THE IMPACT O 1 1 1 F GLOBALISATION ON

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

2. 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

3. 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

4. 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

5. Model Accountancy Education

6. 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

7. Final Examination Objectives

8. 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

9. 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)

10. 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

11. 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

12. 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

13. 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

14. CC Participating Institutes • France – OEC • Germany – IDW and WPK • Ireland – ICAI • Italy – CNDC • The Netherlands – NIVRA • United Kingdom – ICAEW and ICAS

15. 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

16. 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

17. 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

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

19. 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

20. 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

21. 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

22. 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

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

24. 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.

25. 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

26. 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

27. 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