Abstract
This paper measures and compares the level and progress of accounting bodies readiness in
ASEAN toward ASEAN Economic Community (AEC). The level and progress of readiness
are measured by ratio between accountant and listed companies and compliance of statement
of membership obligations (SMO) as required by International Federation of Accountants
(IFAC). Every SMO’s compliance of ASEAN countries is graded using range 1-10 (1 = not
comply and 10 = fully comply). The final grading will provide a rank of accounting bodies in
ASEAN country readiness, especially Indonesia Institute of Accountants (IAI). The rank will
give assessment level and progress toward AEC especially to Indonesia. ASEAN are Brunei
Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore,
Thailand, and Viet Nam. One of the co-operations is signed ASEAN Economic Community
(AEC). The AEC will be implemented in 2015 where ASEAN will have free movement of
goods, services, investment, skilled labor, and free flow of capital. Indonesia needs to prepare
for AEC. This paper aims to know the position of Indonesian Institute of Accountants (IAI)
among others accounting professional body in ASEAN toward AEC. We examine literature
reviews on the organizations that has impact on accounting profession which are ASEAN
Federation of Accountants (AFA) and International Federation of Accountants (IFAC). Those
above mentioned organizations influence the Mutual Recognition Agreement (MRA) set for
AEC. IAI is member of IFAC and AFA, so IAI has to comply with statement of membership
obligation (SMO) by IFAC. In 2013, IAI is number 5 as compared to other ASEAN countries
in compliance to SMO. Indonesia needs to work harder related to number accountant because it
is still sort of accountants. It is ranked as number 5 again comparing to other ASEAN countries
for the total number of accountants and decline to rank as number 8 to other ASEAN countries
for the ratio between accountant and listed companies. IAI is in the right path for being ready
to AEC while IAI needs to keep up raising the number of accountants and improving on quality
assurance, socialize on international education standards, doing collaboration with Institute
Akuntan Public Indonesia (IAPI), enhancing code of ethics and continuing convergence with
International Financial Reporting Standards (IFRS).