Accountancy and Sustainable Economic Development: A Case Study of Thailand

Abstract

Thailand’s accountancy and corporate financial reporting have seen great improvement after the 1996/97 Asia financial crisis which originated from Thailand. However, the strategic role played by strong professional accountancy system in sustainable economic development has not been given national importance as has been given other academic spheres such as science and technology. The Federation of Accounting Professions (FAP), the regulatory body of Thailand’s professional accountants, requires potential members to have successfully completed a bachelor’s degree or its equivalent in any of the approved universities in Thailand by the Federation. At any given examination, at least 3000 candidates attempt the professional CPA examination administers by the FAP. Approximately 5-6% of the candidates pass each examination. This very low passing rate is an indication of the lack of appreciation of the importance of accountancy education in Thailand and calls for change in perspective of accounting and auditing education in Thailand’s universities. This case review highlights the important role played by robust accountancy education in national development, the need for capacity building, the need to improve and maintain high quality of accountancy programs in academic institutions throughout Thailand, the creation of awareness of the high value of professional auditors and accountants in national development, and the need for transparent and sustainable reporting regime within Thailand’s corporate bodies for sustainable economic development.

Keywords: Federation of Accounting Profession, Accountancy, Economic Development, Educational Standards