Issue no.17
(29 October 2004)
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      To: All HKICPA Members
In this issue
MRA with ACCA
Our Ref.: C/IRTF(G), M/NC
29 October 2004
 

MRA with ACCA

Dear Member,

I.
MRA with ACCA Expires on 30 June 2005
The past 30 days of discussions with the ACCA were valuable but regretfully, the talks showed that the ACCA is not committing to an evaluation, and so it appears the MRA will expire as the contract stipulates in June 2005.

When ACCA's reluctance to commit to an evaluation became clear, it was equally clear to the Council and the Institute that the right thing to do was to protect the interests of young people already embarked on ACCA's professional examination. We therefore decided to provide a very generous extension of the deadlines, and we look forward to someday welcoming these students as members.
   
II.
Deadline for Completion of ACCA Exam Extended Three to Five Years
  The Institute has announced extended transitional deadlines for ACCA students to complete their examinations. Those who enrolled with ACCA on or before 15 August 2004 will have three to five years to finish their examinations, as follows:
   

Relevant graduates - 30 June 2007

Non-relevant graduates - 30 June 2008
Non-degree holders - 30 June 2009
 
 

These deadlines give students more flexibility, and combined with the Institute's bridging programme for those who cannot make these deadlines, every student who wants to join the Institute has a way to do so.

III.
Our Sovereign Future ¡V Standing Firm with Our Evaluation
As the statutory body for accountancy in Hong Kong , the Institute has every right to evaluate those bodies who seek our licensing authority for their programme in Hong Kong . Not to do so would deny our role inscribed in Hong Kong 's laws to regulate the quality of entry to the profession in Hong Kong . We are charged with protecting the future of the accounting profession in Hong Kong and we intend to do this.

We are pressing forward with the evaluations of other accountancy bodies and we pledge to conduct these evaluations openly and fairly.

For our ACCA members, let us say again that our desire for an evaluation is nothing more than a fulfillment of our commitment to make our admissions more consistent and uniform. It is not an issue of respect or of personal allegiance. It is not an issue of "us versus them". It is solely about how we recognize other bodies and exercising our right as a statutory body to evaluate their programmes.

Our evaluation methodology and process are the same for all professional institutes, in line with best practices adopted in other countries, and where differences are identified, bridges will be provided. ACCA, together with 13 other bodies were informed of our intentions as far back as 1998. There has been continuous consultations over the years. This is not a sudden decision made without consultation. We fail to understand why ACCA has objected to this process so vehemently.
 
IV.
ACCA Strategies
  Many members of the Institute will have seen ACCA's press release, letter to members, and letter to students distributed on 25 October.
   
 
a.
Portraying the Institute as Bowing to ACCA Pressure:
 
These materials portrayed the ACCA as wringing concessions out of the Institute, when in fact the longer transitional periods were freely offered by the Institute. We have attached two recent letters between the Institute and the ACCA which will clearly show you that we wanted to be generous with these deadlines. (Link to Oct 11 and Oct 18 letters.)
 
 
 
b.
Action on GATS:
 
The ACCA is threatening to approach the UK 's Department of Trade and Industry (DTI) to take, on ACCA's behalf, a complaint of General Agreement for Trade and Services (GATS) violation to the European Commission. Members can rest assured that we have sought and continue to seek the advice and counsel of our senior legal advisors to make sure we are fulfilling Hong Kong 's obligations under GATS and protecting the Institute.
 
 
 
c.
Council Positions:
 
The ACCA is urging its members to pressure the Institute into changing its position. The 25 October letter to members from ACCA's chief executive in London says, "I urge all 14,000 of you who are also members of HKICPA to use your power to attend and vote at the December annual meeting of HKICPA. We understand that some ACCA members will be running to represent ACCA on HKICPA council¡K We urge you to vote for them¡K without representation, your interests will not be protected."

The Council fully support member participation in elections, but do not agree that a respected professional body should seek to control another body in this manner.

We ask for your support for the Institute and for the next generation of Hong Kong accountants in this time of change. We will continue to update you over the next few weeks and months as events unfold.

For and on behalf of the Council


ROGER BEST
PRESIDENT
HONG KONG INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS

WINNIE C. W. CHEUNG
CHIEF EXECUTIVE & REGISTRAR
HONG KONG INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS