In October 2003, there has been a declaration by the ASEAN Charter that the 10 economies of ASEAN are expected to be integrated into one economy as ASEAN Economic Community, or AEC, by the year 2015. Still, the region is facing several challenges for the integration. First, there are concerns that the current crisis might slowdown the regional integration process. However, regional integration should continue in order to provide protection from the global crisis through intra- regional trade. This can help improve regional’s competitive strength through open trade, FDI regimes, FTAs, and facilitative environment such as regulatory standards, fi nancing systems, logistics, and business procedure. Second, the increasing cross border fi nancial transactions has raised the importance of ASEAN capital market integration. The ASEAN hopes to learn from the European Monetary Union’s experience in many subjects, such as capital fl ows, cross border mechanism and standardized accounting, to create an environment for integration. Third, there is a need for sustaining regional growth dynamics and monitoring the integration process to keep it on schedule. Financial reporting system takes parts in the challenges of the ASEAN integration. Accounting harmonization is one of the vital facilitators for cross-border fl ows of goods, services and capita