Author

Chris Davis, journalist

At a time when the concept of multilateralism is being challenged, the renewal of a longstanding mutual recognition agreement (MRA) between the Hong Kong Institute of Certified Public Accountants (HKICPA) and ACCA Hong Kong underpins what ‘Stronger Together’ means, explains HKICPA president, Edward Au FCCA.

Effective from 1 July 2025, the new MRA supplants the previous one, which was renewed in 2020. ‘We have a long history of working together,’ says Au, adding that the renewal of the MRA marks a new era of recognition, collaboration and expanded opportunities.

‘It is important accountants have the support and empowerment they need’

Value for members

Au highlights the benefits respective members gain, including world-class professional qualification programmes and CPD opportunities that both organisations offer, in addition to fee waivers for admission.

‘Enhancing access to professional development and upskilling opportunities are important areas that provide value to members,’ Au says.

By developing applicable skill sets, accountants are less likely to feel threatened by the exponential use of artificial intelligence (AI) across the accounting profession and instead be in a stronger position to utilise the potential AI offers. ‘It is important accountants have the support and empowerment they need so they are able to continuously evolve and transform themselves’ Au says.

Interconnected community

Strategically, Au says collaboration between HKICPA and ACCA Hong Kong helps to support an interconnected professional community which in turn contributes to the further development of the accounting profession in Hong Kong. Au also points out the benefits members gain from HKICPA’s recognition agreements with 11 overseas accountancy bodies, including some Global Accounting Alliance bodies, which mutually recognises the professional examinations and practical experience of members.

In addition, members benefit through the institute’s association with accountancy bodies in mainland China, which under certain circumstances may include exemptions from professional qualification exams. Through these strategic alliances, Au explains, members are able to enhance their professional credentials and unlock new pathways to grow their careers. Au also acknowledges how dual membership enables HKICPA members to access ACCA’s extensive global professional network.

‘We aim to better articulate the position and value of the accounting profession’

Changing landscape

As an advocator for the betterment of Hong Kong’s accounting profession, Au says initiatives including the MRA with ACCA Hong Kong align with the institute’s Strategic Plan 2025, which focuses on the themes of ‘Building Trust’, ‘Nurturing Talent’ and ‘Driving Development and Transformation’. Au says the Strategic Plan reflects the changing needs of the accounting profession and the evolving business environment.

‘We aim to better articulate the position and value of the accounting profession to our members and the public,’ Au says. The institute has embarked on a significant amount of work to build awareness; in terms of training and development, in 2024 it organised more than 60 digital journey workshops and seminars focusing on how technology can enable efficiency, risk management and resources management.

Seminars have also focused on a range of key topics such as fintech and AI. Environmental, social and governance (ESG) and sustainability are also key areas where Au believes recognition for the accounting profession could be elevated. The next step, he continues, is to highlight how accountants can convert ESG and sustainability into value.

To realise HKICPA’s role as Hong Kong’s statutory sustainability standard setter, the institute published the HKFRS Sustainability Disclosure Standards, which will be effective from August 2025.

Talent initiatives

Au acknowledges that attracting the next generation of accounting professionals is beset with challenges. In a 2023 survey of HKICPA members, which included both Professional Accountants in Practice (PAIPs) and Professional Accountants in Business (PAIBs) members, 61% of respondents ranked the impact of talent shortages at seven or above (where one represents no impact and 10 indicates severe adverse effects), with 25% indicating a rating of nine or above. Approximately one-third (32%) of respondents stated that their organisations currently have a vacancy rate of over 10% for accounting and finance-related positions. Among PAIPs, 10% of them have a vacancy rate of over 50%.

Au says that HKICPA welcomes the Hong Kong government’s efforts to address the shortfall of accountants through implementing measures to increase talent supplies. One example is HKICPA’s recommendation to include the accounting profession in the Talent List, which allows skilled foreign professionals to benefit from fast-track immigration under key visa schemes.

Accounting ambassadors highlight how CPAs specialise in a wide range of fields

The next generation

While the fast-track initiatives will help speed up the process of filling vacancies and add diversity to Hong Kong’s talent pool, the institute has also launched initiatives that are more long term in their approach.

By taking the ‘accounting story’ into tertiary institutions, secondary and even primary schools, Au says the goal is to dispel myths that the accounting profession is uninteresting. Accounting ambassadors highlight how CPAs specialise in a wide range of fields beyond accounting, how they help to protect the environment, and the opportunities that are being created through the digital economy.

The institute has hosted more than 1,100 financial seminars for more than 190,000 primary and secondary schools. HKICPA partnered with the Hong Kong Institute of Vocational Education to co-design the Financial Education Teaching Manual in 2024, which enables primary teachers to generate five hours of teaching in financial education.

The goal, Au says, is to illustrate how accounting is the language of business, and CPA qualifications provide a global passport, enabling the holder to work practically anywhere in the world.

More information

Visit ACCA’s FAQs page for more on the mutual recognition agreement with HKICPA.

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