2 ND AFRICA CONGRESS OF ACCOUNTANTS (AGOA) 14 TH – 16 TH MAY, 2013 CONCURRENT SESSION IV

1. 2ND AFRICA CONGRESS OF ACCOUNTANTS (AGOA)14TH – 16TH MAY, 2013CONCURRENT SESSION IV TOPIC: THE LEADERSHIP ROLE OF ACCOUNTANTS IN EMERGING AND DEVELOPING COUNTRIES Presenter KWAME BOSIAKO OMANE-ANTWI VICE PRESIDENT, INSTITUTE OF CHARTERED ACCOUNTANTS, GHANA

2. PRESENTATION OUTLINE • The plain truth about leadership role of accountants • Development taxonomies • Reflections on leadership role of accountants • Economic growth challenges • Development imperative: leadership role of accountants • Development imperative: leadership competencies • Conclusion KWAME BOSIAKO OMANE-ANTWI

3. THE PLAIN TRUTH – Cont’d “We conclude that accounting has a multiplicity of roles in national socio economic development and seeking to understand the exact role of requires an appreciation of the context, specific nature of not only accounting’s functions and roles but also development itself. KWAME BOSIAKO OMANE-ANTWI

4. THE PLAIN TRUTH – Cont’d • It is impossible to find a single set of roles for accounting that will reflect in all development paradigms. Accounting's roles in emerging and developing nation’s socio-economic development therefore vary from one development tradition to another” (Source: Rahaman, A.S (2005) University of Calgary , Alberta, Canada) KWAME BOSIAKO OMANE-ANTWI

5. THE PLAIN TRUTH – Cont’d “There are two kinds of people in the world; those who divide the world into two kinds of people and those who don’t (Robert Benchley).” “In the 1970s. Less economically developed countries (LEDCs) was the common term for markets that were less developed than the developed countries such as the USA, Western Europe and Japan.” KWAME BOSIAKO OMANE-ANTWI

6. THE PLAIN TRUTH – Cont’d These markets were supposed to provide greater potential for profit but also more risk from various factors. This term was felt by some to be not positive so the emerging market was born”(Ken, J. R, 2004). KWAME BOSIAKO OMANE-ANTWI

7. DEVELOPMENT TAXONOMIES Alternative Dichotomons Taxonomy Most Developed Countries Taxonomies in selected International organizations Alternative Trichotomons Taxonomy Developed Countries Developing Countries Developed Countries Developing Countries Higher Development Countries Middle Development Countries Lower Development Countries Average Developed Countries Least Developed Countries (Source: IMF (2011) Working Paper WP/11/31) KWAME BOSIAKO OMANE-ANTWI

8. QUESTIONS TO REFLECT ON TO BETTER UNDERSTAND THE ROLE OF ACCOUNTANTS IN ECONOMIC DEVELOPMENT • Are professional accountants crucial economic actors in the capital market economy? • Is professional accounting a value-adding function? • What does the business community expect of professional accountants? • How can professional accountants respond to continuous environmental changes? • Do accountants have a role to play in achieving MDGs? KWAME BOSIAKO OMANE-ANTWI

9. THE ROLE OF CAPACITY BUILDING IN MDGS ACTUALISATION AND NATIONAL DEVELOPMENT Note: “Accountants are the catalyst in capacity building helping to develop and strengthen the skills, abilities, processes and resources needed to achieve MDGs” (Igbuzor, 2006): KWAME BOSIAKO OMANE-ANTWI

10. ECONOMIC GROWTH CHALLENGES: THE ROLE OF ACCOUNTANTS Factors mitigating against economic growth in emerging / developing nations: KWAME BOSIAKO OMANE-ANTWI

11. DEVELOPMENT IMPERATIVES: A LESSON FOR AFRICA “Today, being the biggest developing countries in the world, China and India are both committed to developing their economies and raising their people’s living standards (Li PENG) KWAME BOSIAKO OMANE-ANTWI

12. DEVELOPMENT IMPERATIVE: LEADERSHIP ROLE OF ACCOUNTANTS • Producing information for rational decision-making • Accumulating the necessary data, analyzing and interpreting these data and reporting the resulting information to corporate management, heads of governments, institutions and other stakeholders. • Attestation role • Provided much needed assurance that people in trusted positions are conducting their affairs honestly and in accordance with accepted policies. KWAME BOSIAKO OMANE-ANTWI

13. DEVELOPMENT IMPERATIVE: LEADERSHIP ROLE OF ACCOUNTANTS - Cont’d • National Level Policy Making • Accounting contributes in providing national income data and highlights the trends in the various components to help decision-making. • National annual budget process • Public Financial Management- both at the micro and macro levels. KWAME BOSIAKO OMANE-ANTWI

14. DEVELOPMENT IMPERATIVE: LEADERSHIP ROLE – Cont’d Note: high quality corporate reporting and use of IFRS, IAS and ISAs is key: • Improving transparency • Facilitating the mobilization of domestic and international investment • Creating a sound investment environment, faster investor confidence thus promoting financial stability KWAME BOSIAKO OMANE-ANTWI

15. DEVELOPMENT IMPERATIVE: LEADERSHIP ROLE – Cont’d • Facilitate international flow of financial resource • Strengthens international competitiveness of enterprises in attracting external financing and taking advantage of internal market opportunities. KWAME BOSIAKO OMANE-ANTWI

16. Development Imperative: Role in Public Sector • Helps to reform of Government Accounting Systems to reap: • Transparency, consistency and completeness • Better information on sustainability of fiscal policies • Stronger basis for accountability to achieve value for money (i.e. economy/efficiency, effectiveness and equity) KWAME BOSIAKO OMANE-ANTWI

17. DEVELOPMENT IMPERATIVE: ROLE IN PRIVATE SECTOR Note: Professional Accountants provide invaluable services in: KWAME BOSIAKO OMANE-ANTWI

18. DEVELOPMENT IMPERATIVE: LEADERSHIP ROLE OF ACCOUNTANTS AND THE EMPOWERMENT ACCOUNTING FACTOR Note: Empowerment Accounting is a new type of measurement necessary in the global economy today for competitiveness and economic progress • Shows the broader array of financial and non-financial information with employees • Trains employees to become more business literate KWAME BOSIAKO OMANE-ANTWI

19. DEVELOPMENT IMPERATIVE: LEADERSHIP ROLE OF ACCOUNTANTS AND THE EMPOWERMENT ACCOUNTING FACTOR – Cont’d • Turns employees into true business partners • It is a changed in paradigm to enable accountants regain their role as one of the key drivers of the knowledge engine in an information-age economy KWAME BOSIAKO OMANE-ANTWI

20. DEVELOPMENT IMPERATIVE: LEADERSHIP ROLE OF ACCOUNTANTS IN PUBLIC ACCOUNTING • Professional Accounting is synonymous with Public Accounting since it is considered so important to the public good. • Bridging the expectation gap – image of accountants seriously dented by corporate scandals • Developing different ground rules for SME’s • Making accounting information user-friendly to CEO’s and non-accountants KWAME BOSIAKO OMANE-ANTWI

21. DEVELOPMENT IMPERATIVE: ROLE IN THE AGE OF CORPORATE GOVERNANCE • Using strategic audits to promote good governance and create value by enabling managers to make well-informed decisions • Using forensic accounting skills to compliment the work of various offences to fight corruption KWAME BOSIAKO OMANE-ANTWI

22. DEVELOPMENT IMPERATIVE: ROLE IN THE AGE OF CORPORATE GOVERNANCE – Cont’d • To extend the primary watchdog responsibility to protect the public interest to reduce corruption (IFAC mandate). In money laundering /terrorism – accountants have an imposed obligation (IFAC mandate) to help drive a crusade to combat the menace. KWAME BOSIAKO OMANE-ANTWI

23. DEVELOPMENT IMPERATIVE: ROLE IN HEALTH CARE SECTOR Note: Accountants can help to lower the ever escalating cost in health care by focusing on four (4) core areas: • Information system • Logistics management • Quality management • Electronic health KWAME BOSIAKO OMANE-ANTWI

24. DEVELOPMENT IMPERATIVE: MODEL OF INFORMATION TECHNOLOGY FOR DEVELOPMENT ICT Effects Social Development Access to Information and Expertise Human Development Government Environment Competiveness and Access to markets Education Health Care Gross Domestic Product Financing Administrative Effectiveness Innovation Learning and Labour Productivity Sourcing Per Capita Income Poverty Reduction KWAME BOSIAKO OMANE-ANTWI

25. DEVELOPMENT IMPERATIVE: LEADERSHIP ROLE OF ACCOUNTANTS IN THE GREEN GROWTH DEVELOPING COUNTRIES (OECD REPORT – 2012) • Accountants encourage clients: • To be socially responsible as well as making continuous contribution to the environment • Accountants provide assurance services to companies to meet Elkington “ triple bottom line” concept by focusing on: • Economic • Environmental and • Social value that companies add or destroy KWAME BOSIAKO OMANE-ANTWI

26. DEVELOPMENT IMPERATIVE: LEADERSHIP ROLE OF ACCOUNTANTS IN THE GREEN GROWTH DEVELOPING COUNTRIES (OECD REPORT – 2012) – Cont’d • Economic diversification – i.e. improved management of economic risk • Increased productivity and efficiency of natural resource use • Decent jobs that benefit poor people created and sustained • Reduced inequality KWAME BOSIAKO OMANE-ANTWI

27. Development Imperative: outcome of accountants action • Accountants role/ actions help to acquire and deploy: • To minimize NATIONAL MISERY INDEX (NMI) • To improve standard of living on sustained basis • Accountant role/actions impact on strategies to increase the quality and quantity of the wealth of nations which confirms: • The thrust of economic growth, development and empowerment and confirm • The real essence of the accountancy profession KWAME BOSIAKO OMANE-ANTWI

28. RANK ORDER OF AVERAGE PERFORMANCE IN LEADERSHIP COMPETENCE IN 3 AFRICAN REGIONS (Source: Centre for Creative Leadership Reserve 2010) KWAME BOSIAKO OMANE-ANTWI

29. COMPETENCE FRAMEWORK FOR THE 21ST CENTURY ACCOUNTANT IN AFRICA Delivering a professional service Contribute to business success Demonstrati-ng Professional Expertise Building professional credibility Delivering Customer -focus service Responding to Customer Needs Providing Excellent Customer Service Promoting Sharing of Best Practices TQM Analyzing, Improving and Deliver Change Analyzing and Using Evidence Improving Performance Continuously Engaging with Change Managing People & Performance Delivering Results Delivering People/ Resourcing Effectively Managing Finance Building Capacity Delivering Knowledge/Skills Working Collaborativ-ely Communicating with Impact Lead by Example Demonstra-ting Integrity Create vision/ Provide Direction Lead in the Cost Reduction Mode (Source: Empowerment Accounting Framework; Omane-Antwi, B, 2011) KWAME BOSIAKO OMANE-ANTWI

30. CONCLUSION A strong accounting landscape as confirmed by the Reports on the Observation of Standards and Codes (ROSCs – World Bank/IMF imitative) is essential to economic development and also economic confidence, both in the public and in the public sector. KWAME BOSIAKO OMANE-ANTWI

31. CONCLUSION – Cont’d Truly, accounting is the starting point for making a difference in developing countries owing to its pivotal role and contribution to economic development at the macro and micro levels. “It is the power behind the throne and the priesthood of industry in the 21st Century.” (Omane-Antwi, B, 2011.) KWAME BOSIAKO OMANE-ANTWI

32. THE ENDTHANK YOU Prof. K. B. Omane-Antwi Monday, May 06, 2013 PROF. KWAME BOASIAKO OMANE-ANTWI PHD, MBA, MA, ITP (HARVARD) AMP(OXON),FCCA, FRSA(UK), FBI(Hon), FIOD(UK), FIOD(GH), FCIM, MCIPD, MIMIS PROFESSOR OF ACCOUNTING & VICE RECTOR PENTECOST UNIVERSITY COLLEGE SOWUTUOM TEL 0244-320448/0202011775 E-MAIL: kbomane@pentvars.edu.gh kbomane@yahoo.com FACILITATOR KWAME BOASIAKO OMANE – ANTWI

33. REFERENCES • ACCA (2012); “The role of accountancy in economic development”; Accounting for Development Forum, Doha, Qator • Abani, C; Igbuzor, O. and Moru, J. (2005) Attaining the MDGs in Nigeria, Nigeria Social Forum. • Chua, W.F. (1986) Radical Development in Accounting Thought: The Accounting Review Vol 1, No 3, pp 601 – 632 • Eckert, R. and Rweyongoza, S. (2010) Leadership Development in Africa, Center For Creative Leadership (Europe, Middle East, Africa) Brassels • Financial Stability Board; IMF and World Bank (2011) Report to the G-20 Finance Ministers and Central Bank Governors. KWAME BOSIAKO OMANE-ANTWI

34. REFERENCES • Farhadi CM Walid (2009), “The role of accounting in the Iran.. Economy” Paper # 34. • Igbezer O. (2006). MDGs: Can Nigeria meet the goals in 2011? Institute of Chartered Accountants of Nigeria (ICAN), Conference Abuja • OECD (2012) Green Growth & Developing Countries: A summary for Policy Makers • Quereshi (2005) how do ICT effect development? Integrating Theory into a Process Model; America Conference on ICT, Omaha. • Sushash Chandra, J. (2006) Emerging Economies and the Transformation of International Business, Edward Elgar Publishing KWAME BOSIAKO OMANE-ANTWI