Institute of Financial Accountants

Transcription

1 ., 51'.1916 Institute of Financial Accountants Ḃurford house, 44 London Road, Sevenoaks, Kent, TN13 1AS Telephone enquiries: +44 (0) Fax: +44 (0) org. uk

2 An Introduction to the Institute of Financial Accountants Formed in 1916, the Institute of Financial Accountants (IFA)was one of the first professional bodies for accountants in the United Kingdom. The IFA qualification of 'Incorporated Financial Accountant' provides anyone working as a professional accountant, particularly in new and expanding small and medium sized enterprises, with access to a reliable and well-recognised professional body. Membership is equally appropriate to both the employed and the self-employed accountant. Since incorporation in 1816 the Institute has been offering professional accountancy examinations and membership around the world in addition to the United Kingdom, and now has members and students in over eighty countries. As examinations were only in English until 1997, most members and students were based in English speaking countries. However. recognising the needs of accountants in new and developing economies, the Institute diversified and today IFA exams are held in several languages including Russian and Chinese, making the IFAa truly 'international' organisation. In addition to conducting its own examinations, the Institute also sets technical and ethical standards to which members must adhere. The Institute recognises there are many ways of acquiring knowledge arid achieving competence, which is demonstrated by three flexible routes to membership: ill By examination ill By exemption ill By accreditation of prior learning. Additionally, the Institute recognises the fact that not everyone has the same requirements from professional associations and therefore offers three levels of membership. This flexibility enables everyone to gain a professional accountancy qualification at a level appropriate to his or her need: ill Financial Technician (AFT) l1liassociate (AFA) ill Fellow (FFA) Detailed explanations of each route to membership and an explanation of grades are contained in this brochure. IFAAssociates who have achieved membership through examination may be eligible to go on to the third year of a UK bachelors honours degree programme in accounting. Associates who successfully complete their degree may apply to become IFA Fellows subject to meeting the senlor accountancy experience requirement. IFA2 Institute of Financ,al A.ceou"'an!.

3 Benefits of Membership Membership of a professional accountancy body, recognised for its examination structure, standards and regulatory system. brings major benefits, improved professional status and enhanced career prospects. All members are expected to carry out their work within the guidelines of the Institute's Code of Best Practice and Framework for Regulation, and are expected to improve and maintain their professional knowledge and skills through lifelong learning. The Institute encourages members to engage in Continuing Professional Development (CPDJ, appropriate to their needs. Benefits of IFAMembership:.. The status conferred by the designatory letters (AFT,AFA, FFA).. Use of the title 'Incorporated Financial Accountant' by Associates and Fellows... Free access to an advisory technical panel, dealing with-all aspects of accountancy and taxation problems. l1lithe 'Financial Accountant' magazine, assisting members to keep up-to-date with legislation and developments within the accountancy profession... Networking and CPO opportunities. ill Free Tax Data Card ill Free Annual Pocket Diary.. Accounts prepared by IFAmembers are accepted by major banks and lending sources... Tax Relief on IFAAnnual Subscription (UKonly). An important additional benefit is the preferential rates on a range of membership services including: IIIProfessional Indemnity Insurance... Office and Household contents insurance.. An IFAAffinity Credit Card with preferential rates. IIIPrivate medical and hospital care. II1IIPersonal loans.. ifa 3 insutuie of Financia' Accountants

4 Levels of Membership. FINANCIAL ACCOUNTING TECHNICIAN Technician - 'One who works on accounting processes at a level above the merely clerical but below the level of operation of a fully qualified accountant. Thus an accounting technician might prepare the draft final accounts of a business but an accountant would be needed to complete these and to interpret them'. Derek French Dictionary of Accounting and Finance, Pitman Publishing2nd Edition The Financial Accounting Technician has an important role to play, either in providing support to the professional [where they undertake sub-professional work in the field of financial management) or by taking the role of accountant in a small organisation, where an outsourced professional accountant provides the service of supervision and monitoring. The IFA offers this technician grade qualification to individuals who for whatever reason, are unable to continue or do not wish to continue with their studies. Others continue in their studies with the aim of progressing to become IFAAssociates. A Financial Accounting Technician may use the designatory letters AFr and the title 'Incorporated Financial Accounting Technician'.. ASSOCIATE MEMBERSHIP This is the first level of professional membership, offered to individuals who have not yet completed the full IFA examination structure or who do not yet possess the relevant professional work experience required for the IFA Fellow grade. Associates of the Institute of Financial Accountants have the level of competency considered necessary to complete the final accounts of a business. They have the ability to interpret accounts, which will assist in the day-to-day management decisions vital to the success of businesses. An Associate Member may use the designatory letters AFA and the title 'Incorporated Financial Accountant'.. FELLOW MEMBERSHIP This is the final level of the IFA qualification and demonstrates competence in all aspects of financial management and in addition, strategic management. Applicants for Fellow membership must have completed the full examination syllabus, or hold equivalent qualifications, and have a minimum of three years experience in a senior accountancy capacity. Fellow members may use the designatory letters FFA and the title 'Incorporated Financial Accountant'.. HONOURS DEGREE IN ACCOUNTANCY Associates may be eligible to enter the final year of some honours degree programmes and current information may be found on the IFA website Iwww.ifa.org.ukl. ifa4 Institute of Financial Acwunlants

5 I The Role of a FinancialAccountant A Financial Accountant is responsible for the financial management of a business as well as advising and contributing to the strategic direction and administration of that business. Accountants extract and interpret information from the financial records for a wide range of interested parties throughout that organisation - shareholders, potential investors, bankers, employees, trade creditors and government departments.the demand for Financial Accountants in many types of businesses, large and small as well as in the public sector, continues to increase as career opportunities grow... THE WORK The Financial Accountant is responsible for controlling the working capital of a business, ensuring debtors, creditors and stocks are maintained at an acceptable level, taking day-to-day decisions, giving advice to the Board of Directors [very often the Financial Accountant is a Director of the company) and advising on capital investment. Accountants need management skills as well as knowledge of the general economic environment in which they operate. They need to keep themselves up-to-date with the regular changes in financial rules and regulations and have the ability to quickly recognise the implications of such changes on their employers' or clients' affairs. Financial Accountants are also responsible for the preparation of: l1liregular management accounts. l1libudgets. III Reports on variance between actual performance and budget performance. The Financial Accountant has to recommend any remedial action. IIIInterpretation of Financial Information - advising on trends.. THE WORK ENVIRONMENT Financial Accountants may be employed in any size of organisation or working environment in an accounting field, and usually specialise in financial management. They may also work in a smaller company where they will be involved in all aspects of business management.. PERSONAL CHARACTERISTICS Accountants must enjoy working in a numerate environment and have a good working knowledge of accounting information. They should have an inquiring, analytical mind and be able to work logically, consistently and accurately even under pressure. They need to be self-motivated individuals with the ability to manage their time efficiently. Accountants work with people from all walks of life and therefore effective interpersonal skills are essential. They should be confident individuals with the ability to put people at their ease and inspire confidence. They should also have excellent written and spoken communicationskills and be able to discuss and explain financial issues with both fellow professionals and those with little or no financial background.. PAYAND CONDITIONS Remuneration for Financial Accountants varies greatly, as the size of a company or organisation and its location affect salaries at all levels.,,' ':new,", Accountants

6 Examination Route to Membership The structure of the Institute's examination syllabus ensures that on qualifying, students have acquired the underpinning knowledge and competence in the following key elements: II1IITo collect, process and produce financial information to meet internal needs and external requirements. II To analyse and appraise financial and related information. II1II To assist and advise clients or management to set business objectives, plan, review and evaluate information on business performance. The syllabus is divided into three levels. Examinations are intended to be progressive at each level.. FINANCIAL ACCOUNTING TECHNICIAN This initial level introduces students to basic financial concepts, business law and taxation. It concentrates on the theory and techniques that form the platform for developing professional competence at later stages.. ASSOCIATE The Associate level syllabus continues the introduction of subject areas to develop students' analytical skills by consolidating knowledge of current principles, practice and techniques with problems and situations that they will meet at work.. FELLOW At Fellow level students are required to demonstrate that they can draw upon the range of knowledge, skills, techniques and technical awareness previously tested, and that they are able to integrate and apply these effectively and creatively in a strategic managerial context.. IFA EXAMINATION SYLLABUS II1IITechnician Level II1IIT1 - Financial Accounting Fundamentals II1IIT2 - Management Accounting Fundamentals III!IT3 - Personal and Business Taxation III!IT4 - Law for Accountants II1IIAssociate Level II A 1 - Financial Accounting II A2 - ManagementAccounting III A3 - Financial Management II A4 - Audit Techniques' II A5 - Information Systems II1II AS - Managementand Marketing II1II Fellow Level II F1 - Accounting Theory and Practice II! F2 - Management Accounting Control Systems III F3 - Financial Reporting and the Regulatory Framework l1li F4 - Corporate Strategy ifa6 'nstitute of Financial Accountants

7 ~... ENTRY REQUIREMENTS AND REGISTRATION The following alternative qualifications will be accepted for admission to the Technician Level:.4 GCSEs including English Language and a quantitative subject plus one A Level or Scottish Higher in an academic subject.. NVQ3 in Accounting. Advanced VCE/GNVQ in Business. BTEC National Certificate/Diploma in Business and Finance. SCOTVEC National Certificate in Business and Finance.. lab Level 3 Diploma in Accounting and Advanced Book-keeping. The above qualifications are only examples and are not intended to be an exhaustive list. If you do not have any of the above, but consider that you have qualifications equivalent to these you are encouraged to make an enquiry. Students over the age of 21 with at least 4 years relevant experience will be exempt from the above entry requirements. A student must have passed. or been exempted from. the Technician Level before proceeding to the professional levels of Associate or Fellowship. A good command of the English Language is required to complete the course successfully (except where examinations are offered in the local language). You are advised to check your eligibility for registration and/or exemption before enrolling on a course. An examination entry form will be sent to you with the letter confirming your registration as a student. Subsequent examination entry forms will be attached to the examination results. If necessary. you can ask for additional forms from the Institute. You may enter for the examinations only if:. You are a registered student.. Your student subscription or membership subscription is current and up-to-date. If you require further information on the Institute's examination syllabus. please refer to the website or contact the Education Department at Burford House for a copy., :~ 'l~ Accreditation of Prior Learning Route to Membership Prior learning assessment and recognition of prior learning are processes that have been used in training and development in both the USA and Australia for a number of years. In the UK accreditation of prior learning has now become an acceptable process for assessing a person's skills and knowledge within the occupational context. The Institute of Financial Accountants is the first body of accountants to use this method of assessing the competence of its applicants for Associate membership. 'APL is defined as an assessment process crediting competencies which have been demonstrated in the past, providing the practice is current, relevant and is written in the appropriate context to meet the criteria of a set standard of competencies the candidate is seeking to achieve'. Institute of Management. Professional Manager - March IFA 7 Institute of Financial Accountants

8 I I,. THE APL PROCESS II There are four stages II Identifying II Equating II Assessing II Accreditation in the process: The APL candidate must identify what he or she does as an accountant, and by completing a straightforward skills checklist, produce a profile identifying relevant skills, knowledge and understanding. An evaluation is made against the learning objectives derived from the IFA examination syllabus. The assessment is completed in the workplace and the candidate prepares evidence to demonstrate competence in relation to the learning objectives. Verification of the evidence by the relevant employer or, if self-employed, by a professional peer, is an essential requirement of the scheme. Accreditation is the outcome of a successful objective judgement of evidence provided by the candidate, Following accreditation the candidate is entitled to apply for Associate Membership of the Institute of Financial Accountants [AFA], Every APL candidate should be aware that the Institute may as part of the quality control procedures, appoint an Assessor to visit the workplace before or after admittance to professional membership, and review evidence of the skills and knowledge claimed. The assessor must be satisfied that the evidence is: II Relevant - appropriate to the vocational area and competence[s]. II Sufficient - enough to leave the assessor with no doubt of competence. [Quality of evidence is required not quantity]. II Current - that the evidence provided [past or present] supports the competence[s] that are being claimed. II Authentic - the candidate/member should be prepared for questioning. Exemption Route to Membership Holders of relevant qualifications from recognised professional accountancy bodies and education institutions may be eligible for exemption from some or all of the Institute's examinations. As a general guide, the holders of the qualifications below will be granted exemptions from the IFA examinations at the following levels: IFA Level Qualification Technician II HNC Business & Finance [with the relevant 'pathway'], II ACCA CAT or Part 1. II1IICIMA FoundationLevelor CIMA Certificate in Business Accountinq. Associate II1II HND in Business and Finance[must include achievement of a Merit grade in each of the three units entitled Management Accounting, Financial Systems & Auditing and Financial ReportingJ. II Business Degree awarded by a recognised University [including appropriate Financial & Management Accounting modules awarded by a recognised university]. II CIMA Intermediate or Managerial Levei. l1li ACCAPart 2, l1li S/NVQLevel4 in Accounting [must include achievement of specific option units] Fellow l1li Honours Degree in Accounting awarded by a recognised university. II CIMA Final or Strategic Level. l1liacca Part 3. This is only an indicative list and is therefore not exhaustive. The IFA Head Office maintains a database of qualifications for which exemptions are granted. If you do not have any of the above, but consider that you have qualifications equivalent to these you are encouraged to make an enquiry.. APPLYING FOR EXEMPTIONS Individual applicants are 'requested to submit a completed resume that includes an attested transcript of their results.. ENQUIRIES FROM EDUCATION INSTITUTIONS Education Institutions wishing to add value to their accounting programmes may apply to have these assessed for IFA subject exemption purposes. Enquiries should be made to the IFA Head Office leducation@ifa.org.ukl attaching details of the syllabus and assessment arrangements of the course /qualification for which exemptions are being requested. IFA8 Institute Flnc,nclal Accounlants