Pathways to Growth: Changing

with the Times

Sidharta Utama
Member, International Accounting
Education Standards Board

Ikatan Akuntan Indonesia

Konvensi Nasional Akuntansi VIII
Bandung, 8 Desember 2017
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Outline

• Environmental Changes - Accounting Profession

• Expected future competencies for:
– External Auditors
– Professional Accountants in Business
• The need for Competence-Based Continuing Professional
Development (CPD)
• CPD Cycle

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Environmental Changes of Accounting Profession

Expanding
expectations
The spread
Continued
of digital
globalization
technologies

Increased Competencies
of Other
regulation &
external
stronger professional drivers
governance accountants Source: ACCA
(2016)

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Improving and Maintaining Competence

Constant change in
relevant environement:
public expectation, Need to develop Satisfy users’ needs
globalization, advances and maintain which contributes to
in technology, professional an efficent economy
business complexity, competence and value to society
societal changes,
stakeholder groups

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Developing Professional Competence
CONTINUOSLY
IMPROVING
PROFESSIONAL
ACCOUNTANT

PROFESSIONAL
ACCOUNTANT

ASPIRING IES 7
PROFESSIONAL
ACCOUNTANT
IES 2 – IES 6
INDIVIDUAL
IES 1

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IESs 7 & 8

Benefits of CPD

Maintains Public Guidance Materials (2015)

Confidence &
Trust • Webcasts on Implementation of IES 8
Supports High- – Professional Accountancy Organizations
Facilitates
Quality
Learning Agility Professional – Public Accounting Firms
Service
– Engagement Partners
CPD
• Frequently Asked Questions
Helps in Assists in
Coping with Achieving
Change Career Goals
Improves
Relevance &
Productivity

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IES 7

Continuing Professional Development

Requirements (2014 Q1)

• Promote CPD and maintenance of
professional competence
• Facilitate access to CPD opportunities
and resources
• Require all professional accountants
to undertake CPD
• Establish the preferred approach to
measuring CPD from output-based,
input-based or combination
approaches
• Establish a systematic process to
monitor CPD requirements and
provide appropriate sanctions

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Learning Outcomes Approach

What does a learning outcomes approach mean?

• Emphasize the outcome and not the learning process

• Demonstrated competence

• Programs are designed to enable the individual to achieve the

learning outcomes

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IESs 2, 3, & 4

Benefits of Learning Outcomes Approach

Guidance Materials (2016)

Learner-centric
• Value Statement
Facilitates
Quality Focuses • Guiding Principles
Assurance Curriculum
• Illustrative Examples of Practice
Learning
Outcomes – Designing Curricula & Learning Outcomes

Promotes Approach – Setting & Marking Examinations

Innovation in Encourages – Mapping Curricula to Learning Outcomes
Teaching Responsibility
– Designing Higher Education Programs
Accommodates
Various Learning – Addressing Governance Structures
Styles
• Frequently Asked Questions

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Significant Value

Learning
Outcomes -
Effective
Programs

Reputation of Demonstrated
Program Public Competence -
Provider -
Enhanced
Interest Life-long Value
to the Individual

Quality Service
- Increased
Stakeholder
Confidence

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Competency vs Non-Competency based CPD:
Continuous Improvement of Professional Competence
8
7
6
5 Competency based
4 CPD
3 Non-Competency
2 based CPD
1
0
Year 1 Year 3 Year 5 Year 7

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Competence-Based CPD Cycle

Source: CIPD, The CPD

Cycle,www.iucnredlist.org/
details/39779/0

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CPD Cycle

Identify and Plan

• Identify: Analysis of Competence – Past, Present,

Future
– Consider the impact of changes in environment to required
competence
• Plan: Identify how to acquire and demonstrate
desired competence
– Plan provides the guidance to follow, not a strict plan you
have to stick to.

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CPD Cycle

Act and Reflect

• Act: Obtain practical resources, learning new

competences (including at work)
• Reflect:
– Make sense of learning experiences and transform them into
insights and practical strategies for personal growth and
organizational impact.
– It requires space (mental and physical) so you can reflect
deeply with few or no distraction.

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CPD Cycle

Apply and Share

• Apply
– Develop a strategy for how you will apply the learning
– Create opportunities where you can continually revisit learning
through application
• Share
– Sharing your learning in communities of practice in order to generate
greater insight and benefit from the support of your community
– Many lessons to be learned through feedback and iteration

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CPD Cycle

Impact

• Assess how and what have you done to improve services, reduce costs, increase
revenue, save time, etc.
• Evaluate progress against the objectives you set at the beginning of the year:
– What have I learnt?
– Did I achieve my learning outcomes?
– What kind of unplanned outcomes or challenges arose from this experience?
– Which barriers or blocks did I have to overcome?
– How have I applied this this learning at work?
– What was the impact of this learning to my organization (tangible measurements, if
possible)?
– What lessons can I take from this experience?

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References

• ACCA, 2016, Professional Accountants – the Future.

• Barac, K., E. Gammie, B. Howieson, M. Van Staden, 2016, The Capability
and Competencies of Auditors in Today’s Complex Global Business
Environment, ICAS & FRC.
• CIPD, The CPD Cycle, www.iucnredlist.org/details/39779/0
• IAESB, 2016, The Role and Application of International Education
Standards of the IAESB, Powerpoint presentation
• Vitale, A.M., 2015, The Initial and Continuous Development of
Accountants in a Global Environment and International Accounting
Education Standards: A Learning Outcomes Approach, IAESB,
Powerpoint presentation
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Information

www.iaesb.org

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