The influence of the ASEAN economic community on the future of the management accounting profession

Abstract

Purpose The purpose of this paper is to explore the perceptions of Indonesian management accountants (MAs) regarding the Association of South East Asian Nations (ASEAN) – ASEAN economic community (AEC), an integration initiative in Southeast Asia, and its impact on their profession. More specifically, this study presents the perceptions on Indonesian MAs’ capabilities for facing challenges and opportunities in the AEC era, as well as identifies skills needed and training or development programmes that could support the achievement of qualification standards. Design/methodology/approach A survey was distributed and administered by using a convenience sampling method, resulting in 191 valid responses. The respondents’ answers were then analysed quantitatively using the descriptive and regression analysis. Findings It was revealed that the top skills needed in the AEC era, as identified by respondents, are soft skills, technical accounting capabilities and language skills. Language capabilities and soft skills were deemed as the most lacking, and training in these areas is considered important. Skill and knowledge upgrades are needed to reap the benefits of the opportunities offered by AEC to Indonesian businesses, especially among professional accountants who will join a bigger market not limited by borders. Research limitations/implications Findings from this study can guide executives and national leaders in developing the capacity and capability of Indonesian MAs to face competition in the ASEAN region. Originality/value Although research on the AEC has been conducted in previous studies, analysis of the impact on the MA cohort has not been much explored, which creates the research gap this study wishes to fill.

The Case Study Method in the Accounting Classroom

“…According to research, Indonesian accounting graduates lack relevant competencies (Adhariani, 2020;Phan, Yapa, & Nguyen, 2020;Prayanthi & Nelwan, 2019). The overemphasis on teaching theoretical content knowledge and the lack of support for accounting students to acquire competency beyond accounting knowledge is a typical critique of Indonesian accounting education (Setyaningrum, Muktiyanto, & Hermawan, 2015).…”

“…The overemphasis on teaching theoretical content knowledge and the lack of support for accounting students to acquire competency beyond accounting knowledge is a typical critique of Indonesian accounting education (Setyaningrum, Muktiyanto, & Hermawan, 2015). Practitioners and employers in Indonesia have emphasized the importance of changing the Indonesian accounting curriculum and pedagogy, particularly in terms of practical accounting (Pratama, 2015), information technology (Wulandari & Ali, 2019), communication (Adhariani, 2020), teamwork, and ethics (Prayanthi & Nelwan, 2019). It seems that accounting programs in Indonesia are still having trouble meeting the need for high-quality graduates (Utami, Priantara, & Manshur, 2011).…”

Quality of Accounting Knowledge and Its Impact on Profession

“…With the 2015 ASEAN Mutual Recognition Act, accounting professionals in ASEAN became free to pursue an active career outside their home country. Indonesia lost the opportunity to participate actively in global business due to its insufficient number of accountants (Adhariani, 2020). In other ways, various accountancy-related jobs and roles in Indonesia might be taken by accountants from abroad (Khomsiyah & Lindrianasari, 2017).…”

How Does Human Capital Spillover Inflow of Foreign Workers Affect Economic Growth?

“…The AEC implementation provides opportunities for highly educated foreign workers with special skills to migrate to Indonesia ( Chia, 2014 ; Adhariani, 2020 ; Elms, 2020 ; Ho, 2019 ), including Central Java Province. This led to a 7% increase in the economic growth of this region, thereby making it an attractive place for foreigners to work ( BPS Central Java, 2021 ).…”