Exemption Policy of ICAP

All candidates seeking exemptions are required to apply on the prescribed Exemption Form along with the fee and supporting documents/ certificates as mentioned on the Form to the Directorate of Examinations before the prescribed date of submission of Examination forms.
No exemptions shall be given from any ICAP examination or paper(s) thereof to any individual, Professional Accountancy Institution or body or University unless such request:

(a) is received from the Certificate awarding body;
(b) the said body is making the request on a reciprocal basis; and
(c) the request is subjected to a detailed evaluation procedure to be laid down by ICAP and made transparent.
As per conditions mentioned in para above, the under-mentioned specific exemptions as approved by the Council of ICAP are presently available:

1. The examination and the training prescribed by the following Chartered Accountancy institutes will be treated as equivalent to the examinations and training prescribed under the Chartered Accountants Bye-Laws 1983 for the purpose of membership of ICAP:
   i. The Institute of Chartered Accountants in England & Wales (ICAEW);
   ii. The Institute of Chartered Accountants in Ireland (ICA Ireland);
   iii. The Institute of Chartered Accountants in Scotland (ICAS);
   iv. The Institute of Chartered Accountants in Australia (ICAA); and
   v. The Canadian Institute of Chartered Accountants (CICA).
   Provided that if such members desire to start practice as Chartered Accountants, they will have to pass the papers of "Advanced Taxation" and "Corporate Laws" of the Final examination and also undergo training with a firm in practice in Pakistan for one year if their training did not involved atleast 50% training with a firm / in practice.
2. Candidates who have successfully completed all examinations of following accountancy bodies will be exempt from the PPT, Foundation and Intermediate examinations (Modules A to D) of ICAP.
   i. Association of Chartered Certified Accountants (ACCA);
   ii. Chartered Institute of Management Accountants (CIMA); and
   iii. Institute of Cost and Management Accountants of Pakistan (ICMAP).
   Such candidates shall apply for exemption from PPT, Foundation and Intermediate examinations of ICAP and join Training Organisation for a training period of three years. However, if such candidates are unable to pass their Modules E and F examinations in first attempt, their training period shall be extended to 3.5 years.
   Moreover, these candidates shall be eligible to appear for Module E examination eighteen months after entering the training arrangements and shall be eligible for Module F examination during the last year of training.
   ICMAP 3 parts (pre Jan 1995 Syllabus) or ICMAP Intermediate / Part II (pre December 1998 Syllabus) or Professional I (Post Dec 1998 Syllabus) Passed students are exempted from PPT.
3. Candidates who have successfully completed all examinations of American Institute of Certified Public Accountants (AICPA) will be dealt with on case to case basis. Such candidates are advised to complete the prescribed Exemption form and submit it along with copies of certificates, copies of syllabus certified by AICPA and other details for evaluation. After obtaining exemptions such candidates are required to undergo three years training with the Principal at CA Firm/ Training Organisation.
4. Candidates who have successfully completed all examinations of Pakistan Institute of Public Finance Accountants (PIPFA) under the Private Sector Scheme and Syllabi will be exempted from the under mentioned entrance test and examinations of ICAP:
   - Pre-entry Proficiency Test (PPT)
   - Foundation Examinations : All Papers of Module A and B
   Eligibility for Examinations and Training Period for PIPFA qualified:
5. Such candidates will attempt Module C soon after obtaining the above mentioned exemptions and getting their registration as Full-Time candidates subject to compliance with the dates of submission of examination forms. Upon passing Intermediate stage examinations, such candidates will undergo a continuous training period of 3 years in Training Organisations. However, if such candidates are unable to pass their Modules E and F examinations in first attempt, their training period shall be extended to 3.5 years.'
6. PIPFA qualified candidates who hold graduation degree may join training at Training Organizations upon obtaining exemptions from PPT and Foundation stage. Such candidates will undergo a continuous training period of 3 years in Training Organisations. However, if such candidates are unable to pass their Modules E and F examinations in first attempt, their training period shall be extended to 3.5 years.Such candidates will attempt their examinations after completing the prescribed eligibility period for Trainee Students.
7. PIPFA candidates will take Final Examinations for Modules E and F during and after their training as per rules.

What's new

This list represents the very latest developments in IFRS, UK GAAP, UK regulation and Narrative reporting. All items are archived into the relevant sections in each topic. Go through to more information if you wish to read more about any of the topics and find past "What's new" entries from previous months.

IFRS

Recent standards and related regulations

Amendment to IFRS 2 - Group cash-settled share-based payment transactions

Access to 'unaccompanied standards' (the core standards, excluding additional content such as basis for conclusions) is now freely available from the IASB’s website.

Current projects and consultations

ED IFRIC 14 (IAS 19) Prepayments of a minimum funding requirement

Exposure draft fair value measurement

Further information on IFRS

UK GAAP

Recent standards and regulations

Amendments to FRS 2, FRS 6 and FRS 28 legal changes

FRS 30 Heritage Assets

Amendment to FRS 29 – Improving disclosures about financial instruments

Status of Adoption into UK GAAP of IFRIC Interpretations

Current projects and consultations

FRED: Improvements to FRSs 2009

Technical releases and other guidance

IFRS and the Government Sector (17 March 2008)

Further information on UK GAAP

Narrative reporting

Current projects and consultations

ED management commentary

Further information on Narrative reporting

UK regulation

Recent pronouncements and regulations

Disclosure of directors’ remuneration

Current projects and consultations

FRC ED Going concern guidance for directors

FRC DP – Reducing Complexity in Corporate Reporting

ICAEW representations and reports

FRC DP – Reducing Complexity in Corporate Reporting

Publications and other guidance

Financial and Accounting Duties and Responsibilities of Directors

Further information on UK regulation

The Financial Reporting Faculty and China

About the Financial Reporting Faculty (Chinese) (PDF 201kb/2 pages)

IFRS recent standards and related regulations

A summary of recent standards, interpretations and other pronouncements affecting companies that report under IFRS.

Under EU regulations companies listed on an EU regulated stock exchange must prepare accounts under IFRS as approved by the EU. AIM listed companies moved to IFRS on 1 January 2007. Other UK companies within the UK have a choice of reporting under UK GAAP or IFRS.

The European Financial Reporting Advisory Group (EFRAG) regularly publishes an Endorsement Status Report which provides an overview of standards and interpretations that have been endorsed and those pending endorsement.

Latest version Endorsement Status Report

Access to 'unaccompanied standards' (the core standards, excluding additional content such as basis for conclusions) is now freely available from the IASB’s website.

Recent standards

Amendment to IFRS 2 - Group cash-settled share-based payment transactions
Published: 18/06/09 - Effective: 01/01/10

Annual Improvements 2008-2009
Published: 16/04/09 - Effective: 01/10/09

Amendments to IFRIC 9 and IAS 39: Embedded derivatives
Published: 12/03/09 - Effective: 30/06/ 09

Amendment to IFRS 7 - Improving disclosures about financial instruments
Published: 05/03/09 - Effective: 01/01/ 09

Revised version of IFRS 1 with improved structure
Published: 27/11/08 - Effective: 01/07/09

Update to amendments to IAS 39 and IFRS 7: reclassification of financial assets
Published 27/11/2008 - Effective: 1/07/2008

Amendments to IAS 39 and IFRS 7: reclassification of financial assets*
Published: 13/10/2008 - Effective: 1/07/2008

Amendment to IAS 39 Financial Instruments: Eligible hedged items
Published: 31/07/2008 - Effective: 01/07/09

Amendments to IFRS 1 'First-time Adoption of IFRS' and IAS 27 'Consolidated and Separate Financial Statements' *
Published: 22/05/08 - Effective: 01/01/09

Improvements to IFRS *
Published: 22/05/08 - Effective: 01/01/09

IAS 32 Financial Instruments: Presentation and IAS 1 Financial Instrument Presentation Amendments - Puttable Financial Instruments and Obligations Arising on Liquidation *
Published: 14/02/08 - Effective: 01/01/09

IFRS 3 Business Combinations & IAS 27 Consolidated and Separate Financial statements *
Published: 10/01/08 - Effective: 01/07/09

IFRS 2 Share-based Payment (amendment)*
Published: 17/01/08 - Effective: 01/01/09

IAS 1 'Presentation of Financial Statements'*
Published: 06/09/08 - Effective: 01/01/09

IAS 23 'Borrowing Costs'*
Published: 29/03/07 - Effective: 01/01/09

IFRS 8 ‘Operating segments’*
Published: 11/06 - Effective: 01/01/09

* EU endorsed.

ASB statements applicable to UK IFRS reporters

Reporting Statement 'Retirement Benefits - Disclosures'
Published: 22/01/07

Recent IFRIC interpretations

IFRIC 18 Transfers of Assets from Customers
Published: 29/01/09 – Effective: 01/07/09

IFRIC 17 Distributions of Non-Cash Assets to Owners
Published: 27/11/08 - Effective: 01/07/09

IFRIC 16 ‘Hedges of a Net Investment in a Foreign Operation’*
Published: 03/07/08 - Effective: 01/10/08

IFRIC 15 ‘Agreements for the Construction of Real Estate’
Published: 02/07/08 - Effective: 01/01/09

IFRIC 14 ‘IAS 19 - Defined Benefit Asset and Minimum Funding Requirements’* Published: 05/07/07 - Effective: 01/01/08

IFRIC 13 ‘Customer Loyalty Programmes’*
Published: 28/06/07 - Effective: 01/07/08

IFRIC 12 ‘Service Concession Arrangements’*
Published: 30/11/06 - Effective: 01/01/08

IFRIC 11 ‘IFRS 2 Group and Treasury Share Transactions’*
Published: 02/11/06 - Effective: 01/03/07

IFRIC 10 ‘Interim Financial Reporting and Impairment’*
Published: 20/07/06 - Effective: 01/11/06

* EU endorsed.

Financial Reporting Council (FRC)

FRC Guidance on Going Concern for Smaller Companies
Published 3 March 2009

Accountants for Business

Bringing benefits, from the boardroom to the small business sector

Accountants for Business is the global theme adopted for 2009 / 10 by ACCA (the Association of Chartered Certified Accountants).

This theme emphasises the important roles accountants play in both the private and public sectors, promoting their role as advocates of sound business practices, champions of sustainable business development and identifiers of value drivers which lead to high-performing organisations.

Dr Steve Priddy, Director of Technical Policy and Research, ACCA says: “This is an agenda for business which puts sound financial management at its heart.
It highlights the importance of accountants to fostering long-term corporate success.

“There has never been a more crucial time for accountants to continue to show their true value. Over the last 18 months, as a systemic banking collapse has evolved into significant worldwide recession in many countries, a range of presumptions about accounting, organisations and society will be questioned – and we believe that the role of the accountant will emerge into a golden age as a champion of sustainable value in business.

“Corporate governance, regulation, asset pricing, risk management, remuneration design are all subject to root and branch examination. What organisations need now is the firm leadership and financial discipline for the immediate short term, and the confidence of knowing they possess a business model which is sustainable. As global economic conditions continue to be uncertain, CFOs have every opportunity to emerge as leaders and to rise to the challenges ahead.”

ACCA’s website will include the latest research, events and opinion on this issue – visit http://www.accaglobal.com/accountants_business

Remember the looming tax credit renewal deadline

ACCA (the Association of Chartered Certified Accountants) is reminding existing and new recipients of tax credits to make their renewals by the deadline of 31 July. This follows ACCA’s recent survey which revealed that only 9% of 2,000 people questioned in the UK said they were fully aware and took advantage of tax breaks.

Ultimately tax credits such as Child Tax and Working Tax are important as they pay people based on their last year’s income. Increases in income in the current year should be communicated to the tax credits office immediately as it will probably mean recipients are being overpaid. The same is for where income decreases, but in this situation recipients will not be clocking up any over-payments which will need repaying. Under-payments can, however, only be backdated by three months.

Chas Roy-Chowdhury, head of taxation at ACCA says: “I know the paperwork involved in completing these forms can look daunting to most recipients of tax credits, but recipients must meet this deadline.”

Forms can either be completed in person or by phone. If opting for the latter, recipients can do so by calling the tax office on 0845 300 3900 and having their income details to hand as well as their P60 form if they are in employment, or estimated income if they are self-employed. Those using estimates, should also note the second deadline of 31 January 2010 in providing the actual income information.

Roy-Chowdhury adds: “One way or another, people need to act before 31 July, even if this is just to review their current position if they are a higher income claimant. The higher income claimant is one where they receive a ‘nil award’ or just the family element of the child tax credit. People need to check that their circumstances have not changed. Otherwise, the renewal will happen automatically without the need to renew. Any increase in income in the current year should be communicated to the tax credits office immediately as it will probably mean recipients are being overpaid.”

ACCA calls for principles-based approach to avoiding future financial shocks

Global report outlines financial framework
Financial regulation across major capital markets must be overhauled only after a comprehensive review of the factors which contributed to the global financial crisis, says ACCA the Association of Chartered Certified Accountants) in an international policy paper published today.
The report, The Future of Financial Regulation, urges global authorities not to rush to introduce heavy-handed regulation. Instead, it calls for joined-up action involving governments, regulators, companies and other stakeholders to ensure lasting improvements which will address both the current problems and anticipate future threats to the integrity of the financial systems and broader economy.
Helen Brand, chief executive of ACCA, says: “We have spoken to chief financial officers, auditors and financial regulators from all the major capital markets and have produced a set of recommendations and principles which we hope will provide authorities across the world with a blueprint for regulation. It is important that governments co-ordinate their approach to restore confidence in the markets, though we are clear that this does not equate to a 'one-size fits all' policy.
"It is vital that the apparent failure of 'light-touch' regulation does not become synonymous with a victory for rules over principles. The most important issue is not so much the description of the system, but that all parties understand and respect the purpose of regulation and that effective enforcement takes place. And those being regulated - banks and other businesses - have a crucial role to play in establishing a workable system."
Amongst the report’s conclusions are:• Competition: Governments and national authorities should regard the promotion of healthy competition in the market place as a top priority. Policy must be geared to preventing the creation of institutions which are 'too big to fail'. This is anathema to effective regulation. Competition of ideas also benefits regulators and the welcome sharing of knowledge and best practice between countries should not extend to uniform requirements being adopted regardless of local market conditions. • Systemic approach: the regulatory system must take wider macro-economic factors into account and this should complement more effective monitoring of capital and leverage ratios of individual institutions. All relevant entities should be brought into the regulatory net. It is also crucial that regulators have sufficient numbers of staff with first-hand knowledge of their industries. • Governance: Financial institutions, encouraged by regulators, should adopt ethics-based corporate cultures on issues like remuneration which aim to ensure they act in the long-term interests of their stakeholders. The weaknesses in corporate governance and risk management practices shown up by the crisis must be addressed, with a specific review of whether the presence of non-executive directors on a company board remains an effective means of exerting supervision over the executive in large and complex institutions. • Accountability: The accountancy profession must consider ways of making the processes of financial reporting and auditing more useful to shareholders. Enhancing the quality of reporting on risk is key here. But accounts must continue to be geared principally to shareholders rather than regulators.
Helen Brand concludes: “ACCA is encouraged that many of the ideas put forward in our paper coincide with recommendations being made elsewhere – the recent US Treasury White Paper Financial Regulatory Reform, published in 17 June 2009, stresses key causes of the crisis - the failure of risk management systems to keep pace with the complexity of new financial products and gaps and weaknesses in the supervision of firms by regulatory authorities. The US proposals recognise the need for a regulatory system which is simpler but more effectively enforced, and which is also able to adapt and evolve with changes in the financial market.”
- ends -
Notes to Editors1. ACCA is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. We have 362,000 students and 131,500 members in 170 countries worldwide. 2. ACCA has worked with governments, national organisations and development agencies in emerging economies- for over 20 years- promoting the accounting profession, to create value for the communities, businesses and individuals it serves. 3. ACCA believes that globalisation of business means that one set of reporting standards is essential. We favour the principles-based IFRS. 4. ACCA understands the real issues facing small businesses as 63,000 of our members work in SMEs or small partnerships worldwide. 5. The report can be found on ACCA’s website http://www.accaglobal.com/pdfs/future_fin_reg.pdf

New Articles Related to F9 & P1

F9:Optimum Capital
http://accastudent.newsweaver.co.uk/notessa-microsites/images/7062/11242/111211/T_OPT_CAP_STRU.pdf
P1:Professional
http://accastudent.newsweaver.co.uk/notessa-microsites/images/7062/11242/111211/T_PROFESSIONAL_MARKS_EDIT.pdf

Report calls for principles-based approach to avoid future financial shocks

ACCA calls for review before regulation
29 Jun 2009
ACCA has published an international policy paper urging global authorities not to introduce heavy-handed regulation until a comprehensive review of the factors that have contributed to the global financial crisis has taken place.
The report, The Future of Financial Regulation, calls for joined-up action involving governments, regulators, companies and other stakeholders to ensure lasting improvements that will address both the current problems and anticipate future threats to the integrity of the financial systems and broader economy.
'We have spoken to chief financial officers, auditors and financial regulators from all the major capital markets and have produced a set of recommendations and principles which we hope will provide authorities across the world with a blueprint for regulation,' said Helen Brand, ACCA chief executive. 'It is important that governments co-ordinate their approach to restore confidence in the markets, though we are clear that this does not equate to a "one size fits all" policy.
'It is vital that the apparent failure of "light-touch" regulation does not become synonymous with a victory for rules over principles. The most important issue is not so much the description of the system, but that all parties understand and respect the purpose of regulation and that effective enforcement takes place. And those being regulated - banks and other businesses - have a crucial role to play in establishing a workable system.'
Download a copy of The Future of Financial Regulation here.

IFRS convergence must go on, says ACCA chief executive

ACCA chief executive Helen Brand has insisted that the push towards IFRS convergence must continue, adding that it would be 'disastrous' if years of effort were wasted because of political reasons. Brand's comments follow the International Accounting Standards Board's (IASB) ECOFIN meeting in Luxembourg on 9 June, at which Sir David Tweedie outlined IASB's ongoing activity. 'ACCA supports the development of global accounting standards and endorses independent standard setting as the main means by which this is being advanced,' said Brand.
'There is an urgent need for a new standard on financial instruments. The current standard IAS 39 can produce overly complex financial statements and is difficult to apply. IAS 39's various amendments and options have reduced comparability between financial statements. 'The new standard should, if at all possible, be jointly developed by the IASB and the US standard setter to assist with acceptance and comparability. Proper due process and adequate consultation are also vital for this even when the need for a standard is urgent. We support the timeline proposed by the IASB and look forward to contributing to the development of this replacement standard when the exposure draft is published in July.'
For further information please contact: Andrew Swailes, ACCA Newsroom +44 (0)20 7059 5823 +44 (0)7525 392535 andrew.swailes@accaglobal.com

UK Budget 2009

ACCA's head of taxation responds
ACCA responds to the measures announced by UK Chancellor Alistair Darling in the UK Budget on 22 April 2009
'There are few giveaways in this Budget from the UK Government because there has been little room for manoeuvre,' said Chas Roy-Chowdhury, ACCA head of taxation. 'The surprising tax rate of 50% for those earning £150,000 or more goes against the earlier election promise made by the UK Government, unless an election happens before April 2010.
'This is indeed a Budget for serious times, where many key measures had already been leaked to test the reaction. If the UK Government wishes to make the fiscal stimulus work, then it needs to stop talking about tax increases.
'While tax rises have been brought forward in order to balance the books, it does nothing to encourage spending. We have already seen this by way of people using surplus cash to pay down their mortgages. The worst of the downturn may now be over, so let's make sure the economy does not just bounce along the bottom with the UK Government paying negative lip service to taxpayers on the future direction of tax.

ACCA in Global Economy

ACCA members now have the opportunity to share experiences and access personal support on dealing with the current economic situation through the launch of a dedicated new microsite.
Entitled Global economy: addressing the challenges, the microsite brings together existing analysis, resources, business strategy ideas and discussion boards giving ACCA members an opportunity to gain insight and share ideas on how to meet the current challenges and exploit the opportunities presented in 2009.
'The key issue with ACCA's new site is that it offers a reciprocal channel of communication,' said Richard Aitken-Davies, ACCA president. 'We are determined that, rather than just talking at our members about the current global economic situation, the new site will facilitate member collaboration by drawing on their own experiences and opinions. We have considerable expertise and thought leadership among our global membership who can offer support and insight into issues which will affect economies in different ways.
'It is also important to recognise that the economic situation is having an impact at all levels, which is why the microsite includes a support section which will point members in the direction of a range of internal and external resources that will offer not just business support, but emotional support and advice too.'
Coverage of past and future events around the global economy theme will also feature on the site, as will regular blogs by professional experts giving their thoughts and opinions on the latest issues.