COUNTRY REPORT:

China

Professional accountants – the future:

50 drivers of
change in the
public sector
About ACCA Part of our ground-
ACCA (the Association of Chartered Certified Accountants) is
breaking Professional
the global body for professional accountants, offering accountants – the future
business-relevant, first-choice qualifications to people of
application, ability and ambition around the world who seek series, this is one of a
a rewarding career in accountancy, finance and management.
series of country reports,
ACCA supports its 198,000 members and 486,000 students following on from our
in 180 countries, helping them to develop successful careers
in accounting and business, with the skills required by global report 50 drivers of
employers. ACCA works through a network of 101 offices change in the public sector.
and centres and more than 7,291 Approved Employers
worldwide, who provide high standards of employee learning It focuses exclusively on
and development. Through its public interest remit, ACCA
promotes appropriate regulation of accounting and conducts identifying the 50 drivers
relevant research to ensure accountancy continues to grow in of change in China that
reputation and influence.
are expected to have an
Founded in 1904, ACCA has consistently held unique core
values: opportunity, diversity, innovation, integrity and
impact on the public
accountability. It believes that accountants bring value to sector and the likely
economies in all stages of development and seek to develop
capacity in the profession and encourage the adoption of timing of these. It also
global standards. ACCA’s core values are aligned to the
needs of employers in all sectors and it ensures that through
assesses how professional
its range of qualifications, it prepares accountants for accountants will need to
business. ACCA seeks to open up the profession to people
of all backgrounds and remove artificial barriers, innovating continue to play a pivotal
its qualifications and delivery to meet the diverse needs of role in the decade ahead.
trainee professionals and their employers.

More information is here: www.accaglobal.com

© The Association of Chartered Certified Accountants

July 2017
Introduction 3

The global public sector is changing, with To help professional accountants and
The public sector is as complex the landscape being reshaped by a leaders in the public sector prepare for an
as it is diverse and it is not the combination of factors: a growing and uncertain future, ACCA undertook a global
same in any two countries; ageing population, the need for better study to explore which emerging drivers of
what is considered to be part infrastructure and increasing concerns over change could have the biggest impact and
sustainability and consumption. At the to highlight the skills that will be required
of the public sector often varies
same time demands are growing for greater over the period to 2026.
from one country to another. transparency and accountability for public
funds. These challenges are heightened by The recently launched global report is
advances in technology and by economic part of our ground-breaking Professional
and political uncertainty. As the social and accountants – the future series and is
economic environment shifts, all these the first report to focus exclusively on
factors will have serious consequences for identifying the 50 factors that will impact
public sector organisations and their the public sector, the likely timing of these
finance professionals. and how they will shape the future.

The public sector is as complex as it is The global study draws on a survey of

diverse and it is not the same in any two ACCA’s global forum for the public sector,
countries; what is considered to be part ACCA members and members of other
of the public sector often varies from one professional accountancy bodies working in
country to another. For example, in some the public sector. This was complemented
countries, such as the UK and Scandinavian with a series of roundtable events held
countries, healthcare is deemed to be a across 12 countries, from the US in the west
public sector function, while in some through to China in the east, and high-level
others it is a hybrid between the public interviews with key public sector figures.
and private sectors.
This particular report is focused specifically
For professional accountants working in on the results from the global report for
the public sector, the challenge is twofold. China and also follows a recent roundtable
First, they need to understand the key held in the country to discuss these key
forces shaping the future and how these issues. In this report we explore the drivers
could affect public sector organisations and of change that are impacting China’s public
the country they serve. Secondly, they need sector in particular. These include the
to provide support and influence financial quality and availability of talent, especially
decisions that will ensure that public funds as the population ages; sustaining the level
are deployed cost-effectively and efficiently. of economic growth with its dependence
on the global economy; governmental
influence over strategic direction, and the
impact of State Owned Enterprises (SOEs).
China: drivers of change 4

China has an ageing population, which is managing demographics; its planned

China has experienced significant presenting challenges, not least that of substantial infrastructure investment;
economic growth over the last how the country will find the talent pool it responding to global climate change and
decade. As the second largest needs to keep the economy growing at an resource constraints; and its exploitation of
economy in the world, its acceptable level. China’s particular technologies and Big Data. All these
challenges, which are highlighted in this developments will have an impact on the
contribution to global trade is
report, include (but are not limited to) its future of the public sector in China, and the
very significant yet it is also facing sensitivity to the global economy; role of finance professionals in the sector.
significant challenges, such as
an ageing population and rapid
urbanisation. These are some of
the challenges to the environment
in which the public sector will
need to continue to evolve.

Table 1: Ranking of the top 50 drivers of change for the public sector for China
The drivers of change are categorised into eight key themes: Economy; Politics and law; Society and demographics; Business of
government; Science and technology; Environment, energy and resources; The practice of accounting and The accountancy profession.

RANK DRIVER OF CHANGE THEME

1 Quality and availability of the global talent pool Business of government
2 The level of economic growth Economy
3 Business leaders’ responsiveness to change and disruption Business of government
4 Speed and duration of business cycles Business of government
5 Stability of the global economic infrastructure Economy
6 Big Data: the development and exploitation of large organisational databases, data mining and Science and technology
predictive analytics
7 Use of public private partnership (PPPs) Business of government
8 Spread of diversity in society and the workplace Society and demographics
9 Workforce age structure Society and demographics
10 Extent of foreign direct investment in developed and developing economies Business of government
11 Adoption of integrated systems thinking to manage business complexity Business of government
12 Clarity in financial reporting and defining the audit function The practice of accounting
13 Focus of global governance institutions Politics and law
14 Defining the scope of the accountant’s role The practice of accounting
15 Accounting skills capacity in transitional economies The accountancy profession
16 Non-financial information and integrated reporting The practice of accounting
17 Scale and distribution of global population growth Society and demographics
18 New industries and production models Science and technology
19 Flexibility, suitability and cost of accountancy training The accountancy profession
20 Stability of national revenue bases Economy
21 Competition for limited natural resources Environment, energy and resources
22 Rate of democratic transition Politics and law
23 Level of international political volatility Politics and law
24 Global climate change Environment, energy and resources
25 Societal expectations and definitions of accounting The accountancy profession
26 Size and complexity of the CFOs remit The practice of accounting
27 The digitisation of work Science and technology
28 Cybersecurity challenges for government Science and technology
29 Scale of take-up in alternative energy by business Environment, energy and resources
30 Level of entrepreneurial skills in the accountancy profession The accountancy profession
31 Total scale and distribution of global inequality and unmet needs Economy
Professional accountants – the future: China: drivers of change 5
50 drivers of change in the public sector
Country report: China

RANK DRIVER OF CHANGE THEME

32 Broadening measurement of public sector value and progress Economy
33 Balance between external financial accounting and internal managerial accounting The practice of accounting
34 Carbon tax and other environmental market mechanisms Environment, energy and resources
35 Opportunities arising from adoption of global regulation The practice of accounting
36 Experimentation with and adoption of new business models Business of government
37 Consideration of alternative economic perspectives Economy
38 Enterprise risk management capability Business of government
39 Public perception and attractiveness of the accountancy profession The accountancy profession
40 Adoption of globally accepted accounting standards The practice of accounting
41 Governance and delivery of outsourced public services Politics and law
42 The workplace expectations of Generation Y, Z and beyond Society and demographics
43 Cost and ease of access to higher education Society and demographics
44 Level of investment required to maintain national physical infrastructure Economy
45 Crowd sourced funding for innovation: the consumer as investor Business of government
46 Evolution of corporate governance regulation and practice Business of government
47 Advances in genetic science, impact of nanotechnology advances and robotic science across Science and technology
business sectors
48 Manageability of national and international debt Economy
49 Scope and diversity of expectations of external stakeholders Business of government
50 Pressure to manage reputation as part of business strategy Business of government

The top three (ranked) drivers of change for The economic growth rates cited above
A global shock would have each of the eight categories identified were: were in line with market expectations and
a profound impact on were supported by an increase in
the Chinese government, ECONOMY government spending, fixed asset
investment and retail sales when industrial
affecting its ability both to output eased. The OECD expects growth
The level of economic growth
manage the effects in the 2 to be 6.5% in 2017 and 6.3% in 2018
wider environment and to (Reuters 2017) as a result of structural
provide public services. Stability of the global economic
changes, and this clearly has an impact on
business confidence, consumer spending
5 infrastructure
and government planning and budgeting.

Stability of national Despite the growth, however, China is still

20 revenue bases classified as a developing country as its per
capita income is substantially less than that
of advanced countries and its market reforms
With a population of 1.3bn, China is the are, as yet, incomplete (World Bank 2017a).
second-largest economy in the world and
is increasingly playing an important and As China is the world’s largest trading
influential role in the global economy. nation, the stability of the global
economic infrastructure is important for
For many years China experienced a its continuing economic progress
remarkable period of rapid growth, shifting (Thomson Reuters 2017), and clearly this
from a centrally planned to a market-based has implications for the public sector in the
economy (World Bank 2017). GDP growth country. A global shock would have a
was 6.7% in 2016 and 6.9% in 2015. It was profound impact on the Chinese
the slowest full-year growth figure since 1990 government, affecting its ability both to
but comfortably within the government’s manage the effects in the wider
target range of 6.5–7% (Wildau 2017). environment and to provide public services.
A recent ACCA report (ACCA 2016a) In particular, China is the world’s largest
provides further evidence of the growth exporter, selling US$2.1 trillion of goods
imperative, citing the geographical spread and services to the rest of the world in 2016
of China’s fastest-growing companies, the (Statista 2017). It relies on the strength and
shift from manufacturing to service stability of the global economy as it is an
industries, and rising turnover rates. intermediate assembler of goods sourced
Professional accountants – the future: China: drivers of change 6
50 drivers of change in the public sector
Country report: China

from elsewhere that are then sold abroad POLITICS AND LAW
As well as external factors, (Cui 2007). At the same time, it has a strong
stability of national raw materials sector which is at risk from Focus of global governance
revenue bases is considered global downturns or shocks. 13 institutions
a prerequisite for the
economic well-being of
Rate of democratic transition
countries, as this affects ‘Since China’s accession to the WTO
in 2001, our trade and economy
22
governments’ ability to has developed rapidly. However,
provide public services. after the financial crisis we have Level of international
witnessed some unwanted adverse 23 political volatility
factors in the global market, such
as unstable geopolitics, global trade
As regards the focus on global
frictions and retrograde steps in
governance institutions, one of the most
economic integration. We were
significant bodies for China is the World
deeply affected by these adverse
Trade Organization (WTO) (WTO n.d.).
impacts, so we think that the
China’s accession to the WTO in December
stability of the global economic
2001, after 15 years of negotiations, was
infrastructure might be
the catalyst for its remarkable story of
a medium- and long-term factor
economic growth.
that profoundly impacts on us.’
China Roundtable participant
Nonetheless, the role of institutions such
as the WTO in China remains fluid. For
instance, the subject of trade is a political
As well as external factors, stability of issue across the world (Azevêdo and Jensen
national revenue bases is considered a 2016). The reality of a changing world and,
prerequisite for the economic well-being of especially, the continuing volatility of
countries, as this affects governments’ international politics could see networks of
ability to provide public services. Chinese governance institutions such as the World
government revenues are derived from Bank, International Monetary Fund (IMF),
direct taxes paid by corporations World Trade Organization and the United
(Corporate Income Tax) and households Nations (UN) facing intensifying pressure to
(mainly individual income tax); and indirect adapt their structures to be fit for purpose
taxes, social contributions and revenues in a new economic era.
from state-owned assets and enterprises
(Deloitte 2016). The ratio of tax revenue to In China itself there are questions over
GDP grew from 10.5% in 1994 to 20.1% in governance. Rapid economic growth has
2015, which the government notes provides brought challenges to China, including
‘a strong financial support to China’s high inequality, rapid urbanisation,
economic growth and prosperity’ (State imbalance in geographic development,
Administration of Taxation of the PRC 2016). and environmental concerns. China also
faces demographic pressures relating to an
One emerging economic risk is China’s ageing population and the internal
household debt, which as a proportion of migration of labour. The 12th Five Year Plan
GDP has more than doubled to 40.7% in (2011–2015) and the 13th (2016–2020) seek
less than 10 years. While more developed to address different aspects of economic
nations have higher rates of household and social transition, particularly through
debt, Chinese families are much more measures addressing environmental and
leveraged because disposable income is social problems (CPC n.d.). China is also
lower and so proportionately the costs of currently debating the country’s industrial
social welfare, from pensions to health care, development model and government
are much higher (Reuters 2016). In addition, intervention in market forces (Zhang 2016).
China’s urbanisation rate is not as high as Successfully implementing market-
developed nations’ level of 70%–80%. orientated economic reforms can be seen
as a way of maintaining a stable economy
(Prasad 2016).
Professional accountants – the future: China: drivers of change 7
50 drivers of change in the public sector
Country report: China

As big a concern for China as a stable The population is ageing faster than
‘The government economy is the level of international anywhere else in the world. In 2015, 10% of
has launched the political volatility, which significantly China’s population was over 65 (World
“second child policy” affects China’s economy. In October 2013, Bank 2017b). Estimates indicate that this
to cope with the problem Chinese president Xi Jinping launched an will reach 17.2% by 2030 and 27.6% by
infrastructure plan to support China’s role 2050; currently 48% of the population is
of an ageing population.’ in international affairs through cooperation aged between 25 and 54 (UN 2015).
China Roundtable participant with and investment in countries along the
Silk Road Economic Belt and the Maritime The ageing population will put pressure
Silk Road (Hancock 2017). This ‘Belt and on those of working age. This is already
Road Initiative’, which would boost China’s happening. In 2013, China introduced a law
global influence, includes US$900bn of that requires children to provide for the
infrastructure investment including ports emotional and physical needs of their
and railways across Asia. The move comes parents, although many employers limit the
at a time when uncertainty in Europe and flexibility of working arrangements for care
the US has reduced consumer confidence givers (Catalyst 2016). China’s dependency
causing, in turn, a downturn in the ratio (the measure of number of
requirement for Chinese-assembled goods. dependants, ie those aged 0–14 years and
This volatility is reflected in China’s trade over 65, compared with those aged 15–64)
surplus, which narrowed to 3.35 trillion could rise to 44% by 2050 (Rapoza 2017).
yuan (about US$486bn) in 2016, down 9.1% In 2015 it was 36.6% (Index Mundi n.d.].
from a year earlier (Xinhuanet 2017).
At the same time, global demographic
SOCIETY AND DEMOGRAPHICS changes will have a significant impact on
the workforce age structure. A younger
Spread of diversity in society population entering the workplace could
8 and the workplace generate pressures and tensions.
Economic productivity and social cohesion
depend on achieving intergenerational
Workforce age structure equity and fair outcomes across the age
9 spectrum and between the genders. Issues
include: womens’high participation in the
Scale and distribution of workforce; few women in leadership roles
17 global population growth with a gender pay gap; discrimination in
employment and promotion, often in
relation to maternity leave; the majority of
China is the most populous country in the
mothers work in China – although
world, with an estimated population in
economic reforms are reducing many child
2017 of 1.38bn, 18.5% of the global
care options; and yet more women are
population (Statista n.d.). On 1 January
college educated than before. As well as
2016 China formally ended its one-child
workplace pressure, society is also
policy, thereby allowing all couples to have
changing: women are marrying later – the
two children, previously only permitted in
mean average age for women to marry was
certain circumstances. This will affect the
25 in 2015, in 2011 it was 23 – and 50% of
scale and distribution of global
highly educated women are unmarried;
population growth. While the population
traditionally, men believed they should be
is expected to reach a peak of just over
more educated than their wives (Catalyst
1.4bn by 2035, it is expected to fall back to
2016). A survey of 128,576 people
1.35bn by 2050 (Worldometers n.d.). India
published on 6 March by zhaopin.com
will overtake China as the most populous
(Global Times 2017), one of the biggest job
country by 2025 (Wang 2010).
recruitment sites in China, found that over
80% of the female respondents believed
A number of significant demographic that gender discrimination still exists in
changes are taking place in China which recruitment. Many women complained that
will precipitate the spread of diversity in under the second-child policy, gender
society and the workplace. discrimination has increased in workplaces.
Professional accountants – the future: China: drivers of change 8
50 drivers of change in the public sector
Country report: China

Another factor is migration within the BUSINESS OF GOVERNMENT

The deep structural changes country from rural areas to large cities –
that the Chinese economy although there are now limitations in place Quality and availability of the
is undergoing imply a for some first and second tier cities – and 1 global talent pool
continuous need to upgrade from west to east (Farrar 2016). Net
migration into China is negligible
the skills of the workforce (Countrymeters n.d.).
Business leader responsiveness
to meet market demands. 3 to change and disruption

The Chinese government also has a

complex and challenging task in managing Speed and duration of
and addressing the needs of a diverse
workforce, and the wider population, with
4 business cycles

competing interests between generations.

As the ranking shows, the way in which
Meanwhile, public sector organisations will
government organisations affect business
need to find ways of attracting and
and the economy is an important factor in
retaining talent from this diverse
China. The country has 116,000 state-
workforce. The retention issue of the
owned enterprises (SOEs), accounting for
younger generation in China was recently
about one-fifth of economic output, but in
noted in an ACCA report Generation Next
profitability they lag behind private
(ACCA 2016b), which found that 23% of
companies. Nonetheless, SOE’s share of
young finance professionals expect to
overall fixed-asset investment reached
move from their present role within one
35.4% in May 2016, the highest since 2011
year, and 57% expect to move within two
(Wildau 2016). The top 12 companies on
years (across all sectors). These were,
Fortune Global 500 list are SOEs
however, slightly lower than the global
(Cendrowski 2015). The government is
averages across all countries.
reforming SOEs, including by introducing
policies designed to create a more flexible
workforce across the range of SOEs by
‘I am Generation Y and my encouraging more mobility in the sector,
students are Generation Z. especially at senior levels.
Generation Z are smart, their
perception of certain things is a bit The role of SOEs in China is a significant
different from ours. For example, factor in the quality and availability of the
at our accounting institute, we global talent pool. Over the period
feel often that if something is a 2017–2021, this is a global issue across all
risk, but they may think it is not; sectors, including the public sector, in
instead, they believe that it is an order to drive through innovation. In
opportunity. They are also eager practice, the public sector often struggles
to learn new things, especially in to compete with the private sector over
times of change. This is a positive talent, with remuneration as one key
influence for a society as well as reason. A failure to attract the right calibre
an organisation. But they have of staff will impede the public sector’s
limited experience and need to be attempt to modernise.
guided when faced with abundant
opportunities for change.’ The OECD has noted that in China: ‘The
China Roundtable participant knowledge taught and skills nurtured at
school do not sufficiently match labour
market needs. Workplace training-based
vocational education arrangements are
woefully inadequate’ (OECD 2015). The
deep structural changes that the Chinese
economy is undergoing imply a continuous
need to upgrade the skills of the workforce
to meet market demands. China’s National
Plan for medium and long-term education
reform and development 2010–2020
Professional accountants – the future: China: drivers of change 9
50 drivers of change in the public sector
Country report: China

emphasised the importance of lifelong

‘Overseas investment learning. Employers are required to ‘Speed and duration of business
and development require allocate 1.5% of the wage bill for such skills cycles causes deep concerns. When
[talented individuals] training – firms with high skills we apply for a new overseas project,
who have global vision. At requirements and good performance we need to get approval from
should allocate 2.5%. These requirements our group company, Ministry of
present we are bringing in are not always observed. Firms’ incentives Commerce, NDRC and some other
more and more such talents for training workers could be enhanced by supervising bodies. Sometimes
to fill in the talent gap in clearer career planning; wider and better when we have finally gone through
our overseas projects.’ education in full-time institutions. Also, job the whole process, the window has
China Roundtable participant hopping could be deterred by a already closed. This problem is quite
requirement for employees to repay obvious now, but we are making
training costs if they resign. changes. For example, our group
made a list of delegated powers,
Managing the global talent pool is part of so that the regional secondary
the business leaders’ responsiveness to companies can autonomously make
change and disruption. Innovation and decisions and swiftly respond to the
change offer an opportunity for market changes.’
modernising public services, ensuring that China Roundtable participant
the right services are delivered through
opportunities such as digitisation. China’s
ability and desire to innovate has become SCIENCE AND TECHNOLOGY
a significant subject of discussion (Tse
2016). Leaders need to understand rapidly Big Data: large organisational
changing business practices, changing databases, data mining and
organisational structures and operating
models in order to navigate effectively
6 predictive analytics

through a changing and complex

landscape: attributes that are particularly New industries and
relevant in the China market. 18 production models

A significant change in the China

The digitisation of work
landscape, and a key identified driver of
change for the public sector is the speed
27
and duration of business cycles. As
technologies are increasingly adopted by Advances in science and technology lie at
different enterprises in the private and the the heart of many of the developments
public sector, organisations are under that will shape the public sector landscape
pressure to adapt their structures, processes over the next decade as they offer the
and systems on an almost continuous potential for disruptive innovations in
basis. As a result, there is a growing literally every aspect of human life, society
emphasis on the need for speed, flexibility, and work. Big Data: the development
adaptability and responsiveness. These in and exploitation of large organisational
turn demand rapid decision making and databases, data mining and predictive
shortening cycles for execution of change. analytics is beginning to be explored by
Public sector organisations will need to China. Government departments can
factor this into policy development and compare and mine individual records from
implementation. One significant change different organisations: for example, to
for China is the public private partnerships achieve cross-sector and cross-regional
model (English.Gov.CN 2016), introduced sharing in the health sector. And Chinese
by the Ministry of Finance. As of Q4 2016, Premier Li Keqiang has announced the
investment had totalled US$320.7bn as intention of making government-held data
part of the government’s efforts to available, subject to protections for
promote investment, yet protocols must national security and commercial and
evolve to ensure greater flexibility and individual privacy. The Premier said the
adaptability to enable delivery. government held 80% of the country’s data
Professional accountants – the future: China: drivers of change 10
50 drivers of change in the public sector
Country report: China

(Hewitt 2016). It is also reported that the ENVIRONMENT, ENERGY AND

As the world’s industrial government is testing systems that will be RESOURCES
powerhouse and with used to create digital records of citizens’
frequent smog in many social and financial behaviour. In turn, Competition for limited
cities, China has an these would be used to create a so-called 21 natural resources
social credit score, which will determine
important role to play in whether individuals have access to services,
tackling global climate from travel and education to loans and Global climate change
change and pollution. insurance cover. Businesses and some 24
individuals such as lawyers, accountants,
teachers and journalists would receive Scale of take-up in alternative
closer scrutiny of their professional
behaviour (Wall Street Journal 2016). In
29 energy by business

2015, the Chinese Institute of Certified

Public Accountants (CICPA) commented China still faces challenges from a huge
that Big Data provided opportunities for population base and limited natural
accountants but that those in the resources, notably water. The country has
profession needed to improve their own 7% of the world’s water resource, yet 20% of
information systems at the same time. the world’s population (Shemie and Vigerstol
2016). At least one-third of China’s lakes and
Another key driver of change identified rivers are unfit for human use, and 73% of
for the public sector by this study is the the watersheds that supply water to China’s
potential of new industries and 30 fastest-growing cities face medium-to-
production models. Given the importance high pollution levels. The country is adopting
of SOEs to the economy, their ability to various measures, such as improved water
embrace changes and innovations will be treatment, to counter the crisis.
crucial. Advances in science and technology
are yielding radical new industrial processes In other areas, the country has an
that could be the basis of major industries abundance of resource. China has about
of the future. In many cases, these 12% of the world’s mineral resources, with
industries are also introducing new business only the US and Russia having more. There
models and distribution approaches. are significant reserves of coal, iron, tin,
copper, lead, zinc, molybdenum, tungsten,
Similarly, every sector of industry and mercury, graphite, antimony, magnesite,
commerce will be changed by the fluorspar, and other minerals (CRIEnglish.
digitisation of work in China, and here the com n.d.). In addition, China has been taking
public sector is no different. It is estimated steps to increase its access to raw materials,
that 25% of China’s labour-productivity such as oil and gas, through collaborations
growth by 2025 will come from digitalisation under the Belt & Road Initiatives.
of the work place (Woetzel et al. 2014) and
some digitisation in the corporate sector is As the world’s industrial powerhouse and
taking place: for example, coal and coal with frequent smog in many cities, China
chemical companies are working to create has an important role to play in tackling
a digital market place (Li and Robinson global climate change and pollution. It has
n.d.). But there are many further ratified the Paris climate change agreement
opportunities in the public sector for and should meet the targets it has set itself
digital transformation to occur. for reducing greenhouse gases, which
peaked in 2010. Although still heavily
coal-dependent, it has reduced coal use
for three years in a row and has scrapped
plans to build 100 coal-fired power plants.

China’s 13th Five Year Plan incorporated

headline targets to reduce energy intensity
by 15% and carbon intensity by 18%
compared with 2015 levels. It capped
energy consumption at 5bn tons of coal
equivalent, and the share of primary energy
consumption from non-renewable sources
will increase to 15% during the Plan.
Professional accountants – the future: China: drivers of change 11
50 drivers of change in the public sector
Country report: China

The scale of take-up in alternative development, providing financial

Professional accountants energy by business seems to be gathering leadership in a challenging environment
in China are increasingly pace (New York Times 2017). China has where government spending is under
key to policy development, also invested heavily in solar and wind continuous pressure from decreasing
providing financial renewable energy, which has helped to government income. Greater expectations
drive down cost, investing US $102.9bn in are also being placed on the role of
leadership in a challenging renewable energy in 2015 (Kinver 2016). professional accountants in the sector,
environment where Much of the investment has been through particularly with the expected advances to
government spending state-directed finance mediated through be seen through digital technology
is under continuous the issuance of green bonds. adoption and the role of analytics.
pressure from decreasing
government income. THE PRACTICE OF ACCOUNTING
‘With the advancement of
Clarity in financial reporting
information technology, the ERP
12 and defining the audit function
[enterprise resource planning]
systems have been integrated into
Defining the scope of the our accounting system, which
14 accountants’ role simplifies the accounting work.
After the simplification of the
accounting work, the focus needs
Non-financial information to be shifted to the management
16 and integrated reporting aspects. For us, this means the
change of the finance staff’s
Responsibility for clarity in financial duties and functions.’
reporting and defining the audit function in China Roundtable participant
the public sector in China rests with the
Ministry of Finance. The Ministry has set
itself a target of increasing investor High-quality financial reporting – including
confidence by improving the quality of non-financial information and integrated
reporting through the shift towards reporting – is also an important
International Financial Reporting Standards prerequisite for building and maintaining
(IFRS) convergence and IPSAS trust in the public sector. If government is
(International Public Sector Accounting to ensure good public financial
Standards) adoption. Since 2007, the management, it needs to know the assets
Accounting System for Business it holds and the level of current and,
Enterprises and Auditing standards has importantly, future liabilities. Even while
been established in China and is China has been implementing best
mandatory for listed Chinese businesses; practice in current accounting there has
this shift heralded a move towards been a growing realisation across the world
harmonisation with IFRS. On 18 January that traditional financial reporting provides
2015 the Chinese Accounting Standards for insufficient information for decision-
Business Enterprises and the IFRS making. Of growing interest in China is
Foundation announced the formation of a integrated reporting, <IR>, which goes
joint working group to advance further further than just assessing the financial
IFRS adoption in the country. Convergence resources captured on the balance sheet.
with International Auditing Standards was <IR> includes other resources that are less
achieved in 2010, and was applicable for all easy to measure, such as human, natural
audits of financial statements for periods and intellectual capitals, which have a
beginning on or after 1 January 2011 bearing on the value of an organisation.
(CICPA 2016).
The ultimate goal for <IR> is to
Dealing with these innovations in accounting communicate an organisation’s
practice, adoption of international standards performance in the widest sense in a clear
in government and also considering the and relatively succinct way. This places
potential of disruptive technology all demands on professional accountants for
contribute to defining the scope of the understanding the ‘bigger picture’ of
accountants’ role, and this will be especially government objectives and strategy, and
true in the public sector environment in demonstrating how government uses
China in the future. Professional accountants resources to achieve its aims and measure
in China are increasingly key to policy the impact of its activities.
Professional accountants – the future: China: drivers of change 12
50 drivers of change in the public sector
Country report: China

China has responded to the <IR> 50% of public sector financial professionals
‘There is a need for an movement, introducing a reporting in China (compared with a figure of 33% in
on-going conversation to requirement for SOEs via its State-owned all sectors in China) indicated that the lack
describe the various aspects Assets Supervision and Administration of a transparent career path was a barrier
of the accountant’s role.’ Commission (SASAC) in 2008 (Lovells to their career progression. A lack of value
2009). China’s largest SOEs have placed on their current role (38%) and
China Roundtable participant requirements to report against corporate organisational barriers and culture (35%)
social responsibility (CSR) and economic were also cited as significant factors, as was
development, social progress and the lack of available roles (32%). Only 19%
environmental protection. The Shenzhen, of the respondents indicated that their
Shanghai and Hong Kong stock exchanges next career move would be to remain in
have also introduced reporting CSR the public sector; 40% were looking to
guidelines for listed companies. move to a large private sector business.

THE ACCOUNTANCY PROFESSION Flexibility, suitability and cost of

accountancy training are also key in
Accounting skills capacity in ensuring adequate capacity for the public
15 transitional economies sector in China for the future. Training
financial professionals needs to be flexible
to suit employers’ needs and employees’
Flexibility, suitability and cost
work commitments, location and preferred
19 of accountancy training
learning styles. Professional training is a
significant investment for the trainee and
Societal expectations and employer. It needs to be cost effective. This
25 definitions of accounting includes having suitable HR policies to ensure
that individuals with the suitable commitment
and ability are selected and, once qualified,
Accounting skills capacity in a clear retention policies will be essential.
transitional economy such as China is key,
and identified as a key driver of change in Having the relevant skills and knowledge is
this report. Distrust in governments is seen the foundation but professional accountants
as an increasing global risk (WEF 2016) and in the public sector will need additional skills
it is imperative that governments do all and qualities and, as their role evolves and
they can to build trust and engage with as their industries and sectors reform and
the populations they serve (WEF 2016). respond to challenges, other skills will
The provision of reliable information on become more important. For the public
government spending and financial sector these will include, in particular,
performance is an important element analysis, decision support and change
in building this trust. In particular, fiscal management skills. Professional accountants
transparency is a critical element of in China should not only be record-keepers
effective fiscal policymaking and the of past performance, but will need to be
management of fiscal risks (IMF 2013). influencers of future performance to ensure
In China there is significant awareness of appropriate stewardship and sound
these pressures; in 2015 the Chinese financial management.
Institute of Certified Public Accountants
(CICPA) highlighted that the profession As the Chinese economy continues to
needed to respond to the need for higher transform, finance professionals in the
quality information as a consequence of public sector in China can expect societal
an increased flow of foreign investment. expectations and definitions of
accounting to continue to change, and this
There is, however, a danger that existing is also seen as a key driver determining the
accounting capacity will be undermined or future of the profession in the country and
reduced. In ACCA’s survey Generation in the sector. The country’s particular
Next (ACCA 2016b), the respondents in the political, legal, sociocultural and economic
public sector in China, who were all under environments have helped to shape the
the age of 36, indicated that their key profession’s development in the country so
motivators for a career in the profession far, and will continue to do so as China
were jointly (55%) the opportunity for continues to play an increasingly important
developing a broad range of skills and the role on the world’s economic stage.
longer-term career prospects. Despite this,
Summary: implications for finance professionals 13

China is the second largest economy in the governance and control over use of the
China now plays a central world with a population of over 1.3bn. Its data. Significant growth of China’s labour-
role in the global economy, economy continues to grow at a productivity by 2025 can be expected to
and the public sector in remarkably rapid pace with expectations come from digitalisation of the workplace,
China is essential to its for 2017 to be over 6%. It is the world’s particularly as new business models and
largest exporter and so is very dependent service delivery models evolve.
overall future success.
on the success or otherwise of the global Professional accountants in the public
economy. Behind the headlines, however, sector have opportunities for capitalising
there remain continuing challenges that on emerging technologies and better data
will affect the provision of public services; to help drive value for their organisations.
China’s market reforms will also continue to
evolve. Alongside rapid economic There are also opportunities for better
development over the last 20 years, there reporting. Since 2007, the Accounting
is a closer focus on sound governance and System for Business Enterprises and
interventions to address concerns in areas Auditing Standards has been established,
such as social inequality, rapid indicating a move towards harmonisation
urbanisation, geographic wealth with IFRS. More recently, in 2015, the
distribution and environmental issues. And Chinese Accounting Standards for Business
there are also enormous infrastructure Enterprises and the IFRS Foundation
projects shaping the future destiny of the announced the formation of a joint working
economy, such as the ‘Belt and Road’ group to advance IFRS adoption further in
initiative. All these issues, of course, the country, and there are similar
ultimately affect the country’s public sector aspirations for the application of IPSAS.
in different ways. There are also shifts towards greater
recognition of integrated reporting and
In spite of its relative economic success, corporate social responsibility (CSR)
China also faces other challenges that will reporting requirements for SOEs. In all
need to be carefully managed in the future, these developments, professional
and that will also have an impact on the accountants in China are increasingly key
public sector. Its population is ageing to policy development, providing strong
faster than anywhere else in the world and financial leadership in a challenging
in early 2016 it formally ended its ‘one environment and being integral to
child’ policy. The ageing population could continuing to ensure appropriate
put significant pressure on those of stewardship, which is attractive for inward
working age and workforce structures, as investment purposes. To contribute
well as presenting challenges more broadly effectively, however, they will need to
for the state sector. There are also develop the appropriate skills and
challenges in dealing with gender diversity capabilities, and recognise how these need
and managing the inter-generational to change as the sector develops. ACCA
workforce. Perhaps unsurprisingly, the (2016b) research has also recently
quality and availability of the talent pool suggested specific retention challenges in
was identified as the number one driver of the public sector in China, so effective
change across the public sector in China talent management in the sector will be
yet challenges also remain for education critically important in the future.
provision, partly in response to the deep
structural change that the Chinese A PLATFORM FOR ENGAGEMENT
economy has been undergoing.
The aim for this global project is to provide
Yet, amid all these challenges, there remain a platform for engagement between
significant opportunities for professional China’s public sector organisations,
accountants in the public sector in China. professional accountants and the wider
Technology developments are going to community of stakeholders. No future-
have a significant impact on the overall oriented work of this type can ever hope to
economy and the state sector, and will be definitive, but this report provides an
influence heavily the role of professional important input into the development of
accountants therein. Linked to this is the future public sector strategy. It provides
availability of good data in the public accountancy professionals, and the
sector that can be exploited effectively to organisations in which they work, with a
drive better service delivery and framework for preparing for, adapting to
information, as well as challenges for the and influencing changes.
Acknowledgements 14

ACCA would like to thank those who participated in producing Drivers of Change: China.

Ding Aiyun, Director, Shanghai Qingpu District Finance Bureau

You Baojian, The first affiliated hospital, Xi’an Jiao Tong University

Dr Huang Changyin, Lecturer, Shanghai National Accounting Institute

Zheng Daxi, Finance, Hospital

Zhou Jing, Supervisor, Shanghai Customs

Mu Tao, Supervisor, Shanghai Stock Exchange

Appendix: 50 Drivers of change definitions 15

ECONOMY
1. Stability of the global economic infrastructure
The global economy, trade and financial flows are dependent on a complex underpinning infrastructure that comprises a range of key agreements,
standards, systems, checks, balances and governance frameworks.
2. The level of economic growth
Growth expectations influence business confidence, consumer spending, government planning and budgeting, and management of the micro and
macro economy.
3. Consideration of alternative economic perspectives
The financial crisis has offered a chance for nations to explore new economic perspectives and models traditionally neglected by mainstream
economic thought. A serious examination of these perspectives could help reformulate the global economic system along more environmentally
sustainable and equitable lines.
4. Total scale and distribution of global inequality and unmet needs
Higher income inequality, (as noted by OECD) within countries correlates with higher unemployment, higher crime rates, lower average health, weaker
property rights, limited access to public services, lower social mobility, more social unrest, and less trust within and across the society, leading to more
fragile democracies. This presents huge challenges for public sector and how it develops policies to meet these challenges.
5. Broadening measurement of public sector value and progress
How we assess value, progress and performance for government is expanding rapidly to take account of non-financial measures of development
encompassing everything from innovation to happiness.
6. Stability of national revenue bases
The stability of national revenue bases is considered a prerequisite for the economic well-being of countries as it affects governments’ ability to
provide public services. Generally, government revenues are derived from direct taxes paid by households (mainly personal income tax) and
corporations; and indirect taxes, social contributions and revenues from state owned assets and enterprises.
7. Manageability of national and international debt
The manageability of national and international debt is important for macroeconomic stability, business confidence and future economic development
prospects. Levels of public debt also have important ramifications for citizen well-being, unemployment levels and the provision of social welfare
services. Globally, the economic outlook is increasingly influenced by the views of policymakers, central bankers and financial institutions on the
sustainability of sovereign debt.
8. Level of investment required to maintain national physical infrastructure
Physical infrastructure forms the economic backbone of all economies. The quality and resilience of a national infrastructure has a direct influence on
the growth, competitiveness and attractiveness to inward investment of a nation’s economy. The standard of economic infrastructure, encompassing
water, waste, transport, energy and communications, affects the quality of life for citizens as well as the ability to meet objectives and commitments
regarding sustainability and reducing carbon emissions.

POLITICS AND LAW

9. Focus of global governance institutions
A network of governance institutions such as the World Bank, IMF, World Trade Organization (WTO) and the UN could face intensifying pressure to
adapt their structures to the reality of the changing world. There is, however, still a belief among developing nations – such as the G77 grouping –
in particular that they need a stronger voice in the wider set of global governance institutions.
10. Rate of democratic transition
The rate of democratic transition is changing the global landscape. Political changes may open up the economy, attract foreign investment, create
business opportunities and drive the growth of domestic segments but swift changes in power can be violent and disruptive – creating political and
economic instability.
11. Level of international political volatility
The level of political volatility caused by popular uprisings or the actions of hostile nations and terrorists groups can pose a threat to both the physical
and economic integrity of a state. Such fluctuations can affect inward investment and spending in a country thus seriously affecting the state’s
economic performance, and reduce confidence of global financial markets.
12. Governance and delivery of outsourced public services
The way in which public services are managed, funded, supplied and consumed is changing fundamentally, in line with the financial struggles that
nations face. In order to meet higher demands with smaller public funds, it is likely that 21st century public services will look radically different in the
future and from what was seen in the 20th century.
Public sector provision is increasingly moving to the private sector raising questions around governance and risk.
Professional accountants – the future: Appendix: 50 Drivers of change definitions 16
50 drivers of change in the public sector
Country report: China

SOCIETY
13. Scale and distribution of global population growth
A number of key trends are shaping the world’s demographic landscape. The global population is expected to continue to grow at least until 2050,
forecast to reach 9.3 billion. At the same time, overall fertility levels are declining. These global trends mask marked differences at the national and
regional levels. There are numerous cultural, social and economic factors that both affect and are affected by global demography.
Rapidly growing populations also present economic and capacity-building challenges for governments seeking to provide public services.
14. Spread of diversity in society and the workplace
Greater mobility across the globe has a great impact on the level of diversity. Cultural diversity and Increasing levels of female participation in the
workforce is seen as both an important social goal and a vital way of maximising the use of available talent to maintain or bolster economic development.
15. Workforce age structure
A downward trend in global fertility coupled with an ageing society means that each future generation could be smaller than the previous one.
Although the global population is still growing the average age is also rising.
With the abolishment of the default retirement age and workers staying in senior positions longer, organisations have to factor in increased salary and
healthcare costs. As existing retirees re-enter the workforce owing to a combination of low pensions and removed barriers, organisations will have to
consider how to attract, retain and integrate older talent.
16. The workplace expectations of Generation Y, Z and beyond
One of the biggest challenges faced by organisations today is how to understand and respond to the expectations of generations coming into
the workplace.
17. Cost and ease of access to higher education
The economics of education is changing as public budgets shrink and institutions have to compete for funds, raise fees and cut unprofitable courses.
Rising cost of higher education has important ancillary impacts for the level of personal debt for students and their equality of opportunity.
Online channels for delivering education are also changing the nature and delivery of professional development. The uptake of online learning may
increase in emerging economies.

BUSINESS
18. Use of Public Private Partnerships (PPPs)
Governments have been and are increasingly looking to partner with private sector to help fund large scale public infrastructure programmes. This has
led to significant growth in the adoption of PPP/PFI initiatives. However the perception that any risk of failure lies with public sector and reward is with
the private sector.
19. Business leader responsiveness to change and disruption
Momentous economic and social forces are currently reshaping the world. At the same time, disruptive advancements – often enabled by technology
– are affecting everything from industry structures, through societal governance to the nature of human interaction. The ability of organisations to
adapt to new challenges and opportunities created by change and transformation is becoming a key determinant of success or failure in a turbulent
operating environment.
20. Quality and availability of the global talent pool
Access to talent at all levels is consistently identified as a critical future success factor for all organisations. The challenge of securing a suitable flow of
talent is increasingly becoming a top priority for leaders who are finding growth and development ambitions hampered by talent shortages. The
quality of education itself seems to be a critical talent issue.
21. Extent of foreign direct investment in developed and developing economies
Foreign direct investment (FDI) flows are an important source of investment and economic growth for many countries. In an uncertain and highly
competitive global economy, ensuring that a destination is seen as a safe location for FDI is becoming an increasing priority for many countries and
their governments.
22. Speed and duration of business cycles
As technologies such as the internet compress time and distance, organisations are under pressure to adapt their structures, processes and systems
on an almost continuous basis. As a result, there is a growing emphasis on the need for speed, flexibility, adaptability and responsiveness. These in
turn demand rapid decision making and shortening cycles for execution of change. Public sector organisations will need to factor this in policy
development and implementation.
23. Experimentation with and adoption of new business models
In an uncertain economic climate, the pace of introduction of new business models could accelerate. These new models have the potential to disrupt and
reinvent industries. As pressure on public finances increase the need to develop new models of financing and alternative revenue and pricing models.
24. Crowd sourced funding for innovation: the consumer as investor
The internet has facilitated the emergence of new finance models that allow organisations to fund product development and service delivery in
advance via crowdsourcing using online platforms. The public sector needs to be able to respond to such rapid changes.
25. Adoption of integrated systems thinking to manage business complexity
The perceived shortening of business cycles is creating major challenges in terms of how we design, manage and change highly complex, globally
interconnected and rapidly evolving businesses. While the timescales for action are shortening, the perceived complexity of the task of making
change happen is growing.
Professional accountants – the future: Appendix: 50 Drivers of change definitions 17
50 drivers of change in the public sector
Country report: China

26. Enterprise risk management capability

There is growing concern and increasing uncertainty over the nature and scale of risks to which organisations are – or could be – exposed. At the same
time, new risks and sources or concepts of risk, such as resource wars, are emerging. The ability to effectively manage this is increasingly important.
27. Evolution of corporate governance regulation and practice
Traditional structures of corporate governance stem from legislation, regulation and institutional best practices. They are intended to oversee the
conduct of business and the management of relationships among and between internal and external stakeholders. These governance rules should
improve accountability, reduce corruption and avoid conflicts of interest. A general push for greater transparency for public spends has driven
increased expectations for accountability and demonstration of robust risk-management policies.
28. Scope and diversity of expectations of external stakeholders
The range of stakeholders for public sector organisations and the breadth of their concerns and expectations are increasing in the wake of a period of
enormous economic turbulence and systematic failures. As a result, regulatory, transparency, ethical and performance demands of this growing range
of external stakeholders are expanding for the organisation, the finance function and the accountancy profession.
29. Pressure to manage reputation as part of business strategy
The public sector has always had challenge of corporate reputation management which has been compounded by the instantaneous nature of the
internet and social media in particular. The challenge is to manage long term government priorities whilst managing short term ‘shocks’.

SCIENCE AND TECHNOLOGY

30. The digitisation of work
Increasing digitisation is transforming the nature of work and working practices in almost every sector. It is reasonable to assume that task automation
will extend to ever-more knowledge-intensive, analytical and judgement-based work activities over the next decade and beyond.
31. Cyber security challenges for government
The increased reliance on computers in our daily lives and digitisation of financial services has opened up individuals and organisations to threats from
cyberspace. Threats and attacks are typically conducted by groups and individuals who hack systems to attain both ideological and financial goals.
32. Big Data: the development and exploitation of large organisational databases, data mining and predictive analytics
There is a growing interest in how organisations can exploit ‘Big Data’ – the large and growing databases of customer and transactional information
being generated through daily activities. The challenge is to create new toolsets that enable the management and manipulation of these large
datasets and to generate powerful predictive insights about future customer behaviour. As governments are usually the largest collector of data,
increasing use of data mining and predictive analytics should help to spot possible future opportunities, shocks, issues and challenges.
33. New industries and production models
Advances in science and technology are yielding radical new industrial processes that could be the basis of major industries of the future. In many
cases, these industries are also introducing new business models and distribution approaches.
34. Advances in genetic science, Impact of nanotechnology advances and robotic science across business sectors
Advances in science have revolutionised humankind’s understanding and control over the natural world. Opportunities are being created through
nanotechnology and rapid progress in robotic science has led to the development of sophisticated machines that perform a wide range of industrial
and domestic tasks. In medicine, a major field of study is the development of miniature robots that can be ingested and then repair damaged cells
and organs in the body. This places great pressure on governments to ensure there is regulatory rigour to address ethical concerns raised and
simultaneously explore opportunities to manage better healthcare provision.

ENVIRONMENT, ENERGY AND RESOURCES

35. Global climate change and
There is increasingly widespread agreement that the planet faces a real and growing risk from dangerous climate change and their impacts are
unpredictable. New environmental risks – such as hereto unforeseen extreme weather events place significant pressure on public finds to manage the
aftermath and develop robust preventative measures such as effective flood defences.
36. Competition for limited natural resources
Increasing demand for finite resources places pressures on governments to promote ethical resource consumption and maintain economic growth.
37. Carbon tax and other environmental market mechanisms
There is a growing move by governments to use taxation and market mechanisms to encourage more environmentally sound behaviour and provide
the funds to finance environmental protection and clean-up costs.
38. Scale of take-up in alternative energy by business
Governments are evaluating and encouraging the greater use of alternative energy sources as one route to reducing dependency on carbon-based
fuels. Increase of alternative forms of green energy, such as solar, wind and bio-gas, has given organisations a wider range of options for fulfilling their
energy needs.
Professional accountants – the future: Appendix: 50 Drivers of change definitions 18
50 drivers of change in the public sector
Country report: China

THE PRACTICE OF ACCOUNTING

39. Defining the scope of the accountant’s role
Definitions of the accountant’s role vary around the world. Common features include maintaining a record of an organisation’s assets, transactions and
financial activities, carrying out audits and ensuring compliance with financial and tax regulations.
The evolution towards becoming a more strategic partner within a business or as an external supplier may allow accounting to become a more
integrated part of organisations.
40. Size and complexity of the CFO’s remit
Organisations face a series of threats including macro-economic instability, consumer uncertainty, market volatility and increasing administrative complexity.
At the same time, rising energy prices and a reconfiguration of the global landscape towards the emerging economies also present prominent and
persistent challenges. As such, the role of the CFO is changing rapidly in line with constantly evolving expectations, demands and operating contexts.
41. Non-financial information and integrated reporting
The challenge of providing a total picture of organisational health is driving the move to communicate both financial and non-financial performance
data in an integrated reporting format. Non-financial information is increasingly recognised to be as important as financial information as a driver
of business value and risk. In response to demands for a holistic picture of organisational health, the model of integrated reporting is increasingly
being adopted.
42. Clarity in financial reporting and defining the audit function
The goal of financial reporting is to present shareholders and regulators with a clear picture of an organisation’s financial health.
The role of the audit function is to ensure that the accounts have been prepared in accordance with the regulatory framework, verify that the
underlying procedures are robust and that the organisation’s financial position has been clearly represented
43. Balance between external financial accounting and internal managerial accounting
A constant challenge for accountants is striking the right balance between external financial reporting requirements and internal managerial
accounting. Both are expected to become more demanding and complex over time. Furthermore, as demands grow for a more integrated and
holistic approach to external accounting, so the distinction between the two may reduce.
44. Opportunities arising from adoption of global regulation
As business globalises beyond traditional boundaries and more economies open up to adopt global practices and norms, the need for global
regulation increases. Both opportunities and challenges arise from the implementation of global regulatory systems.
There are a number of significant factors for governments, firms and accountancy practitioners trying to implement global regulations. These include
the rate of change, the distance between practitioners and those defining and implementing legislation, the operational context, and the complexity
of regulations required to deal with the range of issues.
45. Adoption of globally accepted accounting standards
The introduction and global adoption of international accounting standards is seen by many as a desirable but unachievable goal. Others argue it is
an essential prerequisite of true globalisation. In accountancy, steps towards global norms have been achieved with the International Financial
Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and International Public Sector Accounting Standards
(IPSASs) that are being aligned to IFRSs to ensure greater comparability between public and private sector financial reporting.

THE ACCOUNTANCY PROFESSION

46. Societal expectations and definitions of accounting
One of the big long-term questions for the profession is the extent to which the definition of what accounting is, and what it entails, may change over
the next decade or more. The evolving scope and nature of accounting and the role of the accountant are being shaped by changes in multiple
influencing factors. These include how the global economy is regulated, political motivations, disruptive technology developments and evolving
business expectations.
47. Flexibility, suitability and cost of accountancy training
In a changing world, the spotlight inevitably falls on the capability of the education system to respond to the continuously evolving training needs of
businesses and the professions. Economic changes, new business models and evolving regulatory demands will continue to create new and additional
strategic, accounting, compliance and reporting requirements. The profession must demonstrate its ability to operate in a state of ‘continuous
evolution’.
48. Accounting skills capacity in transitional economies
Many developing economies are now producing significant numbers of well-trained professional accountants. Others, however, may have to undergo
a fundamental transformation of their accountancy education system. Such a transformation process would include bolstering higher education
course design and teaching methods.
49. Level of entrepreneurial skills in the accountancy profession
CFOs are increasingly expected to adopt a broader strategic and entrepreneurial role across the organisation. A greater emphasis on basic
entrepreneurial skills such as business leadership, creativity, team-building, communication, negotiation and sales literacy could be integrated into
accountancy training and continuous professional development.
50. Public perception and attractiveness of the accountancy profession
The public standing of and trust in accountants are critical to the effective functioning and attractiveness of the accountancy profession. Any issues
could hamper the ability to recruit and retain top talent to the profession. Another key consideration for would-be entrants is the level of
remuneration a big issue for the public sector where salary tends to be lower.
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PI-DRIVERS-CHANGE-PUBLIC-SECTOR-CHINA

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