complete during the day. For an investigation project, I would plan and design work procedures, conduct interviews, review accounting documents such as the bank statements and general ledgers, and prepare a report summarizing all the findings and recommendations. At the end of the day, I usually provide management or clients with an update on the findings or the latest developments. What did you study at university? I studied accountancy at university. While it is not mandatory, it is common for a forensic accountant to have a CPA qualification or certifications in fraud investigation, such as Certified FraudExaminer (CFE). What are the challenges of your role and work? • Working on multiple projects simultaneously, ensuring all timelines are met. • Explaining complex concepts or findings to clients in a concise and clear manner. • Staying up to date with the latest accounting standards. As a forensic accountant, it is essential for me to have a good grasp of the accounting standards in order to identify any irregularities or anomalies in financial statements. What are the opportunities of your work? • Fraud activities associated with AI have been increasingly emerging. Forensic accounting services would be needed to help to recover the assets and to minimize losses. • Hong Kong Stock Exchange will mandate all the Hong Kong-listed companies to make climaterelated disclosures in their ESG reports starting from January 2025. A forensic accountant could provide companies with a toolkit to navigate the complexities of ESG reporting and compliance. Therefore, the demand for forensic accounting services in this area is expected to increase. Key skills and knowledge • Have a genuine interest in working with numbers and the process of problem solving. • Have a mindset of continuous learning to keep abreast with the latest accounting standards and trends. Advice for CPAs • Communication skills. • Analytical skills. • Attention to detail – one small detail can make a big difference on the outcome of an investigation. April 2024 11
CAREER DEVELOPMENT Specialisms THE SUSTAINABILITY MANAGER Sustainability managers collaborate with different business functions to drive forward sustainability strategy and initiatives within a company or organization. With robust knowledge and comprehension of environmental, social and governance (ESG) topics, standards, frameworks, regulations and best practices, they identify opportunities to integrate sustainability into business strategy and daily operations. Q&A with Perlie Wong PerlieWong is SustainabilityManager at Jardine Matheson Limited. What does a typical day look like for you? My workdays are typically filled with meetings with different stakeholders, including meetings with group businesses to discuss their sustainability strategies, initiatives, challenges, and opportunities; cross-business meetings to exchange knowledge and perspectives on sustainability; brainstorm sessions or progress meetings with colleagues or external consultants on projects; and updates to senior management on the progress of different workstreams. Before starting the day or during lunch, I read sustainability-related news from news apps, LinkedIn, subscribed newsletters, etc. I also join various online webinars or listen to podcasts to learn about the emerging trends and market developments. How did the Qualification Programme (QP) prepare you for this role? I utilize financial accounting and reporting principles to ensure the completeness and accuracy of ESG data. Also, my knowledge and experience in enterprise risk management helps me understand the similarities and differences between climate and traditional risk management. This allows me to develop strategies that bridge gaps and integrate climate risks into the overall enterprise risk management process. What are the opportunities of your work? • Collaborating with various business functions has provided me with valuable insights on how sustainable practices can be integrated into existing processes. • Engaging with senior management and participating in strategy discussions has bolstered my strategic thinking abilities. • From a business perspective, businesses operating within the same value chain can join forces and exert influence on industry associations, develop sustainable industry standards, and drive changes in customer behaviour. Collective actions create positive environmental and social impact to the business and the community towards a lowcarbon economy. Advice for CPAs • Have a strong sense of curiosity as sustainability is constantly evolving. • Foster a collaborative mindset. • Educate yourself by pursuing a sustainability Master, courses, or certifications such as the EFFAS Certified ESGAnalyst (CESGA) or CFA ESG Investing Certificate. Key skills and knowledge • A solid understanding of ESG topics, standards, frameworks, regulations and best practices. • Strategic thinking and problem-solving. • Stakeholder engagement and communication. • Project management and presentation. • Data analysis and reporting. 12 April 2024
APLUS THE ENTREPRENEUR With their comprehensive knowledge on corporate finance, tax, auditing, and the world of business, accountants are well-equipped to become entrepreneurs – go getters who are willing to take risks and seize opportunities to bring ideas to fruition. Q&A with Victor Pang Victor Pang is Co-founder at Dress Green, which provides upcycling services to different organizations and individuals by hiring elderly, housewives and new immigrants. What does a typical day look like for you? No day is typical. Most of my time is spent on calls, meetings and messaging with colleagues, clients, prospects and business partners. Substantial time is also spent on preparing budgets and proposals for prospects. Sometimes, I conduct workshops, attend exhibitions, business networking, and other marketing events. At month-end, I arrange payroll, prepare financials and milestone reports for the funders, and reviewmonthly external communication materials like e-newsletters. What are the challenges of your role and work? • Limitation in financial resources is one of the key constraints, especially in the first few years when there is uncertain and unstable cash flow. There are fixed costs like rent and salaries that need to be paid to support the operation of the business. This brings a lot of pressure. • Scaling and growing the company. A considerable amount of my time is spent planning strategies to scale and grow the business, enhance production capacity, and build the team to handle the growing business, all while maintaining the quality of products and services. As it is difficult to grow the business alone, I have also spent time connecting with industry players for collaborations in order to leverage each other’s resources and facilitate business growth. What are the opportunities of your work? • Meeting and connecting with all kinds of people, from potential customers and partners, to industry experts, investors, and government officials. • Attending exhibitions, conferences, and business events both locally and internationally. • Giving presentations and pitches to diverse audiences, which pushes me to continuously develop my communication skills. • The learn-by-doing experiences, which allowed me to develop various skills – from digital marketing to understanding employment regulations and ESG. Advice for CPAs • Strong people skills. These skills are needed for building trusted relationships with others in order to secure different resources. It is important for hiring and managing a team, and creating an environment that will allow them to succeed. Key skills and knowledge • Be passionate and persevere. Entrepreneurship comes with a lot of unforeseeable challenges, as the market can change very quickly. You need to be prepared to fail and embrace those failures as learning opportunities. • Always connect with stakeholders and to gain valuable feedback. • Be adaptable. You have to be willing to pivot and change course based on changing conditions. April 2024 13
PROFILE Helen Partridge and Bruce Vivian Helen Partridge, IFAC Chief Financial Officer and Director, Accountancy Education, and Bruce Vivian, Head of Accountancy Education, talk to Jemelyn Yadao about ensuring that aspiring accountants are ready to face a changing world, and how education can support the profession’s attractiveness Accounting education is being tested like never before. With the changes in the profession, from emerging areas of work such as sustainability reporting and assurance, to the disruption of new technologies, a major challenge for education in the profession is staying relevant. The solution lies in bringing the academic community closer to those delivering accounting services, according to Bruce Vivian, Head of Accountancy Education, the platform for advancing accountancy education under the International Federation of Accountants (IFAC). “There is certainly a risk that curricula don’t keep pace with change. As the profession, we need to work together with the academic community to support them in maintaining their curricula, utilizing up-to-date case studies, and providing a positive and relevant introduction to the profession we all love. In response to the growing need for sustainability-focused skills, Vivian believes there is an opportunity for the accountancy faculty to collaborate with faculty from other disciplines, such as the sciences and the arts. “This can result in programmes that make aspiring professional accountants conversant in different sustainability matters, and enhance their critical thinking and creative skills.” He adds that the “one-size-fits-all” approach that the profession sometimes takes in the pre-qualification phase, placing more emphasis on how hard and long a student needs to study, also needs to change. “At times, this has meant we have failed aspiring professional accountants who may have had the professional competence we expected but were unable to complete our programmes or pass our examinations for reasons unrelated to competence,” Vivian says. “We don’t only want those who are good at exams, we want competent professional accountants who have diverse backgrounds and perspectives to serve the public interest. This means recognizing that a competent professional accountant may have started their studies in a different field before transitioning to accountancy. Or they may have preferred an apprenticeship route that allowed them to develop their competence on-the-job.” Photography by Xyza Cruz Bacani IT ALL STARTS WITH EDUCATION IFAC’s approach to boosting global accounting training 14 April 2024
APLUS April 2024 15
PROFILE Helen Partridge and Bruce Vivian Helen Partridge was named Chief Financial Officer of IFAC in 2023. Before joining the organization, she spent 16 years with PwC in audit, advisory and audit systems design in the United States and Asia Pacific. 16 April 2024
APLUS As the expectations on accountants are getting higher, Helen Partridge, IFAC’s Chief Financial Officer and Director, Accountancy Education, is mindful about the risk of curriculum overload. “As accountants are asked, in the public interest, to take on additional considerations such as sustainability or the use of artificial intelligence by us or our clients, the global accountancy profession needs to ensure that programmes to qualify don’t grow longer so that the length of time to qualify becomes a barrier for future accountants,” she says. The good news is that most of IFAC’s member organizations have been seen embracing the challenge of keeping education relevant for their members, developing and delivering continuing professional development programmes that reflect realworld complexity. “We are seeing courses, guidance and more being developed not only to support their own organizations but then to serve as inspiration or possible resources for other member organizations. It is IFAC’s privilege to facilitate and provide a forum for this knowledge sharing,” says Partridge. Vivian points out, however, that while larger firms tend to be at the forefront of up-to-date education programmes, adapting to change can be much harder for smaller professional accountancy organizations and small- and medium-sized practices (SMPs). “We work to support all our member organizations and the SMP community with access to resources that can help them and their members or staff adapt to change. This includes developing thought leadership and guidance materials, video content such as our EdExchange video series, and events like our annual EdExchange Summit,” he says. An evolving platform In 2019, Accountancy Education was launched as IFAC’s newmodel for advancing accountancy education in the public interest, following the dissolution of the International Accounting Education Standards Board (IAESB), which issued the International Education Standards (IESs). The new approach integrates the work of IFAC’s staff, a diverse group of volunteers and the wider education director community, allowing IFAC to be aware of challenges and opportunities facing accountancy education, and to determine appropriate responses, explains Vivian, who took on his role in early 2023. One of its advisory groups, the International Panel on Accountancy Education, draws individuals from professional accounting organizations, firms, academia and accountants in business. Partridge, who was a technical advisor on the IAESB, says she couldn’t pass up the chance to be involved with the new platform. “I had the opportunity to see how the development of the IESs formed the basis for all professional and aspiring professional accountants globally which fuelled my own passion in advocating for life-long learning,” she says. In the three years she has been at IFAC, she has seen the platform evolve. “In addition to maintaining the IESs and developing thought leadership, we have leaned into IFAC’s unique ability to convene stakeholders on a global stage to tackle some of the challenges our profession is facing,” Partridge says. With the need for a focus on sustainability in the IESs, based on stakeholder outreach, IFAC has committed to revising the standards. At the end of April, IFAC issued its first public consultation for proposed revisions to the IESs since the launch of the newmodel, with revisions addressing sustainability and assessment of professional competence. “The Hong Kong Institute of CPAs already provided input to this project during the information gathering phase, and we hope to hear your feedback on the draft revisions,” says Vivian. The Accountancy Education platform provides support for member organizations as they work to adopt and implement the IESs. “The HKICPA has shared with IFAC that your education requirements follow the latest IESs, and in some areas are more stringent,” says Vivian. As the learning journey for accountants never stops, the platform’s focus isn’t just the lead up to qualification, stresses Partridge. It also considers what is needed for seasoned accountants. “Topics such as sustainability, anticorruption, technology, and howwe support professional accountancy organizations in helping their members remain current in these areas is at the top of the agenda on many stakeholder discussions.” A complex issue The talent-shortage challenge has become a real problem in the profession, and is not unique to Hong Kong. Vivian notes that while in some countries, the profession currently has no problem attracting enough talent, the shortage of accountants is prevalent particularly in the well-developed world. “Some jurisdictions are actually growing while others are facing a talent shortage. I think in part this is because, as a profession we are being asked to take on more with areas such as sustainability. Trying to do more with the same talent pool is always going to result in a talent shortage,” points out Partridge. Root causes differ around the world but one of the common issues identified by IFAC relates to how some accounting courses, typically “ As accountants are asked, in the public interest, to take on additional considerations... the global accountancy profession needs to ensure that programmes to qualify don’t grow longer.” Amid increasing market demand for sustainability reporting and assurance, IFAC issued a public consultation on proposed revisions to the International Education Standards (IES) 2, 3 and 4 – Sustainability on 24 April. The planned revisions will address a need for a focus on sustainability in the IES. April 2024 17
PROFILE Helen Partridge and Bruce Vivian focused on the basics of accounting, paint a false picture of an accountant’s work and career. “Many young people walk away from accounting before they have even been exposed to what an accountant really does!” says Vivian. “We need to put our best educators and best educational content at the earliest moments that students encounter accounting classes, making sure we clearly show the critical role of professional accountants in organizations, capital markets, the economy and society. We need to show that the profession is not just for ‘numberspeople,’ but for people who want interesting, meaningful and productive careers that contribute to economic growth and sustainable development.” Telling better stories Another key issue they have seen is the perception gap, which, as Vivian explains, is the gap between how the profession is perceived by young people and the reality of the nature of the work. “We need to get better at telling the story about our profession and the unlimited opportunities it offers,” he says. Partridge agrees. She highlights that in United States, when she tells students she is an accountant, “it is almost always automatically associated with tax season and seen as boring and compliance-focused.” But when she explains her critical role as CFO and what that involves – taking on higher-order work; working with a multi-disciplinary team to measure and forecast carbon emissions; and the travel opportunities – there is much more interest. “I am sure there are many more stories like these that reach young students considering their career path, and these need to be told,” she says. Vivian highlights that IFAC recently published a short paper summarizing the challenge and recommending potential solutions to including how to close the perception gap, and how to ensure the profession is as accessible as possible. Both believe that addressing these staffing issues should be a combined effort. “We need every professional accountant, every educator, every leader, and even every parent who wants the best for their children, to be supporting these efforts. Certainly, organizations like the HKICPA can play a leading and coordinating role, but we don’t solve complex problems alone. We need to work together,” says Vivian. Partridge goes even broader, envisioning a world without professional accountants. “Imagine the risk this would pose to organizational strategies, financial markets and economies in general,” she says. “That is why all stakeholders should have a vested interest in helping professional accountancy organizations change this perception of a career in accountancy and the value it can bring.” Changing lives As someone who has worked as a teacher in a classroom of aspiring and qualified professional accountants, Vivian has experienced a fair share of “Aha” moments. “I remember a teacher once explaining that she loved teaching because of the “Aha” moments – those moments when a student finally grasps a challenging concept. I have been fortunate to experience some of those myself,” he says. But today, witnessing accountants complete the qualification journey is something he feels even more fortunate about. “I have heard countless stories of individuals who found a route out of poverty for themselves and their family, through the profession. I have learnt that as an accountancy education community, anything we do that increases the chances that such students complete that journey is life-changing.” Before joining IFAC in 2021, Vivian held roles in the public, private and non-profit sectors, including working in a Big Four firm, a supreme audit institution, an African regional organization, and a local church. He has also worked in different parts of the accountancy education eco-system, not only as a teacher but also overseeing practical experience programmes, developing learning programmes and designing assessments, he says. “Through these roles, I have had the chance to learn from true education experts and be reminded that my own learning journey never stops.” Partridge, who was named CFO in April 2023, previously worked at PwC Hong Kong/China where she was responsible for working with, and auditing, clients Bruce Vivian, Head of Accountancy Education, is a qualified Chartered Accountant in South Africa. Before joining IFAC, he was a senior manager of professionalization at the African Organisation of Englishspeaking Supreme Audit Institutions. “ We need to get better at telling the story about our profession and the unlimited opportunities it offers.” 18 April 2024
APLUS implementing U.S. Sarbanes-Oxley Section 404. She says that her experience in advising and auditing processes and controls and in systems design and development as an accountant at PwC U.S. helps her better work with her current finance team as they take on a technology transformation and her experience auditing business combinations and valuations help her to lead IFAC’s carbon strategy discussions. “My diverse career, both geographically and in the nature of the clients served, has elevated my appreciation of risks and their mitigants both current and future. But it is the opportunities presented throughout my career as educator, mentor and trusted advisor that have fuelled my passion for the education of our profession,” she adds. Partridge also manages IFAC’s sustainability and carbon footprint reporting. “The notion that our 50-person organization with such a huge remit could also start to develop a forecast for carbon emissions seemed beyond our reach until we started to break it down to the individual components and walk through the process to developing a forecast of such... The team started to see the possibilities and it was wonderful to be part of,” she recalls. Beyond education, Partridge is also a supporter of financial literacy, believing it to be a stepping stone into a profession that both her and Vivian so clearly love. “My own seven-yearold daughter is already learning the basics of checking versus savings accounts, budgeting and prioritizing – I enjoy her “Aha” moments also.” April 2024 19
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