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Accountancy strongly linked to prosperity

A new IFAC report has indicated that accountants contribute more than half a trillion dollars to the global economy.

Accountancy strongly linked to prosperity
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For the first time, IFAC has definitively linked a strong accountancy profession to improved living standards for citizens.

The study itself, entitled Nexus 2: The Accountancy Profession – A Global Value Add, indicated that global regions which employ a higher share of accountants have a higher per capita GDP.

Additionally, the report has indicated that there is an even stronger correlation between the share of accountants in total employment, and the UN Human Development Index (HD), which measures life expectancy, years of schooling and income.

“This report highlights the scale of the profession’s importance to the global economy,” said Fayez Choudhury, IFAC CEO.

“The finds verify the profound importance of IFAC’s mission – and that of the global profession – to help strengthen accountancy capacity in developing countries, where accountants have a significant role to play in strengthening the institutions and architecture that will improve peoples’ lives,” he added.

The study also indicated a significant opportunity to expand and develop the influence of accountancy within Asia, with 2.6 million accountants employed within the region.

“Professional accountants contribute to better information, reporting, measurement and decision-making,” noted Mr Choudhury.

"When nations have a robust system to track the flow of money in government, within businesses, and between organisations, transparency and accountability are improved, organisations are strengthened, and economies are enhanced,” he concluded.

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