2004 INTERNATIONAL FEDERATION
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1 INTERNATIONAL FEDERATION OF ACCOUNTANTS 545 Fifth Avenue, 14th Floor Tel: +1 (212) New York, New York Fax: +1 (212) Internet: Agenda Item 14-A GAE Overview GAE Research GAE Research into the Impact of Globalisation on Accountancy Education took place in the period at the European Institute for Advanced Studies in Management (EIASM), in cooperation with the International Association for Accounting Education and Research (IAAER), major professional bodies and international accountancy firms, the Education Committee of the International Federation of Accountants (IFAC) and international organisations, including the International Accounting Standards Board (IASB). The project resulted in the classification of accountancy education based on the analysis of professional qualification, education and training of 34 professional bodies in 25 countries. The research participants came from academic and professional institutes and together covered all relevant areas of expertise. The International Accounting Standards Committee Foundation (IASCF) published the research results. GAE Clear, reliable and up to date information about the qualification, professional education and practical training of accountants and auditors is necessary for professional applications and for comparative research. In 2002 IFAC published draft International Education Standards (IES), which will succeed the existing International Education Guidelines as mandatory requirements. As a result the available GAE country information will be rearranged in line with the IES benchmarks. In addition a continuous update of the information on the structure, content and recognition of accountancy education must be realised to cover new developments. GAE Benchmarking The Global Accountancy Education 2004 Benchmarking project is made possible by the United States Agency for International Development (USAID). As a result of the GAEB project a quantitative benchmarking methodology will become available that is transferable throughout the world, identifies gaps and measures improvements, facilitates global trading in accountancy services and is instrumental for setting the priorities that must be addressed to strengthen the accountancy profession in South East Europe and Eurasia. The present position of professional bodies and of their qualification, education and training requirements will be compared with IFAC Education Standards and Guidelines and with EU Directives. In a pilot project the benchmarking methodology will be used to identify gaps between present practice and international standards and to monitor country progress to sustainable development for countries in South East Europe and Eurasia whose economic development is supported by USAID. A comparison will be made with selected Northern Tier East Europe and European Union countries. CARANA Corporation is the contractor for the GAEB project and has final responsibility towards USAID as the principle sponsor. CARANA has formed an expert team for the GAEB project under the direction of CARANA and supervision of USAID. Page 1 of 5
2 GAE Core Activities May 2003 The GAE research activities as described above are part of the core activities that were defined in There general objective is to develop the GAE classification system over time and to promote professional and academic use of the results. The benchmarking project is a new initiative inside the GAE cluster of activities that is meant to support developing and transition countries in their move towards international compatible systems for the qualification, education and training of accountants and auditors. Page 2 of 5
3 GAE Core Activities May 2003 GAE Core Activities Professional qualification, education, training Knowledge creation and dissemination Academic Universities and experts International academic institutions Dissemination of results GAE EIASM Project GAE classification of accountancy education Database 34 professional bodies, 25 countries Overview of results IAAER Hong Kong 2002 Research publication, IASCF 2002 Professional Professional bodies Major accountancy firms International organisations Dissemination of results Continued cooperation with academic institutes and experts GAE GAE extension with Brazil, China, Senegal GAE update with standards and developments Review by participating institutes and experts Continued cooperation with professional institutes and experts Universities Programme development Research activities Related PhD s GAE Database GAE database content and structure EIASM web facilities for dissemination Academic and professional applications Profession Development of standards Benchmarks, assessment Stimulate development Programme evaluation, assessment and recommendations GAE Classification GAE classification review based on standards and country developments Scientific contribution (theory, models) Intermediate country updates Final classification IAAER Istanbul 2006 Development of benchmarks in line with international business requirements Universities Access to information Use for specific projects Programme development accountancy education Research and PhD s GAE Network Accountancy qualification, education, training Purpose knowledge creation and dissemination Academic and professional network partners Permanent information system, web facilities GAE Network Board responsible for operations Profession Access to information Use for specific projects Standards and benchmarks Professional development accountancy education Page 3 of 5
4 Recent Events GAE 2004 Survey The GAE classification and the country results are based on a worldwide analysis of accountancy education in 25 countries covering 34 professional bodies. The underlying data describe the situation in the period A short questionnaire was sent to the GAE education contacts to ask their opinion about the usefulness of the present material and about an update of the GAE material based on the actual situation in The intermediate results indicate that the GAE material is relevant, should be updated and more details are asked. It would help to have a database and web-access. In general respondents from developing and transition countries attach more importance to the GAE material than those from industrialised countries. EAA Annual Congress The 27 th Annual Congress of the European Accounting Association was held in Prague on 1 3 April Members of the GAE network participated in symposia on accountancy education. The subjects were: International Education Standards for Professional Accountants: New Aspects of Accounting Harmonisation, chaired by Mike Walsh; and Accountancy Education: Globalisation in relation to Diversity in Europe, chaired by Gert Karreman. GAE Network Board The GAE Network Board met in Prague during the EAA Congress. The IFAC Education Committee and the IAAER Executive Committee were informed about regular GAE progress and about cooperation with USAID and CARANA in the benchmarking project. The Board agreed to review its professional relevance and quality. As a result of the survey the Board agreed that it is worthwhile to continue with the GAE 2004 update. The results will be collected in a way that is compatible with the benchmarking project. GAE Benchmarking Project The GAEB Project Plan and Proposal was discussed with members of the resource team in Prague during the EAA Congress. The project effectively started in Prague. It is divided in three major stages: (1) design of the benchmarking instrument; (2) country assessment and comparison; and (3) general review and finalising of the methodology. In June 2004 professional bodies in South East Europe agreed to participate in the benchmarking project. The GAEB project plan includes development of a website under the GAE name and use of the KPMG Qubus database. The website can be linked to websites of relevant organisations like EIASM, IAAER, IFAC, IASB and UNCTAD. KPMG already agreed to host the database. The database and the website will also be used for general GAE activities. Globalisation Roundtable The International Association for Accounting Education and Research (IAAER) will organise an IAAER Globalisation Roundtable on Wednesday, June 30, 2004 in Durban, South Africa. The theme of the roundtable will be Implementing International Education Standards (IES): the Global Challenges. The roundtable will be held in cooperation with IFAC and the Southern African Accounting Association (SAAA). Page 4 of 5
5 GAE Contacts Global Accountancy Education Network Board Prof. Ian F. Y. Marrian, chairman, Institute of Chartered Accountants of Scotland, United Kingdom Gert H. Karreman, secretary and project director, The Netherlands Prof. C. Mark Allison, Institute of Chartered Accountants of Scotland, United Kingdom Prof. Alain J. M. Burlaud, Conservatoire National des Arts et Métiers, France Gerry van Dyck, European Institute for Advanced Studies in Management, Belgium Prof. Adolf J. Enthoven, University of Texas, USA Prof. Hans Kuijl, Leiden University, The Netherlands Prof. Belverd E. Needles Jr., DePaul University, USA Kurt Ramin, International Accounting Standards Committee Foundation, United Kingdom Hans Verkruijsse, Ernst & Young, The Netherlands Michael J. Walsh, Association of Chartered Certified Accountants, United Kingdom Liaison IFAC Education Committee: Mark Allison, Alain Burlaud, Hans Verkruijsse, Mike Walsh Liaison International Association for Accountancy Education and Research: Bel Needles, Mike Walsh Liaison Forum of Firms and Trans-national Auditor Committee: Hans Verkruijsse Database support: Edo van Santen, KPMG Qubus Competence Center, The Netherlands Global Accountancy Education Benchmarking Project USAID Supervisor: CARANA Contractor: Principle Investigator: A. David Meyer, J.D., M.B.A., Office of Economic Growth R. William Phelps, Executive Vice President Global Operations Dr. Gert H. Karreman, Consultant Global Accountancy Education Resource Team: Professor C. Mark Allison, Institute of Chartered Accountants of Scotland, United Kingdom Professor Alain J. M. Burlaud, Conservatoire National des Arts et Métiers, France Professor Ian F. Y. Marrian, Institute of Chartered Accountants of Scotland, United Kingdom Michael Walsh, Director, Association of Chartered Certified Accountants, United Kingdom Global Accountancy Education Contacts GAE project director: Dr. Gert H. Karreman Website: Secretariat: Department of Business Economics Leiden University Address: Post Box 9520, Leiden, The Netherlands Fax: CARANA contractor: R. William Phelps Website: Address: 4350 North Fairfax Drive, Suite 500 Arlington, VA 22203, USA Fax: Page 5 of 5
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