THE IMPACT O111F GLOBALISATION ON

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THE IMPACT O111F GLOBALISATION ON
THE IMPACT OF GLOBALISATION ON
International Convergence Global and Regional
Cooperation   REPARIS 2006
By Gert H. Karreman
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International ConvergenceGlobal Regional
Cooperation

• Convergence in Accountancy Education
• Guidance from IFAC and EU
• Government, Profession, Universities
• Common Content Concept
• SEEPAD Cooperation South East Europe
• CAP CIPA Qualifications
• Partnerships for Development

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Drivers of Change

• Unrelenting competitive pressure
• Impact of ICT
• Globalisation of business
• Changing business and organisation structures
• Focus on value
• Demand for new knowledge and skills
• Changing attitudes to work, family and work
  environment

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GAE Classification of Accountancy Education

• Qualification, professional education, practical
  training and general education
• Standard setting bodies, professional
  organisations and educational institutes
• Developed market economy countries, countries in
  transition and emerging countries
• Influence of major legal systems

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Model Accountancy Education
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Standard Setters

• Qualification standards common law countries
  professional body, government professional body
• Qualification standards civil law countries
  government, professional body or both
• Recognition providers professional education
  emphasis on government responsibility
• Recognition providers practical experience
  emphasis on responsibility professional bodies

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Final Examination Objectives
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Global Comparability

• Final examination 29 of 32 professional bodies
• Co-providers government, universities, other
  institutes
• Education 24 of 30 professional bodies
• Co-providers universities, higher education,
  commercial institutes
• Practical experience mostly (at least) three
  years full time

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IFAC International Education Standards and
Compliance

• IES 1 - Entry Requirements
• IES 2 - Education Program Content
• IES 3 - Professional Skills
• IES 4 - Values, Ethics, Attitudes
• IES 5 - Practical Experience
• IES 6 - Assessment
• IES 7 CPD
• IES 8 - Audit Professionals (draft)

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Regulation by the European Union

• EU 8th Directive Examination of professional
  competence at university final examination level,
  which guarantees that the theoretical knowledge
  and the ability to apply that knowledge have been
  obtained
• Mutual Recognition Examination on national law,
  tax and professional rules

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Global Approach

• IFAC ISA and IASB IFRS
• EU 8th Directive and Mutual Recognition
• IFAC IES and Compliance
• IFAC Developing Nations Task Force
• UNCTAD Model Curriculum
• IAAER Globalization Roundtables
• World Bank ROSC Accounting and Auditing
• USAID Benchmarking Methodology

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Regional Cooperation

• Common Content Project in the European Union
  undertaken by eight Professional Institutes
• Benchmarking for SEEPAD in South East Europe
  facilitated by USAID
• CAP CIPA Qualifications for Entry-level
  Professional Accountants

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Common Content Project

• Eight accountancy bodies plan to unify their
  national professional entry-level qualifications
• Economics of scale for member bodies in
  developing qualifications and enhance mobility of
  professional accountants
• Economics of scale for trans-national audit firms
  in training professional accountants
• Natural career choice for the highest quality
  individuals equipped with assurance, finance and
  business skills

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CC Participating Institutes

• France OEC
• Germany IDW and WPK
• Ireland ICAI
• Italy CNDC
• The Netherlands NIVRA
• United Kingdom ICAEW and ICAS

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Common Content Concept

• Services provided by Professional Accountants
• Assurance and Related Services (ARS)
• Performance Measurement and Reporting (PMR)
• Strategic and Business Management (SBM)
• Financial Management (FM)
• Taxation and Legal Services (TLS)
• Portability of Qualifications

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CC Education and Assessment

• Meet or exceed IFAC and EU requirements
• Retention of national qualifications
• Common learning outcomes for all service areas,
  national content in TLS
• Interdisciplinary competencies and attributes
• Assessment at first degree level and for key
  components at second degree level

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USAID Benchmarking Objective

• Support professional development in transition
  and developing countries by making available a
  benchmarking methodology that can be used (1) to
  identify strengths and weaknesses in the
  professional qualification of accountants and
  auditors and (2) to measure progress over time
  towards sustainable institutional capacity

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SEEPAD Participants

• Albania - IEKA
• Bosnia Herzegovina - AAARS
• Bulgaria - ICPA
• Kosovo - SCAAK
• Macedonia - AAFA
• Moldova - ACAP
• Montenegro - IRRCG
• Romania - CAFR and CECCAR
• Serbia - SRRS

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Reasons for Benchmarking

• Benchmarking to compare systems of accountancy
  education with international standards and
  examples of best practice
• Benchmarking to support decisions of the
  professional bodies for future development
• Benchmarking to measure progress over time

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Benchmarking Characteristics

• Benchmarks based on classification and
  international standards
• Multiple indicators to set priorities
• Self assessment with external validation
• Graphical representation of results
• Contribution to country and regional action plans
• Progress measurement over time
• Global relevance

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USAID Accounting Reform

• CAP CIPA training, testing and certification
• CAP Certified Accounting Practitioner
• CIPA Certified International Professional
  Accountant
• Coverage of IFAC Accounting, Finance and Related
  Knowledge and of MIS
• Reform of university programs to cover
  Organisational and Business Knowledge

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Regional Objectives

• Comprehensive and integrated approach to
  accounting reform to support economic transition
• Regional project for the five Central Asian
  Republics, Caucasus and Ukraine, and Moldova
• Economic and professional integration into
  regional and global economic systems

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Critical Components

• Legal/regulatory environment
• Training, testing and certification of
  professional accountants
• Reform of accounting education
• Support for institutional framework
• Utilisation of accounting information

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Professional Academic Partnerships

• Partnerships between the professional and
  academic communities stimulated by governments
  are essential for the global development of the
  accountancy profession and are in the best
  interest of universities and other institutes of
  higher education and research.

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Academic Associations

• EAA European Accounting Association, website
  www.eaa-online.org
• EIASM European Institute for Advanced Studies
  in Management,
• website www.eiasm.org
• IAAER International Association for Accounting
  Education and Research,
• website www.iaaer.org

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Journals

• European Accounting Review (EAA)
• Accounting in Europe (EAA)
• Cosmos (IAAER)
• Accounting Education, an international journal
• Accounting Education plans to publish a
  themed issue on the interface between academic
  and professional education and training in
  accounting

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Conferences

• EAA, Annual Congress, 22 24 March, Dublin
• IAAER, World Congress of Accounting Educators, 9
  11 November, Istanbul
• IFAC, World Congress of Accountants 2006,
• 13 16 November, Istanbul
• IFAC CD ROM, Establishing and Developing a
  Professional Accountancy Body, includes
  education, training and examinations