THE IMPACT O***F GLOBALISATION ONTHE IMPACT OF GLOBALISATION ONInternational Convergence Global and Regional CooperationREPARIS 2006 By Gert H. Karreman

International ConvergenceGlobal + Regional CooperationConvergence in Accountancy EducationGuidance from IFAC and EUGovernment, Profession, UniversitiesCommon Content ConceptSEEPAD Cooperation South East EuropeCAP CIPA QualificationsPartnerships for Development

Drivers of ChangeUnrelenting competitive pressure Impact of ICTGlobalisation of businessChanging business and organisation structures Focus on valueDemand for new knowledge and skills Changing attitudes to work, family and work environment

GAE Classification of Accountancy EducationQualification, professional education, practical training and general educationStandard setting bodies, professional organisations and educational institutesDeveloped market economy countries, countries in transition and emerging countriesInfluence of major legal systems

Model Accountancy Education

Influence of the Accountancy Profession on Accountancy EducationCountry Characteristics

Cultural backgroundLegal systemEconomic positionHigher education Accountancy Education

Professional qualificationQualification standards Final examination of professional competence Professional education Practical experience General education International Developments

Standards Guidelines Directives

Standard Setters

Qualification standards common law countries: professional body, government + professional bodyQualification standards civil law countries: government, professional body or bothRecognition providers professional education: emphasis on government responsibilityRecognition providers practical experience: emphasis on responsibility professional bodies

Final Examination Objectives

Chart3

100

91

88

78

69

53

38

Percentage

Sheet1

Final Examination ObjectivesFrequencyPercentage

Ability to apply knowledge in practice32 out of 32100

Theoretical knowledge2991

Professional values2888

Intellectual skills2578

Communication skills2269

ICT applications1753

Interpersonal skills1238

Table 560.1 Final Examination Objectives

Sheet1

0

0

0

0

0

0

0

Percentage

Sheet2

Sheet3

Global ComparabilityFinal examination: 29 of 32 professional bodies Co-providers: government, universities, other institutesEducation: 24 of 30 professional bodiesCo-providers: universities, higher education, commercial institutes Practical experience: mostly (at least) three years full time

IFAC International Education Standards and ComplianceIES 1 - Entry RequirementsIES 2 - Education Program ContentIES 3 - Professional SkillsIES 4 - Values, Ethics, AttitudesIES 5 - Practical ExperienceIES 6 - AssessmentIES 7 CPDIES 8 - Audit Professionals (draft)

Regulation by the European UnionEU 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 obtainedMutual Recognition: Examination on national law, tax and professional rules

Global Approach

IFAC ISA and IASB IFRSEU 8th Directive and Mutual RecognitionIFAC IES and ComplianceIFAC Developing Nations Task ForceUNCTAD Model CurriculumIAAER Globalization RoundtablesWorld Bank ROSC Accounting and AuditingUSAID Benchmarking Methodology

Regional Cooperation

Common Content Project in the European Union undertaken by eight Professional InstitutesBenchmarking for SEEPAD in South East Europe facilitated by USAIDCAP CIPA Qualifications for Entry-level Professional Accountants

Common Content ProjectEight accountancy bodies plan to unify their national professional entry-level qualificationsEconomics of scale for member bodies in developing qualifications and enhance mobility of professional accountantsEconomics of scale for trans-national audit firms in training professional accountantsNatural career choice for the highest quality individuals equipped with assurance, finance and business skills

CC Participating InstitutesFrance OECGermany IDW and WPKIreland ICAIItaly CNDCThe Netherlands NIVRAUnited Kingdom ICAEW and ICAS

Common Content ConceptServices provided by Professional AccountantsAssurance 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

CC Education and AssessmentMeet or exceed IFAC and EU requirementsRetention of national qualificationsCommon learning outcomes for all service areas, national content in TLSInterdisciplinary competencies and attributesAssessment at first degree level and for key components at second degree level

USAID Benchmarking ObjectiveSupport 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

SEEPAD ParticipantsAlbania - IEKA Bosnia & Herzegovina - AAARSBulgaria - ICPAKosovo - SCAAKMacedonia - AAFAMoldova - ACAPMontenegro - IRRCGRomania - CAFR and CECCARSerbia - SRRS

Reasons for BenchmarkingBenchmarking to compare systems of accountancy education with international standards and examples of best practiceBenchmarking to support decisions of the professional bodies for future developmentBenchmarking to measure progress over time

Benchmarking CharacteristicsBenchmarks based on classification and international standardsMultiple indicators to set prioritiesSelf assessment with external validationGraphical representation of resultsContribution to country and regional action plansProgress measurement over timeGlobal relevance

USAID Accounting ReformCAP + CIPA training, testing and certificationCAP Certified Accounting PractitionerCIPA Certified International Professional AccountantCoverage of IFAC Accounting, Finance and Related Knowledge and of MISReform of university programs to cover Organisational and Business Knowledge

Regional ObjectivesComprehensive and integrated approach to accounting reform to support economic transitionRegional project for the five Central Asian Republics, Caucasus and Ukraine, and MoldovaEconomic and professional integration into regional and global economic systems

Critical Components

Legal/regulatory environmentTraining, testing and certification of professional accountantsReform of accounting educationSupport for institutional frameworkUtilisation of accounting information

Professional Academic PartnershipsPartnerships 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.

Academic AssociationsEAA 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

JournalsEuropean 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

ConferencesEAA, Annual Congress, 22 24 March, DublinIAAER, 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