TAKEAWAYS
From the clay tablets of Mesopotamia 7,000 years ago, where merchants tracked trade, debts and wealth with symbols, to the double-entry ledgers of Venetian trades in the 15th century, accounting has always been the invisible hand guiding societies. Across millennia, the tools have evolved from tablets to blockchain, but the essence of accounting has endured, nurturing trust, allowing transactions to flow, investments to grow and economies to thrive.
In the Asia-Pacific region, this ancient profession was reborn as colonial powers introduced western accounting practices. What began as a tool for empire management grew into the backbone of the region’s meteoric rise.
Today, close to 1.5 million accountants across Asia Pacific play a pivotal role in transforming some of the world’s fastest-growing economies. From its colonial roots to its modern-day global influence, the evolution of accounting here reflects the enduring power of a profession as it continues to innovate and adapt in an ever-changing world.
In the late 19th century, as European colonial powers expanded across Asia, they brought with them the tools of modern governance, including western accounting practices. Back then, accounting was less about building local expertise and more about keeping colonial administrations and foreign businesses in check. But these early “bean counters” were laying the foundation for something bigger.
Take Japan, for example. After the Meiji Restoration, it rapidly embraced western accounting practices to manage its burgeoning economy. These were not just bureaucratic moves, they were the beginning of a quiet revolution. Accuracy, transparency, and accountability – core values of accountancy – were slowly becoming the backbone of economic governance across the region.
World War II left much of Asia Pacific in ruins, but it also paved the way for unprecedented economic transformation. During this period, post-war Japan and the Tiger economies – South Korea, Hong Kong, Singapore and Taiwan – began to rise. These nations understood that to attract global trade and investment, they needed a robust accountancy profession that could guarantee transparency and financial integrity.
In Singapore, the founding of the Singapore Society of Accountants – now the Institute of Singapore Chartered Accountants (ISCA) – in 1963 was a critical milestone. At the first Accountants’ Conference in 1966, then-Minister Lim Kim San stood before the gathered accountants and declared their role as the “guardians of business ethics” in a young nation striving to punch above its weight on the global stage. The tiny island, still finding its footing as an independent nation, recognised that its ambitions to become a global financial hub needed trust, transparency, and sound governance.
India followed a similar path, with the Institute of Chartered Accountants of India (ICAI), founded in 1949, becoming a cornerstone of economic reform, especially when the country liberalised in the 1990s. Today, ICAI is known to be the largest professional body, with over 400,000 members and students making strides in 47 countries. In China, Deng Xiaoping’s economic reforms in the 1980s revived the accounting profession, recognising that without strong financial oversight, China’s economic ambitions would falter.
This was not just the evolution of a profession, it was nation building. Accountants became the architects of economic trust, laying the foundation for the region’s spectacular growth.
As the 20th century ended, Asia Pacific became increasingly intertwined with the global economy. The adoption of International Financial Reporting Standards (IFRS) was a key turning point. Australia led the way in 2005, with Japan and China soon following suit, each adapting IFRS to its unique context. Singapore and Malaysia quickly joined, integrating their financial systems into the global framework. ISCA played a crucial role in facilitating this transition in Singapore, training Singapore’s accountants to meet the demands of these new standards.
This professionalisation was not just about aligning with the west, it was about creating a new, globally competitive Asia Pacific. The adoption of IFRS allowed accountants from the region to become key players in multinational corporations, advising on cross-border investments and ensuring that reporting met the highest global standards.
At the same time, regional collaboration blossomed. The ASEAN Federation of Accountants, established in 1977, helped to harmonise accounting standards across Southeast Asia, promoting greater economic integration and cross-border trade. ISCA, as a founding member of the federation, has steadily strengthened its regional presence, positioning itself to become a leading accountancy body in this increasingly interconnected landscape.
Today, the region’s accountancy firms have grown in stature, with many expanding their operations globally. Firms from Australia, Singapore and India, among others, now serve clients worldwide, bringing Asia-Pacific expertise to international markets.
This global reach has been facilitated by the region’s adoption of IFRS and other international standards, which has made its accountants highly sought after in the global market. Accountants in the region are not just supporting growth at home, they are driving financial stability worldwide.
The formation of professional accounting bodies was a critical step in the professionalisation of accountancy across the region. These institutions set the standards for accounting practices, provided certification for accountants, and bridged local practices with global norms. Founded by just six accountants 60 years ago, ISCA now boasts 37,000 members, or roughly one in 160 Singaporeans.
Yet, even with this large talent pool, Singapore’s accountancy sector still faces a talent crunch, reflecting the high demand for accounting expertise. Notably, one in every four ISCA members occupies a top leadership role, including the C-suite, board position, and senior management. Accountants are no longer just bookkeepers: today’s accountants are reshaping their roles, branching into entrepreneurship, sustainability and financial forensics as the profession evolves.
Even with the looming rise of automation and artificial intelligence (AI), the accountancy sector continues to thrive. The profession is not new to technological disruption. The advent of computerised accounting in the 1980s revolutionised the field, making accountants more efficient with tools and software such as SAP Accounting. Today, AI and blockchain are poised to do the same.
ISCA sees opportunity for accountants to thrive with the help of AI advancement. To stay ahead, ISCA launched the Artificial Intelligence for the Accountancy Industry (AI for AI) initiative, setting aside S$2 million (US$1.53 million) to help accountants leverage emerging technologies. This initiative brings together experts from tech, academia, and business to explore how AI can elevate the profession, ensuring accountants remain indispensable partners in business.
Continuous learning and staying ahead of technological trends will be critical for the future of accountancy in Asia Pacific. The profession’s future is bright, but it will require collective effort to navigate the challenges ahead.
With ASEAN poised to be the fourth-largest economy in the world, the story of the accountancy profession in Asia Pacific is testament to the power of trust and transparency in driving economic progress. From its modest beginnings under colonial rule, accounting has evolved into a critical pillar supporting one of the world’s most dynamic regions.
As Asia Pacific continues to evolve, the accountancy profession will be at the forefront, guiding the region through the challenges and opportunities of a rapidly changing world. From digital technologies to AI and sustainability, the profession is ready to navigate the complexities of an increasingly interconnected global economy.
As we celebrate the 150th anniversary of The Accountant, we do not just look back on how far the profession has come, we look forward, knowing the journey is far from over. The accountancy profession in Asia Pacific has proven itself adaptable, resilient, and indispensable. In a world that is constantly changing, that is exactly the kind of leadership the global economy will continue to need.
Guo Binglian is Research and Insights Manager, ISCA. An edited version of this article was first published in The Accountant online, October 2024. Reproduced with permission.
© 2024 Institute of Singapore Chartered Accountants