Updated CIMA 2019 Professional Qualification Syllabus to stay ahead
View(s):In order to meet the demand of a constantly changing workforce with digitalisation, big data analysis and robotic technologies, local accountants must embrace them and apply them in their respective organisations to stay relevant, a top official of a global accounting professional qualification body said.
Dr Noel Tagoe, Executive Vice President- Research & Curricula Management of the Charted Institute of Management Accountants (CIMA)
Dr Noel Tagoe, Executive Vice President- Research & Curricula Management of the Chartered Institute of Management Accountants (CIMA), was in Colombo this week to brief the local accountant workforce on the recently updated CIMA 2019 Professional Qualification Syllabus, on how the global accountancy industry is changing rapidly with new challenges and demands.
Dr Tagoe believes that the updated CIMA syllabus is a timely decision taken in order to strengthen global body’s commitment to employability needs of both businesses and people. Focused as a bridging of digital skills needed for modern day management accountant professionals, the new syllabus was revised after in-depth study of the changing industry and other relevant stakeholders.
The updated syllabus includes how the digital world affects finance and sets out to meet the increasing demands of the rapidly changing industry, (which has become more digital savvy) and robotic technology in the workforce. New topics such as cyber security and business models have been included in the new CIMA curricula.
Dr Tagoe, who strongly recommends a CIMA professional qualification which meets the industry’s latest needs, sat down with Education Times on the changes made to the updated syllabus. Following are excerpts from the interview. This interview is edited for clarity.
Q: Since you are here over the newly updated CIMA syllabus, how does it stand out from the previous ones, and what is the need to make those changes in the first place?
First, the previous one was prepared five years ago. Since then, things have changed in the world and we have to change accordingly. For example, at the moment there is lot of change in technology. So we are hearing about data analysis, data visualization, cyber security etc. So accountants have to be aware of this and know how to deal with all of these things. If we are unable to do that, then others will take over. Then we hear about the disruptions such as new business models taking shape like Uber, which did not exist 5 years ago, but later impacted many business models. So people have to be able to understand business models and how to use them to gain competitive advantages. We are also focused on what the industry and companies need from our accountants, and we give them training so they will be able to deliver what is expected from them.
Q: How do you see the current accountancy profession at global level and why a revised CIMA qualification is a must to meet those future challenges?
I think industry is changing constantly as new technology evolves. Things that human beings used to do are replaced by robots. The question that arises is what work human beings would do in the future, if machines are taking over. So what we are looking at is how we can face this challenge by preventing further human displacement from the workforce and ensure people are employed adequately, along with robots. To give an example, when spreadsheets were introduced in the US, it took away 400,000 bookkeeping jobs but, at the same time, it created 600,000 new jobs. When things change in industry, human beings will have to find new skills in order to co-exist with machines that took away jobs previously held by humans. If they manage to do that, they will still be in the job. If they can’t do that, they will be out of a job and replaced by machines.
Q: When it comes to Sri Lanka’s accountancy industry, how do you evaluate the human potential and resources compared with global standards?
The good thing about Sri Lanka is that, it is one of those developing countries which it has a good educational system with a high literacy rate. People in Sri Lanka are generally huge human capital and they have to make sure they stay up to date. Otherwise they will run into problems, because things are changing across the world. The changes in the global economy in other countries affect us too. There are many multinational companies based here. If the local workforce cannot provide adequate services as expected from them, then they will bring in expatriates to meet the demand and eventually, move to another country.
At Unilever Sri Lanka, they are using co-bots (Co-Robots), where robots are collaborating with human beings in manufacturing. Even if you contact any call centers in Sri Lanka, the first interactions would be with a chatter box- a robot that will ask you the first questions and on to human beings when difficult questions are posed. Sri Lanka, which is already well placed in this scenario, has to prepare itself for it. Its young population, which is highly educated, understands digital and mobile technology.
Q: What are the key changes included in the revised CIMA syllabus 2019? Can you explain how these changes are incorporated into various stages of the professional qualification?
To give an overall overview of CIMA qualifications, at the first stage of Operational level, people will have to get a better understanding of the data. We have lot of data sitting in various organisations, and they don’t know how to use it. So we are introducing them to big data, how to analyze and present big data, and new technologies such as cloud computing, block chain, digital costing and so on.
At the second level, we have introduced integrated reporting, which is essential in the modern accountancy field. Because satisfying shareholders alone won’t be adequate for the industry, but other relevant stakeholders are also a must. If they are not happy with you, you are in trouble. In addition to this, we have also included business models to get a better understanding of evolving business models.
In the final level, study is focused on business strategies and risk management. In addition to this, we have included Digital Strategies which focus on necessary digital skills needed to move from manual mode to digital, as many companies have been switching lately. It also details the risks we face in the digital world, such as cyber threats, cyber security and reporting financial strategic risks. At the moment we know that 80% of businesses are in what we call intangible work, not tangible physical work. We have put more emphasis on this kind of intangible business model.
Q: For those who have already obtained their CIMA professional qualifications, how can they bridge these new skills in the new revised syllabus?
Those who have obtained their qualifications previously, don’t have to go through the examination process again. We have put forward a package for them. Every CIMA member will get a monthly package to bridge the knowledge gap. We already started that process about two weeks ago. More than 10,000 people downloaded the package. The feedbacks we are getting from those who referred to the new material are very positive. Many people find it very helpful and it has deepened their understandings of some financial issues.
Q: What would be your messagebe be to a young professional who wanted to secure CIMA qualification?
As I pointed out earlier, Sri Lanka has huge potential of human resources. CIMA is an interesting intellectual stimulated study. It will increase your earning power. Above all, CIMA enables to contribute something to the organisation someone works for and society as a whole. If you are an entrepreneur, it would be a huge additional advantage. I would say to them it is interesting and exciting and this is the time to go for this kind of worthwhile qualification. - S. Rubatheesan