The strap-line to the WCOA 2010 event is ‘accountants: sustaining value creation’. This is a terrific message, very much in line with CIMA’s own mantra and one that we as an organisation support wholeheartedly. The changing dynamics arising from the emergence of major Eastern economies makes the venue choice for WCOA of Kuala Lumpur, situated as it is mid-way between two of the largest and fastest-growing economic players – India and China, particularly symbolic.

In the wake of the recession in the West and tremendous growth in the East, today saw the official launch of a report: Acounting Trends In A Borderless World from CIMA that demonstrates how finance professionals can play a central role in restoring trust in business.

Over a fabulous lunch of local Malaysian cuisine, in-between forkfuls of mouthwatering local delicacies the attendees heard how the report has discovered that, in both the East and West, there is a strong trend towards accountants embracing more responsibility in increasingly strategic roles. Accounting trends in a borderless world is a groundbreaking report that gives a very pertinent and accurate reflection of the borderless world that we now live in.

Based on a survey of over 5,000 senior financial personnel, the report monitors global trends and, more specifically, makes comparisons between contemporary developments of the profession in the East and the West.

One of the key findings in the report is that in the East, accounting operations take up the greatest proportion of accountants’ time. In the West however it is management accounting. Accountants in the West are already focusing more of their time on roles that add more value.

Accountants in the West report a greater focus on management support while in the East they spend significantly more time on external reporting than their Western counterparts. Both expressed a desire to move in the direction of doing more management support type roles, and less routine accounting work.

In noting the various differences between East and West, the study asked whether the Western model or the Eastern one would predominate or whether there would be some sort of melding of the two. My fellow speaker at the launch, Christina Foo, Vice President of Malaysian Institute of Accountants (MIA) gave some great insight to this issue. “Whether it is through the informal approach of the East or the rules-based values of the West, long term value creation must be the goal” she said. “We should all promote values of honesty and integrity. We must endeavour to build loyal and long-lasting relationships.”

Christina adeptly described how the question of governance based on the Western model has merits (namely accountability and transparency), whereas in the Eastern model, business dealings rely on trust and meaningful personal relationships. “Trust creates loyalty and respect for each other’s role and promotes a family type environment” she said. “It’s the reason why family businesses in Asia will often grow into large conglomerates. Our forefathers were practicing sustainable value creation long before it became en vogue.”

Wherever they may be from, in my view, a financially qualified person who is persuasive in their business and able to challenge appropriately, is unbeatable and this report promotes a more macro perspective on business. To quote Christina, “accountancy is the most versatile profession in the modern world. Accountants are well placed to be strategic business partners to the board and the senior management team anywhere in the world.” We must all remember that accountants, as well as manipulating spreadsheets, also need a range of other skills and this report conveys that message very clearly.

Download the full report here.