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Members Forum HKICPAs Education Training
Policy for Future Generations of Hong Kong CPAs
Recognition of Overseas Qualifications
Review Transitional Arrangements6 October
2004
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Welcome to the Hong Kong Institute of
CPAsMembers Forum
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• Number
• Members
• in the audience 158 (ACCA 73 )
• Total HKICPA 22,560 (ACCA 14,000 )

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1982 2001Joint Examination Scheme (JES)

• For 20 years, HKICPA had used the
• ACCA examination as the qualifying
• examination for Hong Kong.

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Recognition of Overseas Bodies as at 2004

• chart

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• June 2004 HKICPA announced intention to
• re-evaluate its future recognition of
• overseas qualifications
• ACCA Mutual Recognition
• CPAA
• AIA
• AICPA
• CICA Unilateral Recognition
• CIMA
• CIPFA

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The Future vs the Past

• JES was something of the past.
• Since the early 90s, we decided to move on by
  clear policy.
• Over the last 10 years, we have built ourselves
  our own standard and policy for training the next
  generation of accountants to serve Hong Kong and
  its changing business demand as an international
  financial centre and gateway to China.

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Our Vision

• Position the Hong Kong Institute of CPAs as
  Asias premier professional accounting body.
• Protect Hong Kongs future as a premier financial
  centre and the international gateway to China.

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Our Mission

• To produce the best accountants in the world.
• Our Strategic Agenda
• To promote our CPA Qualification Programme as the
  benchmark that will attract and nurture the next
  generation of talent into our profession in Hong
  Kong.

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Requirement of our MRA Partners

• Demonstrate to us, through a transparent due
  process of evaluation that their qualification
  and admission requirement meet the standards that
  the HKICPA has set for itself.

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Evaluation Process forRecognition Arrangements

• Purpose To bring uniformity and consistency to
  the future standard of our membership
  admission.
• Equivalent
  standards
• Recognised overseas
• qualification
• Accredited Degree
• QP (Competency Outcome)
• Authorised Practical Training

? HK qualification
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Due Process Questions

• Members may not have full appreciation
• What are these current standards we have set for
  ourselves?
• How were they established?
• Whether we have gone through due process of
  consultation on these standards?
• Are our recognition partners taken by surprise by
  what we are requiring them to do?
• I shall explain.

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Due Process ofConsultation Preparation over 10
years

• Diary of events
• Pre 1982 Our Own Examination
• 1982 Joint Examination Scheme (JES)
  commenced
• 1993 Third Long Range Plan
• May 1995 ) 3 phases of consultation on
  proposed new
• May 1996 ) Professional Accreditation System
  (PAS)
• Sep 1996 ) incl. transitional arrangements
• June 1997 Blueprint on new PAS published
• 1997 Served notice of termination of JES on
  ACCA

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Due Process of Consultation Preparation over
10 years

• 1993 Long Range Plan where do we want our
  profession to go?
• The quality of future entry into the profession
  can be improved by graduate entry.
• The growing divergence between HK and UK
  practices has pointed to the necessity for the
  Society to provide its own professional
  examinations and determine its own policy to suit
  the changing business demands in Hong Kong.
• Graduate entry is now the international norm.

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1995 1997 Consultation

• - members
• - students
• - educational institutions
• - employer groups
• - business
• - government
• - local and overseas professional
  accounting bodies

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Due Process of Consultation Preparation over
10 years

• 1998/1999 Implementation (Policy decisions,
  system set up, etc. Material development and
  initial training outsourced to
  ICAA/ICANZ/DTT consortium)
• 1998 Notice to 14 bodies we will re-examine
• the basis for our recognition
  arrangements with them.
• 1999 Qualification Programme (QP) launched
  our first home grown qualification that
  meets the highest standard in the world.
• 2000 Mutual recognition agreements with
  ACCA and CPA Australia signed.

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Mutual Recognition AgreementsACCA and CPAA

• Signed contract in May 2000
• Envisions significant changes to examinations and
  entry requirements
• Envisions first review of MRA in June 2005
• Requires one year notice period
• The Institute did this on June 25, 2004

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Due Process of Consultation Preparation over
10 years

• 2001 JES terminated
• Review of QP and other aspects of
  qualification process by ICAS
• 2002 Refinement of existing framework to meet
  recognition requirements
• Liaison with 7 Chartered Accountancy bodies
  to agree Reciprocal Membership Agreements
  (RMA)
• 20 Nov 2002 RMAs signed in Hong Kong at the
  World Congress of Accountants

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Due Process of Consultation Preparation over
10 years

• 2003 Aptitude Test required under RMA
  implemented
• Applicable to 12 bodies ACCA
  CPAA contractually exempted (due to MRA) but
• informed about upcoming review
• 2004 Notification to 7 bodies about review of
  existing
• arrangements Review and
  evaluation underway with CPA Australia
  AIA/AICPA/CICA/CIMA/CIPFA in dialogue to move
  forward
• with the review
• ACCA under discussion.

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2005

• Our Aim
• Unify the standard of the HK CPA designation.
• Complete the last step to fulfil the 1993 Long
  Range Plans vision.

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Georgina Chan to cover-

• QP Concept philosophy
• Accreditation Process for recognition
• Transitional Arrangements

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HKICPAs first and foremost concern

• Students interests are reasonably protected.
• - bridging programme
• - open negotiation with ACCA on transitional
  period (to be considered based on data that ACCA
  had promised).