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Association of Chartered Certified Accountants

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Association of Chartered Certified Accountants
AbbreviationACCA
FormationNovember 13, 1904; 120 years ago (1904-11-13)
HeadquartersLondon,  UK
Region served
170 countries
Websitewww.accaglobal.com
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Founded in 1904, the Association of Chartered Certified Accountants (ACCA) is the global body for professional accountants offering the Chartered Certified Accountant qualification (Designatory letters ACCA or FCCA). It is one of the largest and fastest-growing global accountancy bodies with 147,000 members and 424,000 students in 170 countries (as at April 2011). The Institute's headquarters are in London with the principal administrative office being based in Glasgow. ACCA work through a network of 83 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development.

The term 'Chartered' in ACCA qualification refers to the Royal Charter granted in 1974 by Her Majesty the Queen in the United Kingdom.

Since Chartered Certified Accountant is a legally protected term, individuals who describe themselves as Chartered Certified Accountants must be members of ACCA and, if they carry out public practice engagements, must comply with additional regulations such as holding a practising certificate, being insured against any possible liability claims and submitting to inspections.

The Association of Authorised Public Accountants (AAPA), one of the British professional bodies for public accountants, has been a subsidiary of ACCA since 1996.

ACCA works in the public interest, assuring that its members are appropriately regulated for the work they carry out and, promoting principles-based approaches to regulation. ACCA as an organisation actively seek to enhance the public value of accounting in society through international research, taking a progressive stance on global issues to ensure accountancy as a profession continues to grow in both reputation and influence.

History

ACCA can trace its history back to 1904 when eight people formed the London Association of Accountants. This was done in order to allow more open access to the profession than was available through the existing accounting bodies at the time, notably the Institute of Chartered Accountants in England and Wales and the Institute of Chartered Accountants of Scotland. As of 2006, the goal of ACCA is to become the world’s leading global professional body by size.

A timeline of key dates in the history of ACCA and its predecessor bodies is:

  • 1930 : London Association of Accountants successfully campaigns for the right to audit companies
  • 1933 : London Association of Accountants renamed London Association of Certified Accountants
  • 1939 : Corporation of Accountants (Scottish body, founded 1891) merges with London Association of Certified Accountants to become the Association of Certified and Corporate Accountants
  • 1941 : Institution of Certified Public Accountants (founded 1903, and incorporating the Central Association of Accountants from 1933) merges with Association of Certified and Corporate Accountants
  • 1971 : Association of Certified and Corporate Accountants renamed Association of Certified Accountants
  • 1974 : Royal Charter received from Her Majesty the Queen.
  • 1974 : ACCA becomes one of the six founding members of the Consultative Committee of Accountancy Bodies (CCAB).
  • 1977 : ACCA becomes a founding member of the International Federation of Accountants (IFAC).
  • 1984 : Association of Certified Accountants renamed Chartered Association of Certified Accountants
  • 1995 : ACCA members vote at an extraordinary general meeting to amend the name of the body to the Association of Chartered Public Accountants and to introduce the designation Chartered Public Accountant. The Privy Council subsequently rejected this proposal as it was concerned about the inclusion of the term public. It did however agree that any accountancy body that had a royal charter could be granted the right to use chartered as part of the members’ designation.
  • 1996 : Chartered Association of Certified Accountants renamed Association of Chartered Certified Accountants. Members become entitled to use the title Chartered Certified Accountant (Designatory letters ACCA or FCCA). The Association of Authorised Public Accountants becomes a subsidiary of ACCA.
  • 1998 : ACCA's syllabus formed the basis of the United Nations' global accountancy curriculum titled Guideline on National Requirements for the Qualification of Professional Accountants published in 1999. ACCA was a participant in the consultative group, which devised this global Benchmark, and reference to ACCA's role is included throughout the publication.
  • 2001 : ACCA received a Queens Award for Enterprise in International Trade, recognising the growth of ACCA and its role in160 countries worldwide.
  • 2002 : ACCA received its second Queens Award for Enterprise in the space of 12 months, honouring its continuing work on social and environmental issues with the confirmation of the Queens Award for Enterprise in the Sustainable Development category. ACCA's first Queens Award, for Export Achievement, was presented in 1996.
  • 2009 : ACCA members allowed to provide and to charge for probate services with effect from 1 August 2009 under The Probate Services (Approved Bodies) Order 2009 Number 1588.

Qualifications

The ACCA offers the following qualifications:

Chartered Certified Accountant (ACCA) - Professional Scheme

The Professional Scheme is the primary qualification of the ACCA and, following completion of up to 14 professional examinations and three years of supervised, relevant accountancy experience, enables an individual to become a Chartered Certified Accountant.

  • In accordance with ACCA's traditions, there is open access to its examinations.
  • As part of the Professional Scheme, a Bachelor of Science (Honours) degree in Applied Accounting (after completing Part 2 of the Professional Scheme and submitting a Research project), is offered in association with Oxford Brookes University.
  • The current syllabus is made up of 14 examinations, although some exemptions are available. The papers are split into two parts, the fundamental level (9 examinations consisting of F1 Accountant in Business, F2 Management Accounting, F3 Financial Accounting,F4 Corporate and Business Law, F5 Performance Management, F6 Taxation, F7 Financial Reporting, F8 Audit and Assurance, and F9 Financial Management) and the Professional level (5 examinations). Within the professional level there are three compulsory papers (P1 Governance, Risk & Ethics, P2 Corporate Reporting, P3 Business Analysis) and four optional papers (P4 Advanced Financial Management, P5 Advanced Performance Management, P6 Advanced Taxation and P7 Advanced Audit and Assurance , of which two must be selected).
  • Subjects examined include financial accounting, management accounting, financial reporting, taxation, company law, audit and assurance and financial management.

It is ACCA policy to update the examination syllabus on a regular basis. Changes were most recently made in 1994, 2001 and 2007. The revised syllabus updated the qualification for recent developments in the accountancy profession and reorganised the papers within the examination.

The ACCA professional examinations are offered worldwide twice yearly, in June and December.

Certified Accounting Technician (CAT)

This is an introductory qualification for accounting technicians. Although CAT can be obtained as a standalone qualification, it is often the case that individuals study for CAT as an introduction to accountancy prior to starting the Professional Scheme. It usually takes 2 years to complete the Certified Accounting Technician exams. However, there is no restriction on the number of papers that can be attempted in one attempt.

Alternatives to the CAT qualification include the Association of Accounting Technicians qualification. ACCA was a sponsor of the AAT before breaking its links in favour of the CAT qualification in the mid 1990s.

Currently, the Certified Accounting Technician qualification (CAT) has been placed on the National Qualifications Framework of the Qualifications and Curriculum Development Agency (QCA), and publicly-funded educational institutions are now eligible for funding to train towards the qualification in United Kingdom.

Other qualifications

The ACCA offers other qualifications:

  • MBA (for ACCA full members, offered in association with Oxford Brookes University)
  • BSc(Hons) in Applied Accounting, offered in association with Oxford Brookes University
  • MSc in Financial Management, offered in association with Heriot Watt University
  • Diploma in Financial Management (DipFM). Introduced in the mid-1980s as the Certified Diploma in Accounting and Finance (CDipAF), a financial qualification designed for non-finance managers.
  • Diploma in International Financial Reporting (DipIFR)
  • Diploma in Financial Management
  • Certificate in International Auditing (CertIA)
  • Certificate in International Financial Reporting (CertIFR)

Membership

ACCA Affiliate versus Members

In the first instance, individuals register as student members to undertake the Professional Scheme qualification.

Upon successful completion of the examinations, student members are automatically transferred to Affiliate status.

"For ACCA affiliates to gain admission to full membership, they must demonstrate, on the application form, that they have obtained a minimum of three years of acceptable, supervised, practical experience in an accountancy role (or roles) and have reached the required standard of competence".[3]

Fellowship

Fellowship, or senior membership of ACCA, or being Chartered Certified Accountants above 3 years or 5 years (according to the new rules), is awarded on the following bases:

  • after 3 years continuous membership, upon application, with documented Continuing Professional Education; or
  • for members admitted to Associateship before 2002, automatically after five years continuous membership.

ACCA has decided that from 1 January 2008, Fellowship will be awarded based on 5 years continuous membership, with compliance with Continuing Professional Education requirements. Advancement to Fellowship will be automatic provided the member has not breached CPE requirements. Members admitted before 2005 may still apply for Fellowship under the 3 year rule before 1 January 2008.

Fellow members of ACCA use the designatory letters FCCA in place of ACCA.

Continual Professional Development

Before 2005, Continual Professional Development (CPD) was mandatory only for holders of practising certificates and insolvency licences. From 2005, ACCA is extending mandatory CPD to all members on a phased basis:

  • Phase 1: Effective 1 January 2005, for members admitted to Associateship on or after 1 January 2001 (plus all practising certificate and insolvency licence holders)
  • Phase 2: Effective 1 January 2006, for members admitted to Associateship 1 January 1995 and 31 December 2000
  • Phase 3: Effective 1 January 2007, for members admitted to Associateship on or before 31 December 1994.

It is permissible for a member to adopt CPD earlier than the deadline.

Europe

United Kingdom and Republic of Ireland

  • The ACCA or Chartered Certified Accountant qualification is fully recognised in the United Kingdom and Republic of Ireland.
    • Under the Royal Charter granted by Her Majesty the Queen, ACCA works in the public interest.
    • ACCA is a Designated Professional Body under the Financial Services and Markets Act, business activities.
    • ACCA is a Recognised Professional Body under the Insolvency Act to issue permits to individual Chartered Certified Accountants to conduct insolvency appointments.
    • ACCA is also a Recognised Qualifying Body and Recognised Supervisory Body in relation to company auditing under the Companies Act 1989.
    • ACCA is a member of the Consultative Committee of Accountancy Bodies (CCAB). Members of these bodies are deemed to hold equivalent-level qualifications and advertisements for jobs often state that an organisation is looking for a CCAB-qualified individual.
    • Full members of CCAB organisations including ACCA can apply for ICAEW membership subject to certain criteria. Details
    • Only ACCA, ICAEW, ICAI, ICAS and AIA are able to authorise members to conduct audit, insolvency and investment business work in the United Kingdom and Republic of Ireland.
  • Outside these countries, legal recognition by government authorities, and mutual recognition by equivalent overseas institutes, varies from country to country. Even where full legal or mutual recognition is not available, ACCA members can sometimes obtain advanced standing in terms of sitting local accountancy examinations. Additionally, in many instances, ACCA's strong global reputation may obviate the need to acquire a local designation.
  • Similarly, many (although not all) universities and educational providers will recognise ACCA as equivalent to at least a Bachelor degree in accountancy, for the purpose of obtaining credit to acquire a local Masters degree or enter an advanced study program.

The Irish educational regulatory authorities - Higher Education and Training Awards Council (HETAC) has assigned ACCA Qualification to Level 9 of the Irish National Qualifications Framework (NQF) in 2008. Level 9 holds Irish postgraduate qualifications, such as postgraduate diplomas and masters degrees.

European Union (EU), European Economic Area (EEA) & Switzerland

CIMA is proactive to tie up with American CPA since European companies will be forced to use US GAAP and accounting rules following the merger of the iconic New York Stock Exchange with Germany’s Deutsche Boerse AG. US GAAP or accounting rules is more superior in public disclosures according to Mayor Michael Bloomberg.

http://uk.reuters.com/article/2011/02/11/business-us-exchanges-bloomberg-idUKTRE71A5O020110211?rpc=401&feedType=RSS&feedName=americasDealsNews&rpc=401

Turkey

  • ACCA and TÜRMOB (The Union of Chambers of Certified Public Accountants of Turkey) at Turkey signed a partnership agreement in 2004 which enables TÜRMOB members resident in Turkey to follow the ACCA Professional Scheme qualification and achieve ACCA membership.

Others

  • The ACCA currently is recognized by the national accounting institutes with the joint scheme relationships in:
    • Armenia (Association of Accountants and Auditors in Armenia);
    • Georgia (Georgian Federation of Professional Accountants and Auditors).

As of end of 2006, there are 64,574 members and 91,379 students/affiliates in Western Europe, UK and Ireland, as well as 3,279 members and 17,273 students/affiliates in Central/Eastern Europe respectively.

North America

United States

  • A mutual recognition between ACCA and AICPA/NASBA does not exist, but is under negotiation as of December 2006. However, it has effectively been put on hold pending a decision by the UK regulatory body, the Professional Oversight Board of Accountancy (POBA). It should also be noted that even if ACCA gained statutory recognition, it would still be up to the individual states to grant reciprocity within their state. [4]
  • Effective December 2009, Colorado State Board of Accountancy no longer accepts Chartered Accountants (ref?), including ACCA members, as meeting the educational requirements to sit for the US Uniform Certified Public Accountant Examination.
  • There are currently around 2,900 members and students in the US.
  • In AICPA International FAQs section, the designation from the ACCA is not generally recognized by the states in the U.S., so ACCA members are required to complete all of the regular requirements to become a U.S. Certified Public Accountant (CPA). Information on becoming a CPA in the U.S.

http://www.aicpa.org/BECOMEACPA/LICENSURE/INTERNATIONALTOPICSFAQS/Pages/International%20Topics%20Frequently%20Asked%20Questions.aspx#3

  • Moreover, only full member of any one of Global Accounting Alliance (GAA) is eligible to join AICPA International Associate. CIMA member will be eligible to join AICPA International Associate Member once the new strategic alliance is approved by the respective governing councils.

http://www.aicpa.org/INTERESTAREAS/INTERNATIONAL/MEMBERSHIP/Pages/default.aspx

http://www.globalaccountingalliance.com/Alliancebodies1.html

Canada

  • Since Canadian Institute of Chartered Accountants (CICA) and Certified Management Accountants in Canada (CMA Canada) has just announced to create a new joint qualification “Chartered Professional Accountant or CPA Designation”, whether the effect of this new Chartered designation will impinge on ACCA's application for recognition in Ontario is still uncertain at the moment.

As of 2006, ACCA has 1,100 members and over 400 students residing in Canada, the largest concentration of which live in Ontario.

Oceania

Australia

  • ACCA has one office in Sydney, and holds its exams in major cities in Australia, including Sydney, Melbourne, Perth, Adelaide and Brisbane.
  • The Tax Practitioners Board has accredited ACCA as a recognised tax agent association and as a recognised BAS agent association on 12 May 2010.
  • Subject to passing exams in Australian tax and law, ACCA members may obtain the professional National Accountant (PNA) designation from the National Institute of Accountants, On the same basis, ACCA members can obtain direct entry to the CA Program of the ICAA.

New Zealand

  • ACCA has one representative in Auckland and holds its exams in Auckland.

Caribbean, Central & South America

Africa

South Africa

  • The ACCA Professional Scheme has been registered at Level 7 (equivalent to master degree level).

Zimbabwe

  • ACCA Zimbabwe is one of the constituent bodies of the Public Accountants and Auditors Board (PAAB). The PAAB is a statutory body established in 1996, to oversee the regulation of the profession and maintain a register of persons entitled to work or practise as public accountants or public auditors in Zimbabwe. Only members in good standing of ACCA and Institute of Chartered Accountants of Zimbabwe register as auditors.

Others

Asia

China

Hong Kong SAR
  • A new Agreement of Recognition Arrangement (ARA) between ACCA and HKICPA (Local statutory accountancy body) was put in place on 22 August 2006, backdated to 1 July 2005. Details.

This replaced the old Mutual Recognition Agreement (MRA) that was terminated by HKICPA on 30 June 2005. It was a disaster for ACCA members when they had to go through so called "8 unfair terms" e.g.holding a degree recognized by HKICPA (ACCA degree offered by OUB was failed in the test), worked under HKICPA authorized employers,attend workshop, passed Final Professional Examination (FPE) etc.

On the contrary, HKICPA members could join in ACCA without any further requirement.

  • However, ACCA qualification is highly recognized by the Hong Kong employment market due to international and historical influences. Most HKICPA members qualified through HKSA-ACCA joint scheme which was operated for more than 20 years. HKSA (Hong Kong Society of Accountants) was the old name of HKICPA.

As of end of 2005, there are 16,609 members in Hong Kong SAR

Macau SAR
  • The ACCA currently is legally recognized with the joint scheme relationships by Macau Society of Certified Practising Accountants (Local statutory accountancy body) in Macau.

Singapore

  • ACCA and national accountancy body, Institute of Certified Public Accountants of Singapore (ICPAS), have operated a Joint Scheme of Examinations since 1983. The Joint Scheme is based on ACCA's examinations and allows students to sit papers in Singapore law and tax. All students who successfully complete the Joint Scheme examinations satisfy the examination requirements of both ACCA and ICPAS and are eligible to apply for membership of both bodies. ACCA's student numbers in Singapore for the Joint Scheme have topped 11,000.
  • A blog has been set up at www.acclawsg.wordpress.com to assist those preparing for the Singapore variant law paper.
  • Singapore government recognizes ACCA qualification to meet her migration skills assessment to immigrate in Singapore.

As of end of 2005, there are 5,161 members in Singapore.

Taiwan

Malaysia

  • On the 13th August 2007 ACCA and the Malaysian Institute of Certified Public Accountants (MICPA) signed a mutual recognition agreement (MRA), providing a route for members of both accountancy bodies to join the other body and to enjoy the benefits which both respected designations have to offer.
  • The ACCA or Chartered Certified Accountant qualification currently is recognized by the Malaysian Institute of Accountants (MIA). Only MIA members will be considered as accountants in Malaysia under the Accountants Act, 1967.
  • ACCA is statutory recognised in Part II of the First Schedule of the Accountants Act, 1967.

As of end of 2005, there are 7,417 members in Malaysia

Pakistan

  • ACCA in Pakistan has seen tremendous growth during the last five years with thousands of students enrolling every year into ACCA programs. Various local colleges and universities are also now offering ACCA programs in all major cities of the country.
  • Higher Education Commission (HEC) of Pakistan recognise ACCA member as equal to Masters in Commerce ( M.Com )
  • Also ICAP awards exemption to ACCA affiliates.

Others

  • The ACCA currently is legally recognized by the national accounting institutes with the joint scheme relationships in:
    • Vietnam (The Ministry of Finance of the Socialist Republic of Vietnam);
    • Brunei (Brunei Institute of Certified Public Accountants);
    • Cambodia (The Ministry of Economy and Finance Kampuchea Institute of Certified Public Accountants and Auditors);
    • Laos (The Ministry of Finance of the Lao People's Democratic Republic).
    • Bangladesh (The Institute of Cost and Management Accountants of Bangladesh)
    • The United States Uniform CPA Examination will be offered outside the 55 U.S. jurisdictions for the first time in its history in 2011. The CPA Examination next year will be offered in Japan, Bahrain, Kuwait, Lebanon and the United Arab Emirates in direct competition with ACCA Middle East branches.
    • AICPA has formed a strategic alliance with CIMA to offer a new global accounting designation. This comes out as a result of the launch of Uniform CPA examinations worldwide. AICPA has changed its path moving away from a national based institute offering qualification for CPAs in public practice into an international accounting institute covering both CPAs in public practice and management accountant in conglomerates (something like ACCA does for decades).

Global Partnership

Professional Partners

  • Through a range of partnerships with several universities, ACCA offers students and members access to graduate and postgraduate level accountancy education.
    • The relationship between ACCA and the UK's Oxford Brookes University, has offered ACCA students and members to the Oxford Brookes BSc (Honours) in Applied Accounting, and the online supported MBA.
    • According to the agreements between ACCA and Tsinghua University in Beijing (China), Tsinghua will recognise the Oxford Brookes University BSc(Hons) Applied Accounting degree stated as the above, and will accept the graduates from this BSc(Hons) degree program to further study Tsinghua's master degree programs [5].
    • ACCA and the School of Oriental and African Studies (SOAS) at the University of London have signed a global partnership agreement to enable ACCA’s members and affiliates worldwide to take the SOAS's Postgraduate Diploma in Public Financial Management.[4]
    • ACCA has signed the agreement with the University of Cambridge ESOL examinations (English for Speakers of Other Languages) to result in the launch of the International Certificate in Financial English (Cambridge ICFE), a new financial English exam.
    • Together with the Said Business School, at the University of Oxford, ACCA offers the Diploma in Financial Strategy, a Masters-level course that provides the essential elements of an MBA for qualified accountants, and is designed to extend knowledge and develop senior management skills.
    • ACCA and Edinburgh Business School at Heriot-Watt University have signed a joint agreement to enable ACCA Part 3 students, affiliates and members to gain a fast track entry through free-of-charge credit transfer and exemption when they matriculate for the MSc in Financial Management by distance learning or face-to-face study at a global network of centres.[5][6]
    • ACCA partners Exeter University to offer members postgraduate qualifications in leadership (MA degree in leadership). [6] [7]
    • Through a range of recognitions by many universities in this world including UK, Hong Kong and Universitas 21 Global, there are the accelerated routes for ACCA members to their master degree programmes.[7]

Representation worldwide

  • ACCA is represented on many committees and bodies around the world.[8]
    • European Financial Reporting Advisory Group
    • Fédération des Experts Comptables Européens (FEE)
    • Fédération des Experts Comptables Méditerranéens (FCM)
    • Global Reporting Initiative (GRI)
    • IFAC
    • Institute of Chartered Accountants of the Caribbean (ICAC)
    • Inter-American Accounting Association (IAA)
    • South Eastern European Partnership on Accountancy Development (SEEPAD)

See also

Notes and references

  1. ^ [1]
  2. ^ Page not found | ACCA
  3. ^ Professional partners
  4. ^ [2]
  5. ^ Page not found | ACCA
  6. ^ MSc Financial Management : Edinburgh Business School
  7. ^ Page not found | ACCA
  8. ^ Influential bodies and committees
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