Improved Living Standards and Accounting Associated with Prosperity

According to a new report, the accounting profession has strongly been linked to improved standards of living and economic growth of the nation and is expected to contribute an approximate of $575 billion in the global economy. In a study carried out on behalf of International Federation of Accountants by the Centre for Economics and Business Research, it was established that some world regions with a high number of accountants in employment have got a high per capita GDP.

The correlation between the Index of Human Development and share of accountants in employment was found to even be stronger. This index measures various indicators including income, life expectancy and years of schooling.

For once, IFAC has undoubtedly associated a strong profession in accountancy to the citizens improved standard of living. The study dubbed Nexus 2: The Accountancy Profession—A Global Value Add, was brought on Wednesday to the Singapore Accountancy Convention. The report makes a highlight on the professional importance scale in the world’s economy. It confirms an exciting economic opportunity in the fast developing South American and Asian regions. The findings also verify the IFAC’s profound importance and that of the global profession in helping to strengthen the capacity of accounting in the developing countries where accountants have a major role to play in strengthening the architecture and institutions which will help in life improvement.

Researchers computed gross value added of the sector of accounting by means of official data sets where there was poor data by comparing average wages and GVA per capita computation across the economy.

Members of the organization of the professional accounting like IFAC together with people who help in identifying their roles as accountancy support contributed approximately $ 575 billion annually in gross value added to the global economy on annual basis. Out of the whole amount, the IFAC organization of professional accountancy or members of PAO contributed 43 %.

In Europe and North America, countries that are highly developed dominate GVA while the contribution of Asia is viewed as the 3^rd highest.  In Asia, you will get 640,000 members but with an approximate of 2.6 million accountants employed in Asia by 2013, there exists a major opportunity in strengthening the profession in a voice that is unified.