INTERNATIONAL ACCOUNTING INTERNATIONALIZATIO N OF ACCOUNTING PROFESSION GLOBALISATION

INTERNATIONAL ACCOUNTING INTERNATIONALIZATIO N OF ACCOUNTING PROFESSION

GLOBALISATION INTERNATIONALISAT ION

AUSTRALIA 1886 • 1 st professional institute with 45 members was formed 1928 • INSTITUTE OF CHARTERED ACCOUNTANTS IN AUSTRALIA(ICAA) 1952 • AUSTRALIAN SOCIETY OF ACCOUNTANT(ASA)=COMMON WEALTH INSTITUTE OF ACCOUNTANTS+FEDERAL INSTITUTE OF ACCOUNTANTS 1990 • ASA CHANGED TO AUSTRALIAN SOCIETY OF CERTIFIED PRATISING ACCOUNTANTS(ASCPA) 2000 • ASCPA CHANGED TO CPA AUSTRALIA

SCOPE OF BODIES O ACCOUNTANTS O BUSINESS ADVISORS O FINANCE EXPERTS O BUSINESS INFORMATION POST GRADUATION PROGARMME S EXPERTS UNDERGRADUATE IN ACCORDANCE WITH CPA OR ICAA

BANGLADESH O INSTITUTE OF CHARTERED ACCOUNTANTS OF BANGLADESH-main accounting body O Continuing professional education(CPE) to its members. O Core areas of CPE: Financial accounting Auditing Financial management & Management accounting Business and corporate laws Taxation Banking and insurance Topical economies and financial issues Information Technology & Business Information System

BRITAIN First country to initiate development of accounting profession Popularly Known As United Kingdom Three Main Institutes • Institute Of Chartered Accountants Of England And Wales • Institute Of Chartered Accountants Of Ireland • Institute Of Chartered Accountants Of Scotland

CANADA Three Accounting Bodies • CANADIAN INSTITUTE OF CHARTERED ACCOUNTANTS (CICA) • THE CERTIFIED GENRAL ACCOUNTANTS ASSOCIATION OF CANADA(CGA) • SOCIETY OF MANAGEMENT ACCOUNTANTS OF CANADA (CMA)

cont. CICA Established in 1902 for Canada and Bermuda. Eligibility for CA qualification process: EDUCATION • A university degree and specific business course as well as professional program of one’s territory EXPERIENC E • Work experience in a CA training office EVALUATIO N • Three day uniform evaluation

Cont. Two other bodies CGA O Founded in 1908 but officially established by an ACT OF PARLIAMENT in June 1913. O ENTRY to profession requires: • Completion of CGA professional studies which consists of 15 foundation and advanced courses, four professional admission certification examination and two business cases. • Also hold a post secondary bachelor degree. CMA O Also grants professional O • • • designation in management accounting To earn CMA designation: Complete a university degree Pass the entrance examination only Complete a two year strategic leadership programme while gaining practical experience in management accounting environment.

CHINA October 1, 1986 • Regulation of the People’s Republic of China on Certified Public Accountants(CPA) APRIL, 1987 • 1 ST regional institute of CPA in Shanghai. November. 1988 • China institute of CPA(CICP A)

Cont. CICPA O Responsibility of CICPA • Registration of CPA, CPA firms • Conduct of CPA examination EXAMINATION PROCESS EVALUATION PROCESS • MUST BE A CHINESE APLICANT CAN EITHER CITIZEN BE • COLLEGE GRADUATE • SENIOR ACCOUNTANT • WORKED IN • ACCOUNTING OR PROFESSOR ACCOUNTING FIELD • ASSOCIATE FOR MORE THAN 3 PROFESSOR YEARS. CPA’S are required to complete 120 hours of CPE every 3 years. CPA EXAMINATION IS DIRECTED, ORGANIZED AND SUPERVISED BY MINISTRY OF FINANCE

FRANCE Two separate professions Accounting Regulated by the Order of Chartered Accountants under supervision of the Ministry of Economy and Finance Auditing Regulated by the Institute of Statutory Auditors supervised by the Ministry of Justice

Contd. Entry to both profession through common study programme spread over multi stages exams with a minimum period of seven • years DIPLOME PREPARATOIRE AUX ETUDES COMPTABLES ET FINANCIERES DPEF • Requiring one or two years after secondary school C • DIPLOME DETUDES COMPTABLES ET FINANCIERES DECF • Requiring two years • DIPLOME DETUDES SUPERIEURES COMPATBLES ET FINANCIERIES DESC • Requiring one year F • 3 year internship in a professional accounting firm monitored by a INTER qualified principal, preparation of thesis, written exam and a oral test N OATH • Holders are eligible to take professional oath.

RUSSIA O FOUNDATION FOR INTERNATIONAL ACCOUNTING IN RUSSIA (FIAR)accounting body O Differences between IAS and ones used in RUSSIA-resulting in deterioration of business conditions in RUSSIA O Crucial need in improving the environment O Attained by promoting global investors awareness, understanding the issue of dual accounting standards, promoting research, exchange of professional competence, cooperative links between Russia and western countries.

NETHERLANDS Netherlands Institute of Accountants in 1895 1967, all bodies under NETHERLANDS INSTITUE OF REGISTERED ACCOUNTANTS • To be registered accountant: Pass requisite examination from a Dutch university or a diploma from NETHERLANDS INSTITUE OF REGISTERED ACCOUNTANTS. • Only registered accountants are legally authorized to perform audit function since 1970.

KOREA Subjects Testing method 1 st examination Accounting, Business Multiple choice administration, Commercial laws, Basic tax laws, English, Basic economics 2 nd examination Financial accounting, Cost accounting, Auditing, Tax accounting, Financial management Descriptive test Person has to go for practical training of 200 hours at accounting training institute of KICPA(KOREAN INSTITUTE OF CETIFIED PUBLIC ACCOUNTANTS) supervised by MINISTRY OF FINANCE AND ECONOMY IN KOREA.

contd. O Notice in newspaper not later than 30 days prior to the examination • Conditions to attempt the exam • Mode, date and time of exam • Subjects • Date, time and mode of notification of passing candidates O Services performed by CPA: • Audit examination, certification, computation, filing or proposals relating to accounting • Handling of tax matters

KENYA Three accounting bodies regulated through accountancy act chapter 531 of the laws of KENYA: ICPAK(INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF KENYA) • KASNEB(KENYA ACCOUNTANT AN SECRETARIES NATIONAL EXAMINATION BOARD RAB(REGISTRATION OF ACCOUNTANTS BOARD) Operate autonomously, governed by separate boards and perform different functions.

Contd. KENY A Providing mechanisms through which training of accountants can be improved Setting and enforcing standards of professional practice ICPAKmain body Providing maintenance of competence by updating members awareness and knowledge Monitoring ethical behaviour and adjudicating over cases involving indiscipline

KASNEB-administers qualifying examination for accountants as well as company secretaries Contd. KENY A KATC(Kenya accounting technician’s certificate) for those who do not have academic grades for higher qualification CPA certificate RAB deals with registration and licensing of persons who have qualified to become CPA after completion of examination of KASNEB

USA O 54 states and territories with own legislative bodies. O Two bodies in USA • AICPA- AMERICAN INSTITUTE OS CERTIFIED PUBLIC ACCOUNTANTS. • NASBA – NATIONAL ASSOCIATION OF STATE BOARDS OF ACCOUNTANCY O Requirements for qualification for CPA varies from state to state. But, largely the common requirements are; • Specified number of hours of education in accounting • Period of experience • Clearing a rigorous comprehensive examination conducted by AICPA

Two ways to obtain CPA examination INTERNATIONAL QUALIFICATION EXAMINATION(IQ EX) AICPA determines: • Content of examination • Prepares its questions • Decides on method of scoring • Prepares advisory scores • Conduct statistical analysis NASBA serves as a body for state boards accountancy. Also offers IQEX.

Germany O Two institutes : Institute Of Auditors and Chamber Of Auditors O Requirements: graduate from any university and at least five year practical business experience inclusive 4 years of accounting profession. O Oral and written examination O Last they must be a member of WIRTSCHFT SPRIIFER KAMMER

Pakistan : -Two Institutes: Institute Of Chartered Accountant Of Pakistan & The Institute Of Cost And Management Accountant Of Pakistan ICAP OBJECTIVES O To provide the O O advancement in theory & practice of all aspects of accounting To maintain high standard of code of conduct & ethics To conduct examination To provide recruitment & training To update professional education ICMAP OBJECTIVES O To provide structural framework for qualifying the examination pattern O To provide detailed & depth knowledge of subjects O To provide practice in various aspects of accounting & business environment O To enable the students to apply the knowledge at top management & assessing the chief operating executive.

Ireland OInstitute Of Chartered Accountant Of Ireland OSupport to IAS OSupport the need of financial reporting ODesignated as per the Indian rules.

Nigeria OInstitute Of Chartered Accountant Of Nigeria (ICAN) OAt present 12000 members with 90000 students on register ORequirements: the institute is not allowed to set up in public practice as an accountant until he/she applied for and been granted a license for practice.

New Zealand O Institute Of Chartered Accountant Of New Zealand with 27000 members within & overseas. O Three institutes : Chartered Accountant, Associate Chartered Accountant , Accounting Technicians. O Established a professional conduct committee O In favor of international financial reporting

South Africa OSouth Africa institute of Chartered Accountant (SAICA) OAccounting Journal "Accountancy SA” OSAICA Issued An Exposure Draft EDI 158, first time application of International Financial Reporting

India O Institute Of Chartered Accountant of India (ICAI) O Headquarter in Delhi , 118 branches , No. of students 5, 18, 799 O Levels: 1. Entry level test • Common Proficiency Test 2. First stage of theoretical education • Integrated Professional Competence Course 3. Final stage of theoretical education • Integrated Professional Competence FINAL Course

Contd. O Requirement : a person should be of 18 years on the date of application. O foundation course includes 4 papers O Any student who registered is assumed to be the associate member of ICAI. O training of 100 hours in IT O Audit training 8 months equivalent to 6 months article ship training O Continuous practice of less than 5 years is entitled to apply fellowship & designated as FCA O By the end he/she also completed his/her graduation degree from the recognized university.

Factors Induce Internationalization Of Accounting Profession GLOBAL INVESTORS MUTUAL RECOGNITION RECIPROCITY