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AB Accounting and Business
Singapore Accounting and Business September 2019
Singapore September 2019
Crypto queen
Zann Kwan, CEO and co-founder
of Bitcoin Exchange
Bonds of gold
The economic success of the Greater
Bay Area depends on connectivity
Guru guide
Mentoring is a powerful tool for
developing key career skills
Starry future
Accountants and the commercial
exploitation of outer space
SG_COV_ZannKwan_Bitcoin.indd 1 17/07/2019 12:35
CPD –
are you
on track?
Now is the right time to review your CPD – you still have time
for additional learning to meet the CPD requirement.
Find resources and advice at www.accaglobal.com/cpd
AP_insidecover.indd 1 15/07/2019 15:28
Welcome
While the concept of the mentor may be almost 3,000 years old, the role has
never been more important and highlights the crucial power of connections today
The word ‘mentor’ has its roots in one Macau and nine cities in Guangdong
of the epic tales penned by Greek poet province. Taking its inspiration from
Homer. In the Odyssey, written nearly examples in Tokyo and San Francisco,
3,000 years ago, Ithaca’s king Odysseus the GBA aims to accelerate economic
seeks out the older, trusted Mentor growth in the region, and professional
from his network of friends and tasks accountants can expect to see an
him with offering wise counsel to his son increase in demand for their skillsets.
Telemachus while he goes off to fight Meanwhile, practices in Malaysia
in the Trojan War. In modern usage, are leveraging off the Belt and Road
‘mentor’ means someone who imparts initiative, as Chinese businesses seek
wisdom; finding someone reliable and to expand into Malaysia and local
experienced to act as a guide and companies dip their toes into the China
confidante is just as relevant in classical market (page 30).
Greece as it is in today’s workplace. For our big interview, we hear from
In this issue, we continue our theme Zann Kwan FCCA, CEO and co-founder
of the ‘power of connections’ by of Bitcoin Exchange (page 12). The
looking at how professionals have found accountant-turned-tech entrepreneur
mentoring a powerful tool for sharing explains why she wants to bring
knowledge and learning (page 54). On cryptocurrencies to the masses through
page 16, columnist Chris Davis argues partnering with industry pioneers.
that transferring sagely advice is just Finally, we speak with three married
the half of it; a meaningful mentoring couples who met and bonded through
relationship can offer the mentor a new ACCA. They share their stories of
outlook and an insight into the work studying for accountancy exams and
ethics of younger, tech-savvy staff. tying the knot, on page 64. AB
On page 24, we hear how connectivity
is at the heart of the Greater Bay Area Colette Steckel, Asia editor
(GBA) initiative, covering Hong Kong, colette.steckel@accaglobal.com
Accounting and Business About ACCA Leadership
The leading monthly magazine for ACCA (the Association of Chartered President: Robert Stenhouse FCCA
Deputy president: Jenny Gu FCCA
finance professionals, available in seven Certified Accountants) is the global Vice president: Mark Millar FCCA
different versions: China, Ireland, Malaysia, body for professional accountants. It Chief executive: Helen Brand OBE
Singapore, UK, Africa and International. offers business-relevant, first-choice Member services
* Magazine contacts, page 66 qualifications to people of application, ACCA office details, page 66
ACCA Connect: +44 (141)582 2000
* Available in app and pdf ability and ambition who seek a
members@accaglobal.com
* AB Direct: weekly news bulletin rewarding career in accountancy, finance
and management. ACCA supports its
accaglobal.com/members
AB is circulated to all members in print
Our alliance with CA ANZ
and digital formats. ISSN No: 1460-406X 219,000 members and 527,000 students More about ACCA’s alliance with Chartered
More at accaglobal.com/ab in 179 countries. accaglobal.com Accountants ANZ: accaglobal.com/alliance
September 2019 Accounting and Business 3
SG_Welcome.indd 3 18/07/2019 12:37
22 30
Practice
27 The view from
Chhay Boraniel of
KPMG, Cambodia, plus
practice news
28 Knowledge gap
The auditor’s public
profile needs to improve
30 BRI boost
Malaysia is tapping
into the Belt and
Road initiative
32 The Italian job
Italy offers diverse
business opportunities
Insights
35 News in infographics
News Comment Corporate Private wealth holdings
grow in the world’s
6 News in pictures 16 Chris Davis 21 The view from
richest countries
A different view of Mentoring offers a varied Terence Kyaw Thuya of
Yoma Bank, Myanmar, 36 The final frontier
recent headlines menu of intangibles
plus corporate news The opening up of outer
8 News in brief 17 Errol Oh space needs help from
The ‘rate-and-review’ 22 The digital age
Digest of developments accountants
AI expert Dr Ayesha
across the globe culture is gaining ground
Khanna looks at how the 38 Uncharted territory
18 Manu Bhaskaran profession will evolve Finance’s journey into the
Interview Interest in ASEAN grows future won’t be easy
24 CPD Get ready for GBA
12 Zann Kwan 19 ACCA president The Greater Bay Area will 40 Keep it in the family
CEO and co-founder, Robert Stenhouse on increase opportunities The wealthy are looking
Bitcoin Exchange making connections for accountants for support services
6 24 28 38
4 Accounting and Business September 2019
SG_CON_contents.indd 4 18/07/2019 11:08
40 46 54 56
42 Good news, bad news 62 Going up
Technical People
Integrated reporting The ACCA brand is
must cover all angles 48 CPD No more Libor 56 In the bag universally respected
Implications of interest Tania Brown unites 64 Double take
Careers rate benchmark reform fashion and networking Meet the couples who
44 CPD Shake on it 52 Technical update fell in love over an
Building trust with
ACCA
The latest on audit, ACCA paper
colleagues is vital tax and reporting 58 Annual conference 66 Update
Industry 4.0 was top of Members can benefit
Management Basics the agenda from a range of
46 CPD Dual control 54 Listen and learn 61 Council resources to enable
Shared leadership can Mentoring should be a Highlights from the them to build networks
boost team performance two-way street meeting held in June and connections
12 58
‘A friend in the IT
industry pulled
me aside and
told me to stop,
warning me that
my professional 62
reputation was
at stake’
66
September 2019 Accounting and Business 5
SG_CON_contents.indd 5 18/07/2019 11:09
6 Accounting and Business September 2019 AP_Newsinpix.indd 6 18/07/2019 10:42
Adidas has failed
to establish a wider
trademark for its three-
stripes symbol in the
European Union. The
value of the German
sporting good brand,
which is worth US$14.3bn,
could be diminished as a
result of the ruling.
Facebook has launched
Libra, a digital currency.
While the move could
be a game-changer
for the global banking
system, the social media
company, which has
almost 2.4 billion users,
is already facing scrutiny
over its use of data.
Billionaire British inventor
James Dyson has
bought a S$73.8m luxury
penthouse, thought to be
the most expensive flat
in Singapore. The creator
of the bagless vacuum
cleaner is moving his
company’s headquarters
to the city-state.
Former Uefa president
Michel Platini has been
questioned in connection
with an investigation
into alleged corruption
relating to Fifa’s decision
to host the 2022 World
Cup in Qatar. He told
reporters that his
conscience was ‘clear’.
September 2019 Accounting and Business 7
AP_Newsinpix.indd 7 18/07/2019 12:41
News in brief
This edition’s stories and infographics from across the globe, as well as a look
at the latest developments and issues affecting the finance profession
London link planned Stock Exchange’s main Audit access more focus on intangibles
A proposed linking of the market, while companies Chinese securities regulators that underpin companies’
Shanghai and London with a premium listing have agreed to allow their long-term success. ‘And
stock exchanges has in the UK will be able to Hong Kong counterpart to of course, companies
the joint approval of the apply for admission to access the audit working would be expected to tell
Financial Conduct Authority the main board of the papers of Hong Kong-listed how sustainability issues,
and the China Securities Shanghai Stock Exchange. mainland companies. A including climate change,
Regulatory Commission. The announcement tripartite memorandum may impact their business if
The Shanghai-London was accompanied by of understanding signed that impact is material.’
Stock Connect will enable a memorandum of by China’s Ministry of
Shanghai-listed Chinese understanding aimed at Finance, China Securities CFOs, be brave
companies to apply to be providing the basis for the Regulatory Commission Bursa Malaysia chairman
admitted to trading on a regulatory co-operation that and the Securities and Shireen Ann Zaharah Muhi-
newly formed Shanghai will support the success of Futures Commission (SFC) udeen has put the onus on
segment of London the scheme. agrees to provide the ‘fullest CFOs to be gatekeepers
assistance’ to SFC when of their company to ensure
conducting investigations transparency and instil inves-
Sustainability check into audit documents tors’ confidence in business
Switzerland, Singapore and the US are the most sustainable created by Hong Kong and capital markets. Speak-
investment markets in the world, with companies listed accounting firms and kept in ing to reporters after her
in these countries delivering the most positive social and the mainland. keynote speech at the Malay-
environmental benefits, according to Schroders. By contrast, sian Institute of Accountants
Indonesia, Russia and Thailand were the least sustainable Strengthening IFRS CFO Conference, Shireen
markets, with companies there having the most negative social The International Accounting said CFOs must be willing to
and environmental impacts. Standards Board (IASB) has raise red flags when they see
Social and environmental impact (US$) per US$100 of sales outlined plans to strengthen irregularities: ‘It cannot be a
10 5 0 (5) (10) (15) (20) (25) (30) (35) the relevance of financial situation where CFOs are too
Switzerland reporting in two specific frightened to say anything.’
areas: primary financial
Singapore
statements and management Working together
US commentary. The proposals, ACCA has welcomed
France
outlined by IASB chair Hans the policy outcomes
Hoogervorst at the IFRS of the recent UK-China
Finland Foundation Conference in Economic and Financial
Brazil London, will create more Dialogue held in London,
structure in the income which marked a major step
Malaysia
statement and enhance forward in strengthening
Thailand comparability, and help links between the two
Russia management provide a countries. ACCA is playing a
broader context for financial significant role in supporting
Indonesia
statements. Hoogervorst the internationalisation
Source: Schroders
added that there will be of China’s accounting
8 Accounting and Business September 2019
AP_N_newsinbrief.indd 8 18/07/2019 10:23
profession and is working Banks bend rules ACCA recognised Americas, collected the
with the Shanghai National China’s National Audit ACCA won two awards award on behalf of ACCA.
Accounting Institute (SNAI) Office has found that three at the annual memcom
on a research project of the top five banks in awards (for professional Crypto audit tool
administrated by China’s the country have illegally associations) in London in PwC has launched a new
Ministry of Finance and charged enterprise June. ACCA was awarded tool supporting the audit of
funded by the World Bank. borrowers over RMB230m professional body of the cryptocurrencies. The latest
Helen Brand, ACCA’s chief (US$33.5m) in financing year, based on the ACCA addition to the network’s
executive, said: ‘It’s great fees. Lenders were also Qualification, professional Halo suite of auditing tools
to see the power of ACCA’s found to be favouring insights, audit work, and can be used to provide
connections and our joint borrowers with deposits clear strategy; and best assurance services to clients
work with SNAI being at their banks, and linking member engagement transacting in bitcoin, bitcoin
recognised so positively loans to the sale of other strategy, based on the cash, bitcoin gold, bitcoin
by the UK and Chinese products. According to campaign around ACCA’s diamond, litecoin, ethereum,
governments.’ Professor Regulation Asia, these 200,000 member landmark. ERC20-OAX token and ripple
Li Kouqing, president were among dozens of ACCA was also awarded (XRP). James Chalmers,
of SNAI, added: ‘As violations revealed in the ‘highly commended’ in the global assurance leader at
strategic partners, we have audit office’s annual budget best student engagement PwC, says: ‘It is important
maximised our advantage review as submitted to the category, based on ACCA as companies continue to
in talent development, National People’s Congress. UK’s Future Talent Academy digitise that we, as auditors,
professional insights and The review was based initiative. Tonia Galati, keep up with technology
global network through on data up to the end of employability engagement changes in the market,
our collaboration.’ March 2019. lead for Europe and continue to develop audit
September 2019 Accounting and Business 9
AP_N_newsinbrief.indd 9 18/07/2019 10:23
Powerful passports AI boosts jobs
Japan and Singapore have The Monetary Authority of
the world’s most travel- Singapore’s announcement
friendly passports, offering of a S$27m artificial
visa-free or visa-on-arrival intelligence and data
access to 189 countries each. analytics (AIDA) grant is
Next come South Korea, expected to boost jobs
Finland and Germany, whose in the financial sector.
citizens are able to access Research conducted by
187 jurisdictions around recruiter Robert Half has
the world without a prior found that 86% of CFOs
visa. That’s according to the in Singapore are already
Henley Passport Index, which implementing AI or data
is based on data from the analytics programs, or plan
International Air Transport to in the next 12 months. Of
Singapore leads on fintech adoption Association. Five years ago, those, 30% expect to hire
Fintech adoption among Singapore consumers has almost the US and the UK topped additional permanent finance
tripled in just two years, EY research finds. With the adoption the rankings: both countries professionals to implement
rate jumping from 23% in 2017 to 67% in 2019, Singapore is are now in sixth place, the AI programs in the next 12
leading the way as the average rate across the globe and Asia lowest position either has months, while 22% plan
Pacific rose to 64% (from 33% in 2017) and 63% respectively. held since 2010. temporary positions.
Mainland China and India have the highest rate of consumer
fintech adoption globally (87%). Board diversity Top for compliance
Varun Mittal, EY global emerging markets fintech leader, Malaysia’s large banks Singapore ranks first in a
expects even higher adoption rates in Singapore in future due have the highest board study of the compliance
to the supportive regulatory environment. ‘Singapore may be representation for women requirements and
a relatively small business-to-consumer (B2C) market by size, across the South-East Asian administrative burden
but it is a hotbed for innovation and a great launchpad for region. According to data associated with adhering
start-ups and businesses to build their technology, test it and compiled by Bloomberg to value added tax (VAT)
then scale across South-East Asia,’ he said. ‘We’re also seeing from published information, and goods and services tax
an emerging trend towards industry convergence, with sector women make up more (GST) rules. Conducted by
leaders in adjacent industries such as transport, retail, and than 30% of the boards UNSW Sydney and KPMG,
telecommunications increasingly offering digitally enabled of top Malaysian lenders, the research found that 14
financial services,’ Mittal added. ‘This is yet another area in compared with only 9% on out of 47 jurisdictions scored
which we believe that Asia will take a leading role.’ average in the Philippines favourably with a compliance
and 13% in Singapore. burden index of four or less,
The best performing while 15 countries were rated
tools that meet the needs reveals ACCA and CA individual bank in the with a score of six or more,
of emerging technologies ANZ’s new Audit and ranking was Bangkok-based suggesting a need for policy
and serve the changing and technology report. In Kasikornbank, where female reforms to help reduce the
developing demands of noting that auditors need directors make up almost compliance burden. After
our stakeholders.’ to adapt to the changes 40% of the 18-member Singapore came Australia,
in business models, the board. Malaysia’s corporate Costa Rica, New Zealand and
The human touch report also finds that governance code requires South Africa.
The full implementation of the human relationship that women hold at least
artificial intelligence and between client and auditor 30% of board seats at local Trade stance softens
related technologies could remains important: not firms, whereas Thailand China has softened
raise questions about the everything can be replaced has no requirement for restrictions on foreign
auditor’s independence, by technology. representation of women. investment in new sectors,
10 Accounting and Business September 2019
AP_N_newsinbrief.indd 10 18/07/2019 10:23reducing the list of Corporation – a government
industries that are closed agency that oversees Watch this (office) space
to, or regulated for, foreign the tech sector – would Hong Kong’s Central district is the world’s most expensive
investment, from 48 to enable foreign talents with market for prime office rents for the fourth consecutive year,
40. The announcement professional qualifications according to CBRE’s Global Prime Occupancy Costs report. Six
came a day after China’s or skills to enter Malaysia of the 10 most expensive office markets are in Asia, thanks in
President Xi Jinping and US for up to 12 months to part to continued economic growth and job gains.
President Donald Trump either provide services or
met on the sidelines of the undergo practical training Top 10 most expensive prime In US$, per sq ft
per year, as of
G20 summit, agreeing to with a Malaysian company. office markets Q1 2019
restart trade talks that were As reported in the Star,
1. Hong Kong (Central) 322.0
abruptly halted in May. The the programme would
changes came into effect on encourage tech tourism and, 2. London (West End), UK 222.7
30 July. in turn, the visiting talents
3. Hong Kong (Kowloon) 208.67
would also upskill local staff
Talent hub working with them. 4. New York (Midtown – Manhattan), US 196.89
Hong Kong has opened a 5. Beijing (Finance Street), China 187.77
new centre of excellence Jobs fear
6. Beijing (CBD), China 177.05
for developing financial Almost half of Asia-Pacific
leadership. Established by finance professionals 7. New York (Midtown – South 169.86
the Hong Kong Monetary surveyed fear their jobs will Manhattan), US
Authority, the Hong Kong vanish or change substantially 8. Tokyo (Marunouchi/Otemachi), Japan 167.82
Academy of Finance will due to artificial intelligence
9. New Delhi (Connaught Place – CBD), 143.97
develop and run a leadership (AI) and other technologies
India
development programme over the next decade. A poll
for senior management by the CFA Institute, a global 10. London (City), UK 139.75
and promising talents association of investment
from financial institutions, professionals, found that
regulators, professional the top three jobs expected the network believes may Stronger links
firms and academia in to disappear in Asia Pacific attract new institutional ACCA has entered into
the field of finance. A include accountants or investors to the sector. partnership with the
research component of auditors (17%), research Services will be provided UK-ASEAN Business
the academy will analyse analysts (13%) and stock via a partnership with Council. The agreement
future development sales agents (9%). However, Singapore and Sydney-based will help the organisations
trends, exploring areas Nick Pollard, managing Decentralised Capital, a support the rapid growth of
like green finance and director for the region, said specialist blockchain firm. domestic and transnational
fintech with insights from technical disruption did not Tim Aman, BDO’s national business in South-East
international experts. equate to fewer people in leader for financial services, Asia. ‘ACCA very much
the investment industry. ‘It said one of the biggest sees ASEAN as a major
Tech talents wanted only means professionals barriers holding institutional driver of pan-Asian growth
Malaysia is considering a will need to learn new investors back is the lack over the next decade,’
pilot work visa program skill sets to handle more of transparency about the said Helen Brand, ACCA
targeting tech freelancers sophisticated tasks which AI quality of digital assets. ‘By chief executive. ‘As
to come to the country on cannot perform.’ providing comprehensive trade links strengthen,
short-term contracts, initially audit and assurance services, so does the potential for
in the blockchain sector. Crypto game-changer our entry into this growing greater harmonisation of
The Digital Freelancer BDO Australia has launched sector will be a game international standards.’ AB
Programme proposed by audit services for blockchain changer for new investment
Malaysia Digital Economy and crypto assets, a move into this asset class,’ he said. Peta Tomlinson, journalist
September 2019 Accounting and Business 11
AP_N_newsinbrief.indd 11 18/07/2019 10:23Access all areas
When Zann Kwan FCCA, CEO and co-founder of Bitcoin Exchange, saw the potential
of cryptocurrency, she made it her mission to bring the technology to the masses
F i
rom an early age, Zann Kwan, CEO What began as serendipitous encounters
CV
and co-founder of Bitcoin Exchange, in New York eventually turned out to be a
has always had a mind for business. fulfilling career in real estate investment.
While still a student in junior college, 2019 By 2012, Kwan had established a credible
she started her first venture selling Director, digital services, reputation in the industry. She had an
pop star posters that she had acquired Crowe Singapore impressive resume that included serving as
from a wholesaler in China. So when it vice president in two real estate investment
came to choosing her university major, 2015 companies in New York, as well as being
Kwan naturally wanted to pick business Board member, ACCESS, vice president for real estate at GIC – a
administration. A mentor, however, Singapore sovereign wealth fund established by the
suggested choosing accountancy because Singapore government to manage its
of its value as a professional degree. 2013 foreign reserves.
It was a hard decision but, today, Kwan CEO and co-founder, Bitcoin
is glad she decided to follow that advice, Exchange, Singapore Changing perceptions
having seen first-hand how her grounding It therefore came as a surprise to friends and
in accountancy has helped her to succeed 2010 associates when Kwan launched a company
across a variety of environments. ‘My Vice president, GIC Singapore that dealt with cryptocurrency in 2013. At
degree in accountancy helped me to that point, she says, many people held
understand business, rather than just how 2007 unfavourable opinions about the industry,
to do business,’ she says. Vice president, acquisitions, associating cryptocurrencies with drugs and
The first time Kwan experienced the Andalex Group, New York other vices. ‘A friend of mine who was a
benefits of her accounting qualification was senior executive in the IT industry pulled me
in 2001, when she was seconded to Arthur 2005 aside and told me to stop, warning me that
Andersen’s New York office, three years Vice president, Allstone my professional reputation was at stake,’
into her first job. What should have been Capital Group, New York says Kwan. ‘I was really quite shocked to
an exciting time, however, soon turned into learn about how negative the perception of
distress as she watched the accounting 1998 bitcoin – and other cryptocurrencies – was
giant slowly collapse before her eyes. Auditor in Singpore then for so many people.’
Instead of having to turn around and go senior auditor in New York, For Kwan, however, setting up Bitcoin
home, however, Kwan found herself being Arthur Andersen Exchange, which introduced Singapore’s
presented with an opportunity to move first public bitcoin ATM in 2014, was hardly
into real estate development when one a spur-of-the-moment decision but the
of her audit clients offered her a job. Impressed by how she culmination of her earliest desires to go into business, as
approached the property investment business, they felt that well as her growing interest in cryptocurrency. On top of this,
she would make a welcome addition to the team. during her time in the real estate business, Kwan had observed
Kwan says that moving to real estate was especially sweet how tech companies tended to make good property clients.
because of the fact that she was not hired as an accountant. ‘The first time I read about bitcoin was in 2012 and I was
Rather, because of her strength in numbers, she was able to struck by its potential as an avenue for value transfer, and
move laterally to become an investment manager. ‘True to how it could be used to provide financial services for the
what my mentor had said many years ago, my background unbanked,’ she says. ‘This was also when I first thought about
in accounting and strength in numbers was something that I buying bitcoin. However, I wasn’t quite sure how to do so as
could easily transfer to other industries,’ she says. many of the websites did not appear to be trustworthy.’
12 Accounting and Business September 2019
SG_INTER_ZannKwan_Bitcoin.indd 12 16/07/2019 17:01‘A friend in the IT
industry pulled
me aside and
told me to stop,
warning me that
my professional
reputation was
at stake’
September 2019 Accounting and Business 13
SG_INTER_ZannKwan_Bitcoin.indd 13 16/07/2019 17:01Zann Kwan is pictured beside a wall painting by artist Yip
Yew Chong in Singapore’s Mohamed Ali Lane.
Just a year later, she dramatically took the next step. As she However, she found that her background in accounting
was about to give birth to her first baby, an old friend in New gave her a leg-up in certain areas such as cashflow. ‘I knew,
York called to tell her that he had bought a bitcoin ATM and for example, that one of the biggest liabilities for companies
asked if she would be interested in bringing it to Singapore. were rental costs. Hence, when we were looking for a space to
‘I told him, “Give me a month. Let me look into it after I give set up Bitcoin Exchange, we decided to get a bigger unit so
birth.” Soon after my baby was born, I started looking around that we could share our office space with other companies and
and discovered that hardly anybody knew about bitcoin freelancers,’ she says. ‘Besides reducing our operating costs,
ATMs,’ Kwan recalls. ‘This experience, combined with my own we were even able to make a profit.’
difficulties of trying to purchase bitcoin, convinced me that it Another thing that Kwan brought to the table was her
was a feasible business to bring cryptocurrency to the masses.’ understanding of how to implement proper business controls.
She shares that in the early days of bitcoin, there were hardly
Numerous challenges any finance professionals or accountants in the business.
Like many entrepreneurs, Kwan soon discovered that she Pointing to the infamous collapse of Mt Gox, a Japanese
would have to overcome numerous challenges in order to cryptocurrency exchange, she says, ‘That was a result of internal
reach her objective. The first was finding a landlord who would control failure rather than a fault with the technology. This is why
be willing to house her ATM machine. I keep stressing how important strong controls are in a start-up.
‘I had to do quite a bit of convincing and explain what It doesn’t have to be very complicated. But you need a paper-
this new technology was all about,’ she says. ‘It took a lot of and-process trail minimally so that you are able to scale.’
presentations to many different landlords before I was able to By 2015, Kwan realised that in order for her business to be
find a suitable home.’ successful, she would also need to do something to change
Then there were the regular rigours of running a start-up public perceptions of cryptocurrencies, and help create a more
business, from administration to operations and everything in robust and connected ecosystem between stakeholders and the
between. ‘If you’ve never personally experienced working in a government. To achieve this, she partnered with other industry
start-up, it may be hard to fully comprehend what it means to pioneers to set up ACCESS – one of the first associations in the
have to do everything,’ Kwan says. region dedicated to the advocacy of cryptocurrencies.
14 Accounting and Business September 2019
SG_INTER_ZannKwan_Bitcoin.indd 14 16/07/2019 17:03Singapore’s potential portfolios. ‘It was definitely tough pursuing ACCA while juggling
‘We strongly believed that a 100-hour work week at Arthur Andersen, but I’m glad that I
Singapore has tremendous persevered,’ she says. ‘It has provided me with an international
potential as a crypto hub,’ perspective that has proven useful time and time again.’
Kwan says. ‘Unfortunately, Beyond enhancing her technical knowledge of global
the industry was still very financial practices, Kwan says that ACCA also aided her by
negatively viewed by the providing her with a valuable international network. Recalling
banks, who associated it the time when she was based in New York, she shared that
with money laundering the tight-knit group of ACCA members would often gather
and terrorist financing. to exchange job and business opportunities, and update one
That negative image was another on industry changes.
not unsimilar to that of the ‘Because the profiles of ACCA members were so diverse
internet and mobile phone and international, it really helped me to build roots in a new
industries in their nascent country,’ she says, adding that many remain lifelong friends.
years. We knew that we Kwan also advises finance professionals to define their
needed to speak as one career objectives and take digestible steps to achieve them.
voice, to get more support ‘Think big but do small,’ she says. ‘For me, one of the big
from the government and challenges I faced in starting Bitcoin Exchange was having to
industry leaders.’ pick up new skills in IT and coding. Instead of letting myself
From giving university become overwhelmed, I decided to start with just 15 minutes
lectures to speaking at of reading a day, which soon turned into 30 minutes and
events such as ACCA’s 2018 eventually an hour.’
Ethics Film Festival, Kwan Finally, she believes in the importance of maintaining a
and ACCESS have worked positive mindset even in the midst of failures. This can, she
hard to improve the industry’s profile. Kwan’s drive and passion says, be especially difficult for accountants who are particularly
has also seen her work with a host of other government and afraid of making mistakes.
private sector initiatives. These included working with the ‘You need to learn to focus on the effort and worry less
Monetary Authority of Singapore through ACCESS to come up about the results. Because, ultimately what you can control is
with a code of practice for crypto and blockchain companies, the effort, but not the result’, Kwan says. ‘One of the things
and, most recently, taking on the role of director of digital we can do to stay positive is to be encouraged by small wins,
services with accounting firm Crowe. while keeping the big picture in mind, which could be your
Kwan furthermore played an instrumental role in spurring the career objectives or your life goals.’ AB
recent revamp of Singapore’s GST policies regarding virtual
currencies. Through a series of talks, panel discussions, and Rufus Tan, journalist
advisory and engagement with the Inland Revenue Authority
of Singapore, she brought clarity and attention to the severe
implications of the previous regulations, while offering practical
i About Bitcoin Exchange
suggestions which were eventually adopted. Her combined
expertise in accounting, taxation and virtual currencies proved Bitcoin Exchange was founded in 2013 as the first public
to be indispensable, and offered a holistic perspective. This bitcoin machine provider in Asia. It offers a secure, fast and
change in tax policy cements Singapore’s standing as a pioneer affordable way to buy and sell cryptocurrencies through a
among the key financial hubs in establishing friendly and well- variety of means. These include crypto ATMs, bots, apps
defined GST regulations for the sblockchain ecosystem. and a decentralised peer-to-peer network. Bitcoin Exchange
Throughout Kwan’s career, developing a global perspective also engages in intermediary services for industry partners
has been crucial – with ACCA playing a central role. Kwan seeking reliable brick-and-mortar cash deposit and receipt
achieved the ACCA Qualification early on in her career facilities. Currently, it is planning for expansion in South-East
and believes that even though she already had a degree in Asia, fuelled by an exponentially growing demand for its
accounting, ACCA gave her an added global mindset to excel technological solutions.
in jobs servicing global conglomerates and handling global
September 2019 Accounting and Business 15
SG_INTER_ZannKwan_Bitcoin.indd 15 16/07/2019 17:03Listen and learn
Investing time and effort into a mentorship experience can ensure that both parties
gain new perspectives and get the most out of the relationship, says Chris Davis
While mentoring is recognised as an To have a successful mentorship
effective means of transferring the experience, it is important that
knowledge and experience of one both parties are proactive and invest
individual to guide another along their time in communicating with each
career path, it is hardly a new one. The other; the more that is put into the
origins of the word ‘mentor’ date back relationship, the more both parties
centuries to when it was mentioned in can expect to get out of it. This is
Homer’s The Odyssey, but today, with particularly pertinent for mentors
numerous studies pointing to the fact who stand to gain new perspectives
that millennials want workplace mentors from technology-savvy mentees who
and consider mentoring critical to their can offer a fresh viewpoint into the
success, the concept has become more challenges impacting business and the
significant than ever. accounting profession.
In its simplest form, the role For those with reservations about
can encourage the personal and the benefits, some of today’s most
professional development of a mentee successful business people credit
through the sharing of knowledge, many of their achievements to
expertise and experience. But mentoring. Facebook COO Sheryl
mentoring encompasses far more Sandberg frequently acknowledges
than the transfer of sagely advice. A Larry Summers, her former university
meaningful mentoring relationship professor who also served as chief
offers a large menu of intangibles economist at the World Bank and
ranging from providing an important US Treasury secretary, as being her
socialisation process for new employees ‘first and most important’ mentor.
and exposure to new ways of thinking Facebook CEO Mark Zuckerberg,
to developing resilience and offering who was mentored by the late Steve
a sounding board to simply talk about Jobs of Apple, attributes the pioneer
day-to-day challenges. of smartphone technologies with
Last year ACCA Hong Kong launched providing him with the knowhow to
a mentoring programme that allows build his team.
members to gain valuable new skills, As Oscar-winning filmmaker Steven
knowledge, insights and perspectives Spielberg once remarked, ‘The
directly from a fellow member. In the delicate balance of mentoring someone
digital era, mentoring is a powerful is not creating them in your own image,
It is important that
growth tool and one of the best ways but giving them the opportunity to
to pass on skills such as emotional
both parties are create themselves by listening to
intelligence, creativity and vision, proactive and them and giving them the support
according to Jane Cheng, head of ACCA invest time and guidance they need to reach their
Hong Kong. ‘These are human skills that in communicating highest potential.’ AB
machines cannot replace and mentoring
with each other
plays a pivotal role in exchanging these Chris Davis is a freelance journalist who
vital skills,’ she says. writes for business titles in Asia.
16 Accounting and Business September 2019
AP_COM_CD.indd 16 18/07/2019 14:32Critical assessment
An online review, whether for groceries or a hotel, can make or break a purchasing
decision. The business-to-business marketplace should take note, says Errol Oh
My wife and I recently discovered In a 2019 article, Konstruct Digital
the joys of shopping online. Without notes that the way that businesses search
leaving home, we can quickly compare for information and evaluate prospective
products, sellers, prices and deals. vendors and service providers is
Often, our decisions are influenced by changing. ‘Overall, we are continuing
fellow shoppers’ reviews and ratings. to see a shift where B2B buyers are
It’s the same when we use websites to behaving a lot more like B2C [business-
book holidays; the opinions of strangers to-consumer] customers, causing a large
somehow count for something. shift in how B2B sales and marketing is
This reliance on the experiences conducted,’ the agency explains.
and assessments of others isn’t new, A prime example is the business
of course. I have long been guided technology segment, where websites
by reviews and ‘best-of’ lists when like Capterra, TrustRadius, G2 and
choosing books to read and shows Software Advice serve as repositories
to watch. And who among us has for reviews that can help businesses
not received and dispensed word-of- select software, solutions and services.
mouth recommendations? In 2017, G2 teamed up with OnTarget
Technology has taken such things Consulting & Research and Heinz
to another level. Visitors to travel Marketing to get a sense of the impact
site TripAdvisor can browse through of reviews. They found that nine out
more than 760 million reviews of 10 buyers are more likely to buy a
of accommodation, restaurants, product after reading a positive review,
experiences and airlines. With a tap on while 67% prefer to see a mix of positive
a smartphone, you can bestow up to five and negative reviews. The report
stars on your Uber driver (or, in Malaysia’s concludes: ‘Reviews aren’t just dust in
case, your Grab driver), and they can do the wind – they possess tremendous
the same with their passengers. Similarly, value to you and your company to help
in the Airbnb community, star ratings are you continually improve and thrive in the
given out to hosts and guests. modern B2B landscape.’
So where do accountancy firms stand Some accountancy firms may regard
in a world where online feedback can this as not a strong enough reason to
be a major factor in how businesses allocate resources to deal with online
and their products and services are reviews and ratings. They may want to
perceived? Some may argue that think again. Job sites such as Glassdoor
Nine out of
because these firms operate largely in feature reviews by current and former
the business-to-business (B2B) sphere,
10 buyers are employees, and clients are likely to take
they don’t have to contend with the more likely to note of these assessments. Like it or not,
volume and reach of consumer reviews buy a product accountancy firms must respond well to
and ratings. However, there is some after reading mounting online scrutiny. AB
evidence that reviews do matter in
a positive review
the B2B marketplace, and perhaps Errol Oh is executive content officer of
increasingly so. The Star.
September 2019 Accounting and Business 17
AP_COM_EO.indd 17 18/07/2019 13:05Recovery position
How resilient is Asia to global shocks? Manu Bhaskaran considers how investment
spending in emerging economies along with sound policies could help the region
The world economy is slowing Third, foreign direct investment has
and its impact is being felt hard picked up substantially across the region
in developing Asian economies. except in India. Malaysia, the Philippines
With business confidence hurt by and Vietnam especially have seen
geopolitical concerns, a trade- growing foreign investor interest. Some
technology war between the US of this is due to accelerating production
and China and fragility in the latter’s relocation out of China.
economy, firms have cut back on Assuming that the US and China
investment and hiring. can avoid an escalation in their trade
The smaller trade-dependent war, the main vulnerability in Asia is
economies outside China and the external accounts in places such as
Japan face a hostile environment of India, Indonesia and the Philippines.
slowing demand for their exports and As investment spending speeds up
downward pressures on the prices in these countries, imports will tend
of commodities they sell, as well as to rise as much of the infrastructure
potential turbulence in their currency, spending involves imports of heavy
equity and bond markets which could duty equipment such as power
create financial stresses. Nevertheless, generation turbines and railway rolling
there are a number of reasons why we stock. However, financial markets tend
believe much of Asia can weather the to nervously watch current account
global difficulties. deficit trends in emerging economies,
First, with major central banks such taking fright if the ratio of the current
as the US Federal Reserve and the account deficit to GDP exceeds 3%
European Central Bank signalling – even if the rise is temporary and
that they will ease monetary policy, driven by investments that will improve
the monetary authorities in Asia now productive potential.
have the flexibility to cut interest The role of policy responses will be
rates more aggressively. India’s central critical in determining how resilient
bank has already started the process Asian economies will be in a more
and we see more rate cuts in countries turbulent global environment. Judicious
such as Indonesia, Malaysia and the use of monetary easing and stepped
Philippines. Other countries – such as up fiscal spending can help offset the
Singapore and Korea – are likely to downturn in export demand. Reforms
use fiscal measures to boost domestic aimed at removing obstacles to
The role of policy
demand as well. investors will also help raise long-term
Second, countries such as Indonesia,
responses will growth potential. So far, the portents
the Philippines and Thailand be critical in are good that sound policies will
have ambitious plans to ramp up determining how bolster Asian resilience in the coming
infrastructure construction. These resilient Asian few years. AB
projects are ‘shovel-ready’ and can be
economies will be
expedited so as to provide an earlier Manu Bhaskaran is CEO of Centennial
boost to their economies. Asia Advisors in Singapore.
18 Accounting and Business September 2019
AP_COM_MB.indd 18 18/07/2019 12:22Uniting to face the future
The finance function is in flux. To cope with future challenges, it needs to connect with
stakeholders like never before, says ACCA president Robert Stenhouse
If you were given a blank sheet of
paper, how would you design the
finance function of the future? Where
would you start and what challenges or
opportunities would you see ahead?
These are some of the questions asked
in the report by ACCA and PwC Finance:
a journey to the future? It summarises
the responses of members and PwC
contacts worldwide on a number of
hypotheses about the future of finance
(see the hypotheses on page 38).
The report found respondents to
be clearly separated into two groups:
those who think change will happen but
question its speed; and those who don’t
consider major change to be likely.
The report attributes these differing
views to geography and demography:
respondents in developed economies
appeared less open to change than
those in fast-changing economies.
The points made about trust
interested me a great deal. Trusted
data is increasingly seen as the core
of the organisation. If we are to secure
value from data, we need to be able to skillsets into non-financial data. ensure that it built internal and external
trust it. My experience of using audit There was a strong belief among the networks, and that it communicated
analytics is that there is often a lack of respondents that the CFO would remain proactively, and demonstrated its value
high-quality data. To secure data that central to the organisation, but that risk through building trust and sharing
will yield true insight requires consistent management and having a holistic view insights. I would also make sure ongoing
processes, effective internal controls is increasingly important. Many saw the learning support was part of the design.
and ongoing monitoring. These are core need to manage internal and external ACCA continues to explore this notion
competencies in finance professionals. stakeholders as increasingly significant. of connections and the profession as a
Compared to other disciplines, With financial skills spread across the super-connector, so look out for further
the finance profession already has organisation, the impact on the CFO resources on this (see the backpage
established competencies in data as the strategic financial adviser to the of this edition) as we help develop the
governance, which are underpinned by board also can’t be ignored. finance function of the future. AB
the concept of professional scepticism If I had a blank sheet of paper, I’d
and ethical standards. Finance include the recommendations in this Robert Stenhouse is ACCA president
professionals therefore have a huge report. I’d ensure the finance function’s and a director, national accounting and
opportunity to apply and extend their design is truly connected. I would audit, at Deloitte in the UK.
September 2019 Accounting and Business 19
AP_COM_Pres.indd 19 16/07/2019 11:03Is it time to
regain control?
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AP_AFR_IE_Ads.indd 2 2 06/06/2019 15:35
15/07/2019 16:43The view from
Terence Kyaw Thuya ACCA, senior manager – reporting,
Yoma Bank, Myanmar, on the power of networking 70%
of the general public across 11
Humans are not islands and regularly communicate with countries believe that
a professional network is key stakeholders internally audit should
vital. If I weren’t surrounded and externally, both evolve to prevent
by true professionals, regulatory authorities and corporate failure.
mentors, friends and management professionals. Source: Audit and
colleagues, I would not This role gives me an technology, ACCA/CA ANZ
be standing here today. overall financial view of the
The business world has bank – of oversight assets,
enlightened me and shown me what a investments and return on investment Auditor quits
career can be. It has made me a better, – and I’m also involved in analysis and EY has resigned as auditor of a
more determined and ambitious person. advising key people. Chinese commercial bank, the Bank
I’ve met a lot of people along the way of Jinzhou Co, a year after being
and everyone has their own philosophy; Myanmar is my home and it has hired to review its accounts for the
I’ve learned to listen and respect theirs. huge growth potential. It has a lot latest financial year. According to a
of resources, like human capital, and statement on the Hong Kong-listed
Technology has 100% affected my natural and geographical advantages. bank’s website, and reported by
career. Twelve years ago I started as an With the right policies and leadership, Bloomberg, EY’s resignation letter
accounts assistant at a small accounting we can get back to the top in South- cited indications that some loans to
firm, using manual data entry, manual East Asia. The government is trying its institutional customers weren’t used
vouching and tons of document filing best to stabilise the economic climate. in ways consistent with the purposes
and archiving. Nowadays, all these are stated in documents. The bank said it
in the cloud. My office has more empty Social change is happening every day, had been working with EY to provide
space than my living room. everywhere. The previous generation’s the information, but the two sides had
young workforce went abroad to pursue been unable to reach a consensus on
I recently left a finance manager a career and education. Many are now how to resolve the concerns.
position at Emirates airline and joined coming back; they’ve brought back not
a local bank in Myanmar as a senior only money, experience and vision but More cloud cover
manager. This role is pretty exciting as I also their social behaviour. New service PwC has announced a partnership
industries have emerged to cater to with Xero that will allow its firms
these new needs and behaviour. around the world to provide clients
with access to the accounting
During my career, I’ve gone from a platform. Building on established
junior accountant to a senior manager. relationships in the UK, Canada,
With the
Along the way I have added big-profile Australia and New Zealand, the
right policies companies to my CV, like Telenor, collaboration aims to boost cloud
and leadership, Emirates and Yoma, which makes me adoption in markets such as Asia,
Myanmar can proud every time I think about it. Europe and the US. PwC says it will
get back to the work with Xero to continue to innovate
If I wasn’t an accountant, I’d be an together, resulting in the development
top in South-
architect. Every time I travel I love to of more efficient products and services
East Asia observe architectural wonders and for small businesses.
ancient architectural philosophy. AB
September 2019 Accounting and Business 21
AP_YCORP_intro.indd 21 16/07/2019 16:28The human touch
Asia is embracing the digital revolution, with improved accessibility to education
playing a key role, says artificial intelligence expert Dr Ayesha Khanna
Named by Forbes magazine as one Q At the 2018 World Congress of that include transaction processing,
of South-East Asia’s ground-breaking Accountants in Sydney you mentioned reporting and analytics can increasingly
female entrepreneurs, Dr Ayesha that 94% of accountants were likely be done by artificial intelligence.
Khanna, CEO and co-founder of ADDO to lose their traditional jobs to AI. Is If the work is strategic or complex,
AI, is one of today’s most sought the accounting profession in danger of then it does and will continue to
after speakers and commentators in disappearing overnight? require humans, and that is where the
the fields of artificial intelligence (AI) A No. However, the tasks and roles in opportunity lies for forward-thinking
and digital. Here, she talks about how the profession will change. I believe accountancy firms to leverage on
businesses in Asia are adapting to the every industry is at a turning point machine learning and give employees
challenges of the digital economy and with great automation and machine the ability to reach their true potential.
why education is key to understanding intelligence, and the accounting
the new era. profession is no different. Routine jobs Q To leverage on the opportunities,
accountants will need to get better
acquainted with AI. Can you share
some practical tips?
A The best way for any person to get
acquainted with AI is, first, to become
regular readers of magazines such
as TechCrunch and MIT Technology
Review, which provide insight into
how companies are solving business
problems using AI; and, second, take
courses on online platforms such as
Coursera and Udemy. The idea is not
for accountants to become coders or
data scientists but to learn enough to
collaborate with AI engineers and at
the same time question and probe
the biases of the solutions that AI
generates.
Q Humans are still needed to drive
AI technology and ensure its proper
usage. Is it possible that one day AI will
become smart enough to make these
judgment calls?
A We are in the age of narrow AI, which
means that it is very good at mimicking
many routine tasks and mining large
amounts of information to find solutions
to very specific problems. It is nowhere
near the stage where it can make
22 Accounting and Business September 2019
AP_YCORP_AyeshaKhanna.indd 22 11/07/2019 14:26strategic decisions, to have empathy of Asia. This is excellent, given how Q You mentioned in a recent Economist
with humans, and to connect the dots the poor have historically been unjustly Intelligence Unit podcast that one of
between the philosophical, business, deprived of good education. But there the drivers of innovation in Asia is the
legal and political aspects of a problem. is still value in physically studying real-world problems of developing
However, one should not discount our together – learning how to approach countries. What are some of these new
ability to create smarter AI machines a problem from a great teacher’s innovations that are surfacing?
over time. Even though we may be far perspective, pursuing one’s curiosity A Perhaps one of the most interesting
from this point today, we should debate, in interdisciplinary teams and learning innovations that we have seen in Asia
discuss and ponder over how it will the emotional IQ necessary to be has been the rise of the super app,
affect society, so that we continue to successful. So I don’t think that physical WeChat, in China. In one app, users can
reap its benefits and reduce its risks. universities will become obsolete, but chat with each other, watch videos and
their function will be far less about news, order food and do bike-sharing.
Q You’ve cited education as a key imparting information and far more Now the battle is on for super apps in
way to address concerns and fears about collaborative problem-solving, the rest of the region, notably in ASEAN
about AI. What do you think about the debate and collaboration. and South Asia.
current state of education? One of the key functions in these areas
A The education system across the is the ability to use alternative data to
entire world is currently broken and understand the credit worthiness of
dismally underprepared for the individuals so that they can be given a
21st century. We are making several ‘The education loan for a house mortgage, a fridge or a
mistakes: we are still treating disciplines child’s education. The more data an app
system across the
like science, engineering and humanities has on a person, the more it can use that
as isolated even though the products of
entire world is person’s micro-behaviours to generate
the future will require a multidisciplinary currently broken a credit score. However, it is imperative
approach; we are making exam grades and dismally that these apps must be governed as
the end goal of schooling even though underprepared for it can be dangerous for one company
students would be better evaluated to have access to data about so many
the 21st century’
on project work; and we are not facets of an individual’s life.
teaching the fundamental concepts of
computational literacy even though this Q Is Asia leading or lagging behind in
is as important as reading and writing. Q How is Asia being impacted by terms of its regulatory framework for
However, the good news is that the digital economy and how are the digital economy?
many countries, including Singapore businesses in the region adapting? A Given how many millions of people
and Estonia, have begun to pivot their A Asia is enthusiastically coming onto are going to be affected by AI in
education system to a greater focus the digital age largely due to mass Asia, I believe we’ll see leadership in
on computational literacy for children, and rapid urbanisation, increase in regulation in the region. Singapore, of
project-based work and internships for telecommunications infrastructure course, has already started this trend.
college students and lifelong learning and, of course, the proliferation of the It just won the World Summit on the
for adults. mobile phone, which acts as the nexus Information Society Prize for at its
of the economy’s digital transformation. work in AI governance and ethics. The
Q One of the drivers for talent Businesses are moving on to the cloud government has developed a framework
growth in Asia has been the rise of and looking at how they can use data to guide organisations on how to govern
self-taught digital-domain workers who and machine learning to meet the large and implement AI in a human-centred
learn from online learning platforms. consumer demand that is growing in manner while encouraging innovation in
Do you think physical learning will Asia as the populace moves up to the the economy. I am sure we’ll see more
become obsolete? middle class. According to the Financial regulation and governance in this area
A The rise of online learning platforms Times, five people join the global from other parts of Asia soon. AB
has democratised access to education middle class every second and most of
for much of the emerging middle class these are in Asia. Rufus Tan, journalist
September 2019 Accounting and Business 23
AP_YCORP_AyeshaKhanna.indd 23 18/07/2019 15:38You can also read
