HONG KONG SOCIETY OF ACCOUNTANTS

Transcription

1 HONG KONG SOCIETY OF ACCOUNTANTS (Incorporated by the Professional Accountants Ordinance, Cap. 50) 4th Floor, Tower Two, Lippo Centre, 89 Queensway, Hong Kong. Tel: Fax: / Web: hksa@hksa.org.hk Dear News/Business Editor, (For immediate release) HKSA announces news of landmark signing of an Agreement between the PRC Ministry of Finance and the Financial Services and the Treasury Bureau of the HKSAR Government Marking an important milestone in building a stronger relationship between the Accountancy professions in Hong Kong and Mainland China (HONG KONG, 27 August 2004) The Hong Kong Society of Accountants (HKSA) is pleased to announce the news of the signing today in Beijing of an agreement on Mutual Examination Paper Exemptions for Mainland and Hong Kong Accountants. The signing of this Agreement takes place after successful discussions between the HKSA, the Ministry of Finance of the People s Republic of China (MOF) and the Chinese Institute of Certified Public Accountants (CICPA) via the MOF/CICPA/HKSA Joint Task Force constituted in February of this year. The Agreement was signed in Beijing between the MOF and its Hong Kong counterpart, the Financial Services and Treasury Bureau (FSTB) of the HKSAR Government, alongside the signing of the Closer Economic Partnership Arrangement (CEPA) II agreement. This represents a significant milestone achieved by the accountancy profession in the Mainland and Hong Kong, and will lead to a formal agreement on co-operation to foster closer working relations between CICPA and HKSA. Under the terms of the agreement, individuals who have passed the PRC CPA Uniform Examination will be exempt from two modules: Module B Financial Management and Module C Auditing and Information Management of the HKSA Qualification Programme (QP); Individuals who have passed the HKSA s QP will be exempt from two modules: Financial Cost Management and Auditing of the PRC CPA Uniform Examination. This agreement represents the results of the first stage of discussions between the MOF/CICPA and HKSA and established the principles of the mutual examination paper exemptions. The implementation details are currently being worked out between the HKSA and CICPA. The MOF/CICPA/HKSA Joint Task Force will also continue to consider the exemption arrangements for HKSA members who are not qualified through the HKSA QP and CICPA members who are not qualified through the PRC CPA Uniform Examination. Commenting on the agreement, Roger Best, President of HKSA said: This is a very exciting development for the HKSA and its QP graduates. The successful conclusion of this agreement represents the first step towards the HKSA s longterm goal of achieving mutual recognition of accounting qualifications between the Mainland and Hong Kong

2 Hong Kong s role as a global financial centre and the increasing globalisation of the profession makes it a strategic imperative that we forge international partnerships and exchange best practice. Nowhere is this more important than in Mainland China. Many of our members are working in the Mainland and taking their world-class skills to that increasingly important market. We are delighted that HKSA members will be able to enjoy closer working relations with the Mainland and reap the benefits of our closer association under this agreement and further co-operation agreements stemming from it, continued Mr. Best. He thanks the support of both the Central and HKSAR Governments in coming to this agreement. This achievement is the result of the collective efforts of the MOF, CICPA, FSTB and HKSA. Added Winnie Cheung, Chief Executive and Registrar of the HKSA: We shall continue to work closely with CICPA on the implementation details, including the membership requirements, training and application processes, with a view to entering into an agreement with CICPA in the near future. We have not lost sight of the interests of the non-qp qualified HKSA members, who will not be qualified for exemptions from the two modules of the PRC CPA Uniform Examination under this agreement at this stage. The exemption arrangements for these members have been included as an agenda item for our next discussion at the MOF/CICPA/HKSA Joint Task Force. We look forward to announcing further positive news on this, continued Ms. Cheung. About HKSA Full details of the agreement are appended to this news release. END The Hong Kong Society of Accountants is Hong Kong s ONLY statutory licensing body of accountants and is responsible for the training, development and regulation of the accounting profession in Hong Kong. It has a membership of over 22,000 accountants and close to 11,000 registered students. On 8 September 2004, the Hong Kong Society of Accountants will change its name to Hong Kong Institute of Certified Public Accountants. The Qualification Programme (QP), the official accountancy qualification programme offered by the HKSA, has received international recognition from seven prestigious chartered accountancy bodies in Australia, England & Wales, Ireland, New Zealand, Scotland, Zimbabwe and South Africa, through the reciprocal membership agreements signed during the 16th World Congress of Accountants held in Hong Kong in late November For more information, please contact the HKSA Communications Department on Media Contacts: Stella To, Director of Communications Florence Chan, Assistant Director - PR & Publicity Hong Kong Society of Accountants Hong Kong Society of Accountants stella@hksa.org.hk fchan@hksa.org.hk Phone: Phone: Mobile: Mobile:

3 Appendix The Accounting Sector under CEPA II The CEPA II clauses in relation to the Accounting Sector are as follows:- 1. To allow consultancy companies in the Mainland established by Hong Kong accountants that have satisfied the requirements of the Mainland s Provisional Measures for the Administration of the Provision of Bookkeeping Services to provide bookkeeping services. Hong Kong accountants providing bookkeeping services shall have the Mainland s accounting qualification certificate. The person in charge of the bookkeeping services shall possess the Mainland s accounting qualification as mentioned above and hold the relevant professional title. 2. When Hong Kong accountants apply for a practising licence in the Mainland, the length of auditing experience they acquired in Hong Kong is equivalent to the auditing experience acquired in the Mainland. 3. To allow eligible Hong Kong residents to take the qualification examinations for professionals and technicians in the Mainland (including accounting technician, assistant accountant, and accountant professional qualification (professional titles), certified tax accountant). Agreement on Mutual Examination Paper Exemptions for Mainland and Hong Kong Accountants under CEPA II In order to achieve the objective of free flow of talents, the MOF/CICPA and HKSA have agreed to offer mutual exemptions on certain modules of the professional accounting qualification examinations in the two jurisdictions to qualified individuals. These modules include Financial Management and Auditing. By offering mutual examination paper exemptions, it is hoped that the Mainland and Hong Kong accountants can more easily obtain each other s professional qualifications, thus fostering the cooperation of the accounting professions in the two places. Arrangement for the Mutual Examination Paper Exemptions Under the agreement, CICPA and HKSA have agreed on the subjects for mutual examination exemptions. Both parties will further discuss the implementation details in accordance with the agreement so that it can take effect as soon as possible. Eligible individuals for the exemptions The agreement represents the first step towards achieving mutual recognition of the accounting qualifications between the Mainland and Hong Kong. Under the agreement at this stage, only those who have sit and passed the HKSA QP will be qualified for the exemptions. At present, 576 individuals have passed the HKSA QP. HKSA has close to 11,000 registered students, of whom 4,500 are qualified to take the QP. Future intakes of QP will also be eligible for the exemptions upon completion of the programme. As CEPA is implemented with the approach of gradual and orderly progress, HKSA will continue to discuss with its Mainland counterparts the feasibility of mutual examination paper exemption arrangements for the non-qp HKSA members so as to facilitate the free flow of professional accountants between the Mainland and Hong Kong

4 CICPA and HKSA memberships The MOF/CICPA/HKSA Joint Task Force on Mutual Examination Paper Exemptions have conducted a very detailed comparative analysis of the PRC CPA Uniform Examination and the HKSA QP. The result of the study shows that the competency requirements of two modules, namely Financial Management and Auditing, are substantially the same. As such, it was decided that mutual exemptions be granted on the two subjects. Individuals who have passed the PRC CPA Uniform Examination will be exempted from two modules of the HKSA QP. If they want to apply for the HKSA membership, they will be required to sit and pass the remaining two modules and the Final Professional Examination of the QP, after which they will also have to satisfy the practical experience and good character requirements. Similarly, individuals who have passed the HKSA QP will be exempted from two papers of the PRC CPA Uniform Examination. They will still need to sit and pass the remaining three papers of the PRC CPA Uniform Examination in order to fulfill the requirements for applying for the CICPA membership. Both the CICPA and HKSA have maintained a very rigorous assessment system for admission of members in order to ensure that members of both bodies are suitable for working in the accountancy profession. Therefore, the agreement should be able to help improve the development of the accountancy profession and facilitate the free flow of professionals in the two jurisdictions. Background information on the professional accounting examinations in the Mainland and Hong Kong 1. CICPA and the PRC CPA Uniform Examination system At present, the PRC CPA Uniform Examination contains five papers, including Accounting, Auditing, Financial Cost Management, Economic Law and Taxation Law. The relevant policy is set by the MOF Examination Board of the PRC CPA Uniform Examination and implemented by CICPA. According to the Articles of Association of CICPA, the Mainland individuals who have passed the PRC CPA Uniform Examination (or with equivalent qualifications) can apply to join CICPA as non-practising members. If they want to become practising members, besides passing the relevant examination, they also need to obtain over two years of auditing experience. As at the end of May 2004, over 100,000 individuals have passed the PRC CPA Uniform Examination and become CICPA members, of whom 60,000 are practising members. 2. The HKSA QP HKSA has offered its local independent Qualification Programme (QP) since 1999 as the benchmark for assessing HKSA members qualifications. The QP has four modules, namely Financial Reporting, Financial Management, Auditing and Information Management and Taxation. Upon completion of the four modules, the QP candidates are required to take the Final Professional Examination, which consolidates the professional requirements of the four modules and tests whether the candidates can apply their professional competencies to the job requirements in practice. To apply for HKSA membership, an applicant should: - 2 -

5 have completed the HKSA QP or have acquired the full membership status of an overseas accountancy body currently recognised by the HKSA Council through completion of its professional examinations and sat and passed the HKSA Aptitude Test (see note 1) on local law and practice; and have acquired the specified practical experience (3 years for approved degree holders, 4 years for approved accountancy diploma holders and 5 years for holders of other academic qualifications). An HKSA member may apply for a Practising Certificate, which is issued annually on application, if he has had a period of not less than four years of full-time approved accounting experience (see note 2) of which at least one year is postqualifying experience i.e. acquired after registration as a member of HKSA or after becoming a member of an accountancy body accepted by the Council. The fouryear period may be reduced to 30 months if the experience acquired is all postqualifying. In either case, a substantial proportion of the approved accounting experience must be in auditing and at least one year of such experience must be gained in Hong Kong within three years prior to the date of application. Note 1 : The overseas accountancy bodies of which the qualifications are currently recognised by HKSA are listed below. Members of these bodies seeking membership with HKSA are required to sit and pass the HKSA Aptitude Test: 1. Institute of Chartered Accountants in Australia [ICAA] 2. Institute of Chartered Accountants in England and Wales [ICAEW] (ICAEW members will be exempted from this Aptitude Test requirement with effect from 8 September 2004.) 3. Institute of Chartered Accountants in Ireland [ICAI] 4. Institute of Chartered Accountants of New Zealand [ICANZ] 5. Institute of Chartered Accountants of Scotland [ICAS] 6. Institute of Chartered Accountants of Zimbabwe [ICAZ] 7. South African Institute of Chartered Accountants [SAICA] 8. American Institute of Certified Public Accountants [AICPA] 9. Association of International Accountants [AIA] 10. Canadian Institute of Chartered Accountants [CICA] 11. Chartered Institute of Management Accountants [CIMA] 12. Chartered Institute of Public Finance and Accountancy [CIPFA] Under the provisions of the Mutual Recognition Agreements (MRA) signed between HKSA and the Association of Chartered Certified Accountants [ACCA] and CPA Australia [CPAA], current members of these two bodies are exempted from the Aptitude Test when they apply for HKSA membership. However, the MRA will be terminated on 30 June HKSA has written to ACCA and CPAA informing them that the HKSA will, subject to their consent, review their qualifications for mutual recognition purposes in accordance with a new evaluation process, which is based on the HKSA QP quality points. HKSA has also written to AICPA, AIA, CIMA and CIPFA notifying them of the termination of the existing recognition arrangements with effect from 30 June Subject to the consent of these bodies, HKSA will review their qualifications for mutual recognition purposes in accordance with the new evaluation process, which is based on the HKSA QP quality points. HKSA is also currently exploring with CICA arrangements for possible membership reciprocity

6 Note 2 : Approved accounting experience means experience gained in the office of: 1. an HKSA member holding a valid Practising Certificate issued by HKSA and practising full-time public accountancy; or 2. a person practising full-time public accountancy under the jurisdiction of an accountancy body accepted by the Council. In addition, the applicant shall satisfy the Council that: he is ordinarily resident in Hong Kong; and he has passed the examinations prescribed by Council which shall include local law and taxation. Only Practising Certificate holders are allowed to practise public accountancy in Hong Kong