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02 Mar 2011
CIMA'S DITCHING of its membership of the CCAB, the body that represents the UK institutes, is the latest in a long line of problems flagging up diverging interests within the profession.
The Consultative Committee of Accountancy Bodies should present the UK's profession as one. Unfortunately the CCAB, which is meant to represent a united front for the UK accounting profession, has too often highlighted its schisms.
In 2005 the CCAB was near collapse post-failed ICAEW/CIPFA merger. ICAS and the ICAEW had stored between themselves such bad blood that the CCAB seemed unlikely to continue, with then ICAEW chief Eric Anstee talking of "realigning" its funding of the body.
The issue was resolved, and the CCAB bodies held hands to stick up for changes to 'work in progress' accounting rules that threatened cashflow in firms.
The CCAB has also worked together around money laundering rules guidance (as opposed to 'how to launder money', of course), and tried to get the term "accountant" recognized in law - which failed.
And...that's about it, publicly anyway. The meetings between the chiefs and presidents of the institutes (ICAEW, ICAS, CIPFA, ACCA, ICAI and CIMA) remain under the radar.
To say that CIMA thinks the body has become irrelevant in general is perhaps a bit too far. But not by much. CIMA itself talks of the body's "diminishing relevance" to its members.
CIMA is pushing the global finance chief route. That's the most senior part of its membership, and to whom other members aspire. To justify its existence it believes that's where it must focus its lobbying power. The CCAB, it argues, is too focused on audit.
So does that make the CCAB irrelevant altogether??
Well CIMA's move certainly does it no favours, and it could be argued that the institutes get together on so few issues that it hardly seems worth it anyway.
Ironically the term 'CCAB' is well recognised within statute, so lawmakers will have to get out their correction fluid.
The only way for the institutes to truly have a single voice is through a single institute, and that seems farther away than ever.
The CCAB, or whatever it decides to call itself going forward, will no doubt speak up when it needs to.
But representing such a divergent audience, it seems as if the CCAB will always highlight differences in the profession rather than consensus. And as an accountant in business, practice or the thrid sector within those institutes, you're unlikely to get the sum being greater than its parts.
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CCAB
The CCAB does not represent ALL accountancy bodies. The Association of International Accountants is a registered body!
Posted by: Dr Frank Lefley, 02 Mar 2011 | 19:32
bad blood?
I have to say that as ICAS President in 2004/5 I saw little of the "bad blood" to which you refer.
Even taking into account the "name- pinching" nonsense around that time I enjoyed a very warm relationship with my ICAEW counterpart Paul Drucker (and my other four fellow Presidents) which remains to this day. I know from my successors that they have enjoyed similar experiences.
Maybe the lesson to be garnered is that the members seem to get on better together than the executive at times. We six certainly seemed to solve more over dinner than weeks of official meetings did!
The serious issue is however the one you identify - the weakening of the "one voice" for accounting in the UK, and the vital need to find ways of continuing to work together for the profession
Posted by: ian r, 03 Mar 2011 | 01:12
cima withdrawal from ccab
Its a valid move because they cannot participate in issues being discussed by other members in ccab who are audit oriented.It is morally not right to spend members money on something that dont bring benifit to members.
Some other members may also considering to withdraw if ccab focus on something not benifitting them.Identify who are the passengers in the CCAB and the possibility is there for them to withdraw from ccab.
Posted by: mohd noh jidin, 03 Mar 2011 | 10:31
CCAB
The UK Accounting profession will always suffer while it remains with so many different bodies. The CCAB should not exist because there is only the need for one body in the UK.
I believe each body have their strengths and weaknesses (this statement itself will offend some), but I have always believed there should be one UK body, but within it different streams/colleges that would then allow Accountants to take the same core exams but then specialise earlier as they qualify, similar to the ACCA concept but maybe much more specialised. If an accountant then wanted to move across specialisations they would further have to take that specialisation exams, so continually proving their adequacy for the new role. This would surely benefit both members and employers.
This would then allow all Accountants to be represented by the one body, the result I believe would be a much more valid case for the term "Accountant" to be protected in law and for those involved in Tax the increased likelihood of "legal privilege" being granted as well as other opportunities for the profession.
Perhaps its time for the government to intervene with some carrots for the profession as described above and force the issue of a "brand new body" replacing not just the CCAB but the ICAEW, ACCA, CIMA, CIPFA, ICAS and ICAI as well as some of the other smaller bodies. Those in the new body will get the privileges and recognition, those outside will not!
Posted by: Richard , 03 Mar 2011 | 18:50
A Mistake
Who cares if the flavour of the month is audit. Another month it would be accounting for pensions or the application of international standards. Whatever, the accounting profession is stronger if united. Battles are won on the battlefield, not by withdrawing from the field altogether. Get back in the fold please and sort out the differences.
ETSAHBACK (a CCAB qualified accountant working alongside respected CIMA colleagues)
Posted by: Etsahback, 04 Mar 2011 | 15:43
I believe
I believe, that CIMA has exited the CCAB, would make any difference to its significance and relevance to the accountancy profession because cost and management accountancy hardly has to go by the statutory rules and regulations. It's just pure mathematics and strategy
Posted by: A Nee K, 07 Mar 2011 | 08:49