Will CIMA and AICPA's courtship bear fruit?

Interesting but impractical.

The AICPA is an umbrella Institute that does not represent all CPAs and includes non voting members who are non CPAs.

The CPA exams are unified in the USA but each State has its own rules for CPA membership. To practice as a CPA in any State one needs the permission of the State not the AICPA. Many CPAs are not members of the AICPA since membership is optional.

The CIMAs on the other hand require the permission of their Insitute where ever they may be practising in the world. Their Institute, unlike the AICPA, has the mandate to represent all UK Chartered Management Accountants.

America already has its own Institute of Management Accountants which I believe, quite nicely satisfies any MA vacuum left by the CPA exams.

Why would any American Accountant want to obtain an international qualification in Management Accounting? Most CPAs already have Bachelor degrees (often in Finance and Accounting) as well as MBAs. They tend to be well prepared for the challenges met in management accounting. The international success of American firms is clear evidence.

American universities have finetuned their MBA syllabii to levels beyond the course work required for the CIMA membership.

I am hoping that this proposed cooperation is not merely an attempt to increase membership income/revenue streams to be shared by the British and American Associations involved. We surely do not require a Charter from the Crown. It would be a retrograde step indeed.

We could invite the CIMAs to become CPAs but that would require knowledge of US tax and business laws as well as US GAAP.

Posted by: Hayden T Joseph, 19 Mar 2011 | 02:24

Profession?

It's difficult to keep track of all the organisations that purport to represent the profession at international level. Many more than those at national level. And big firms naturally like autonomy.

However a profusion of interests suggests that effectiveness for the profession is an early casualty.

It's understandable that CIMA want to ally with one of the US professional organisations. But can't they stay and help fix what's broken?

Posted by: slightly optimistic, 21 Mar 2011 | 12:05

In competition with ACCA

I think this strategic alliance between AICPA and CIMA comes out as a result of the launch of Uniform CPA examinations worldwide. AICPA has changed its path moving away from a local based institute offering qualification for CPAs in public practice into a global accounting institute covering both CPAs in public practice and management accountant in conglomerates (something like ACCA does for decades).

If this alliance works, then it will be in direct competition with ACCA.

Posted by: George Lee, 22 Mar 2011 | 09:47

In competition with ACCA

I think this strategic alliance between AICPA and CIMA comes out as a result of the launch of Uniform CPA examinations worldwide. AICPA has changed its path moving away from a local based institute offering qualification for CPAs in public practice into a global accounting institute covering both CPAs in public practice and management accountant in conglomerates (something like ACCA does for decades).

If this alliance works, then it will be in direct competition with ACCA.

Posted by: George Lee, 22 Mar 2011 | 09:49

You forgot to mention the IMA

I hope this was not an intententional oversight. But the IMA is a GLOBAL organization with over 60,000 members worldwide and with 34,000 CMA certificates issued worldwide since its inception almost 40 years ago, the CMA and the IMA are the Global Gold Standard.for Management Accountants.

Posted by: Art Pann, 22 Mar 2011 | 13:24

It is too late.

Both the AICPA and CIMA have endorsed the value for all accountants working in the field of managment accountancy. It is a key profession.

What is remarkable for the AICPA and its endorsement is that the Institute of Managment Accountants already has a professional qualification - a Certified Management Accountant, the CMA. Have they not now made the CMA the relative equivalent for those outside of auditng. I must assume that all CMA's are gratefull for this endorsement of a qualification that was first granted in 1972.

Posted by: Clifford Moggs, FCMA, CMA retired., 22 Mar 2011 | 20:00

CIMA & AICPA strategic alliance eat into ACCA territories

AICPA & CIMA strategic alliance will eat into the ACCA territories, especially middle east countries.

AICPA - U.S. CPA Exam to Be Administered Outside the U.S. for the First Time

The CPA Examination next year will be offered in Japan, Bahrain, Kuwait, Lebanon and the United Arab Emirates.

The Uniform CPA Examination will be offered outside the 55 U.S. jurisdictions for the first time in its history in 2011.

http://www.aicpa.org/Press/PressReleases/2010/pages/uscpaexamforthefirsttime.aspx

ACCA recruits head of Middle East

ACCA HAS RECRUITED Stuart Dunlop as head of its Middle East division.

The institute created a Middle East office in 2004, with staff based in Dubai and Oman

He succeeds Stephen Shields who was promoted to global director of employers and relationship managers. He will continue to be based in Dubai.

http://www.accountancyage.com/aa/news/1939672/acca-recruits-head-middle-east#ixzz1HPiQ8Vgb

Posted by: George Lee, 23 Mar 2011 | 09:43

CIMA is proactive than ACCA

CIMA is proactive to tie up with American CPA since European companies will be forced to use US GAAP and accounting rules following the merger of the iconic New York Stock Exchange with Germany’s Deutsche Boerse AG. US GAAP or accounting rules is more superior in public disclosures according to Mayor Michael Bloomberg.

http://uk.reuters.com/article/2011/02/11/business-us-exchanges-bloomberg-idUKTRE71A5O020110211?rpc=401&feedType=RSS&feedName=americasDealsNews&rpc=401

Posted by: George Lee, 31 Mar 2011 | 09:13

Accounting is a language of business (AICPA & CIMA or NYSE & Deutsche Exchange)

In CIMA’s press release and FAQs it says “This is not a merger. This is a joint venture which makes more sense right now strategically. Both bodies intend to work together to leverage the best strengths of each organisation and, if the joint venture works, we may consider a merger in the future.”

Both CIMA and AICPA won’t rule out the possibility of merger. If New York Stock Exchange in North America can amalgamated with German Exchange in Europe, then why accounting associations across the Atlantic can’t merge into a super accounting body?

Posted by: George Lee, 01 Apr 2011 | 09:43

Why AICPA team up with CIMA for international expansion?

Consider a simple example. Assume that a Japanese business school graduate applies for an accounting position with a U.S. firm's Japan office. The management of the firm may want assurance that the applicant understands both U.S. and Japanese accounting standards. Furthermore, management may want to know whether the accounting graduate has a working knowledge of English. An effective way to prove this competence is for the candidate to pass the U.S. CPA exam.

Many Japanese companies doing business with U.S. companies also want accounting graduates with knowledge of U.S. accounting standards. In addition, companies from other nations doing business in Japan seek Japanese accounting graduates that understand U.S. accounting standards. Despite their interest in the CPA exam, accounting graduates in Japan and other foreign countries rarely wish to practice in the U.S. In fact, they are generally not concerned with receiving a permit or license so it’s rational to provide add-on management accounting qualification (via joint venture with CIMA) to US CPAs.

The U.S. CPA has the opportunity to become the accepted global accounting designation. If the U.S. accounting profession fails to capitalize on the demand for a globally recognized accounting certification, others will seize the opportunity.

Posted by: George Lee, 05 Apr 2011 | 09:18