[Fulltext] Don't be confused by the global babble. Moves by the international accountancy bodies to establish a global business qualification have major implications, writes Daisy Downes.
Maybe you read about it in the papers, maybe you missed it, maybe you wondered what it was all about. A recent press release issued by the Institute of Chartered Accountants in Ireland (ICAI) announcing details of a new global business designation was timed to coincide with the issuing of releases by accountancy bodies around the English speaking world. What is happening is that ICAI has joined with seven other leading professional Institutes from around the world to form a Global Task Force which will explore the creation of a new international business qualification. "Big deal?" you say. Well, read on.
Market research conducted on behalf of the accountancy bodies shows that prestigious business qualifications are valued not just by the individuals who hold them but also by the buyers of professional services. Some 80% of respondents across the 11 countries surveyed claim to want a global credential and more than 90% believe a relevant credential is important for individuals today.
For the buyers of professional services the proposed new qualification will provide a global third-party standard by which to evaluate providers of professional services. It will also enable professionals themselves from a wide range of disciplines to build on their ethical standards, traditional skills and expertise, and will help them to provide a broader range of globally relevant services to clients, customers and employers.
A Task Force established by the accountancy bodies to coordinate the project is being headed by Robin Hamilton Harding, former Chief Financial Officer of Bell Canada, who assumes the role of Chief Operating Officer. Harding stresses that the new qualification will be attractive to candidates not just from the accountancy profession but also from disciplines such as law, IT, engineering, and economics. Discussions are currently being initiated with leading business professions and accountancy Institutes around the world to attract support. Initial contacts with the Big 5 global firms suggest that their level of support for the project is reasonably strong.
The establishment of the Task Force has been welcomed by ICAI President David Simpson. Pointing to the tremendous professional opportunities presented in today's rapidly expanding economy Simpson says "We can best capitalise on these opportunities by cooperating with the other Institutes to maximise the strategic use of our collective skills and competencies."
While the designation or name of the new qualification has yet to be agreed, the substance is that it will complement the existing professional credentials of Chartered Accountants as well as the work of such international associations as the International Federation of Accountants and The International Accounting Standards Committee. It is also anticipated that the qualification will attract holders of MBAs who, while they have broad business knowledge, sometimes lack the distinctive competencies required to lever knowledge in the creation of value.
Given the growing questioning of the relevance of traditional accounting skills, it was only a question of time before an initiative such as this emerged. Some of the academics in our midst are already predicting that the accountancy profession will become the first dinosaur of the 21st century. Already more than 60% of Irish Chartered Accountants are working in business. Less than 40% are in practice and if those working for the Big 5 are excluded from that pool then the numbers of smaller practitioners are very diminished today to what they would have been even 10 years ago.
The accountant's role in business is also changing. The days of the "chief accountant" are long gone. Today's Finance Directors and Chief Financial Officers require a broad range of skills - not just in accountancy and finance but in other disciplines like information technology and even knowledge management.
It is in this context that the need for a more broadly based business qualification is emerging and it is precisely this gap in the market that is being targeted by the project. Do not fall into the trap of believing that this is simply a re-branding of the CA qualification. What is envisaged is something entirely new.
Whether or not existing members of the various Institutes will automatically qualify to use the new designation remains to be seen. The Irish representatives in the discussions have strongly advocated the approach that all existing Chartered Accountants should meet the initial requirements for the new designation but not all of the global participants share this view.
Another interesting question concerns which other disciplines will qualify for the new designation. Harding has stressed that consultation will take place not just with accountancy firms but also with other professionals. We will have to wait to see how wide the net is thrown and what fish get caught in the process. In the early stages we can expect to see discussions with bodies representing disciplines such as law, finance, management consulting and IT. Given the diversity of potentially qualifying bodies, it may be some time before we see real progress on this front.
What is clear, however, is that this project has the potential to deliver significant benefits to the business community. The new qualification will provide a global standard of ethics, quality and performance, thereby contributing to improvements in risk management. If successful, it should create a pool of employment candidates who can demonstrate that they meet rigorous academic, professional and competency standards. The great strength of the Chartered Accountancy qualification has been that it is in many respects a global passport - at least in the English speaking world. Global reciprocity of the new qualification should offer those holding it similar mobility.
So - will this project sink or swim? While it is tempting to suggest that it is born of the triumph of hope over experience, it is also true that no profession is better placed to make the most of the opportunity. Let's hope it works well. The future may depend on it.
Daisy Downes is Editor of Accountancy Ireland.
Participants in the project are the American Institute of Certified Public Accountants (AICPA), the Canadian Institute of Chartered Accountants (CICA), the South African Institute of Chartered Accountants (SAICA), the Institute of Chartered Accountants in Australia (ICAA), the Institute of Chartered Accountants in New Zealand (ICANZ), the Institute of Chartered Accountants in England & Wales (ICAEW), the Institute of Chartered Accountants of Scotland (ICAS), and the Institute of Chartered Accountants in Ireland ( ICAI).
Accountancy Ireland Vol 32 No 3 June 2000.