International Accounting Education Standards: IFRS for Academia

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International Accounting Education Standards
IFRS for Academia?

• 2008 FSA/Deloitte Faculty Consortium
• Karen V. Pincus
• University of Arkansas, IAESB member

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(No Transcript)
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Beginnings the IAESB (International Accounting
Education Standards Board)

• Formerly the IFAC Education Committee
• Develops standards and guidance for education and
  development of professional accountants
• Members include practicing accountants,
  academics, representatives from business, the
  Forum of Firms and public members

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Purpose of International Accounting Education
Standards

• Establish essential elements for accounting
  education prescribe the range of professional
  knowledge, professional skills, professional
  values, ethics and attitudes required
• Broad scope in terms of career stages and roles
• Promote consistency and convergence
• Primary purpose serve the public interest
• Other objectives also exist

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The Current Standards

• IES 1 Entry Requirements to a Program of
  Professional Accounting Education
• IES 2 Content of Professional Accounting
  Education Programs
• IES 3 Professional Skills
• IES 4 Professional Values Ethics and Attitudes
• IES 5 Practical Experience Requirements
• IES 6 Assessment of Professional Capabilities
  and Competence
• IES 7 Continuing Professional Development
• IES 8 Competence Requirements for Audit
  Professionals

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Are We At The Crossroads?

• IFAC working toward convergence and eventual
  compliance is a requirement for all member bodies
• IAESB standards are equal in authority to other
  international standards.

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A U.S. Example
IES 1 ENTRY REQUIREMENTS TO A PROGRAM OF
PROFESSIONAL ACCOUNTING EDUCATION -- 6. For an
individual seeking to begin a program of
professional accounting education leading to
membership of an IFAC member body the entry
requirement should be at least equivalent to that
for admission into a recognized university degree
program or its equivalent. IES 5 PRACTICAL
EXPERIENCE REQUIREMENTS -- 11. The period of
practical experience should be a minimum of three
years. A period of relevant graduate (beyond
undergraduate, e.g., masters) professional
education with a strong element of practical
accounting application may contribute no more
than 12 months to the practical experience
requirement.
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Converging Our World Views
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The supply issue is everywhere.

• November 2007 IFAC Global Leadership Survey
• 63 said a shortage of qualified accountants was
  challenging economic growth in their region
• 37 said a shortage of qualified accountants was
  somewhat challenging growth

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Headline Who wants to be an accountant?

• Byline Elizabeth Kazi and Fiona Buffini
• May 31, 2007 (The Australian Financial Review)
  Australias accounting profession has downgraded
  its entry requirements, allowing non-accounting
  graduates to undertake conversion courses. Entry
  requirement changes mean that a commerce or
  accounting degree is no longer a prerequisite for
  the right to sit exams to become a chartered
  accountant. . . . The changes have reportedly
  been driven by the four large accounting firms,
  which have experienced problems recently
  attracting adequate numbers of qualified
  graduates.

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Mobility issues are everywhere.www.commoncontent
.com
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The Scenario (Maybe?)
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The Way Ahead The Framework Project
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Framework Issues

• Why? (objectives)
• Who? (roles)
• When? (pre-qualification and post-qualification
  education and development)
• What? (technical content, skills, assessment)
• How? (e.g., generalist first, specialist later
  or standards for each specialty)
• Where? (audience member bodies or all providers
  of education?)

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The Way Ahead Revision of the Standards
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The Road Map

• Ongoing Review of Framework
• Sought initial input via online survey and focus
  groups
• May discuss issues (agenda item 2-1)
• September discuss first draft
• December new exposure draft
• Early 2009 public comment period
• Upcoming Revision of Standards Project
• See discussion paper for agenda item 4-1 of
  February 2008 meeting

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More Information

• IAESB
• http//www.ifac.org/Education/
• Karen Pincus Chair of the IAESB framework
  revision task force
• US Member Bodies of IFAC
• AICPA Denny Reigle
• Mary Stone Chair, Pre-Certification Education
  Executive Committee
• NASBA Charlie Calhoun, CAG representative
• IMA