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WHAT IS NEW IN THE NEW ICAN PROFESSIONAL SYLLABUS 2014? BY ABUBAKAR UMAR FAROUK, ACA LECTURER, DEPT OF ACCOUNTANCY, SCHOOL OF MANAGEMENT STUDIES KANO STATE POLYTECHNIC Slide 2 INTRODUCTION The Institute of Chartered Accountants of Nigeria (ICAN) commissioned experts from the Institute of Chartered Accountants of England and Wales (ICAEW) under a project supported by the World Bank to review its professional qualification. Slide 3 INTRODUCTION contd This is in line with its mandate as provided by the Parliament act No. 15 of 1965 The Act empowers the Institute, among others, to: Determine what standards of knowledge and skill are to be attained by persons seeking to become members of the accountancy profession; and To raise those standards from time to time as circumstances may permit. Slide 4 OBJECTIVES To regulate the profession of accountancy in Nigeria based on the dynamics of the time and in line with the prevailing International standards of the profession To synchronise ICAN examination syllabus with International Education Standards To provide befitting and subsidized learning materials to the Institutes teeming students Slide 5 OBJ contd To support tuition houses to enable them provide sound training To benchmark itself with the top eight accountancy professional bodies in the world Chartered Accountants Group of Eight (CAGE) Enhance delivery in an increasingly competitive environment Slide 6 THE NEW SYLLABUS The new syllabus is designed to produce Chartered Accountants equipped with the required expertise to deal with a wide range of complex and often unpredictable issues and situations not only in the Nigerian context but globally. It is designed in the form of learning content and competences The syllabus complied with the International Educational Standards and Guidelines issued by the International Federation of Accountants (IFAC) It is made up of three levels Slide 7 THE NEW LEVELS The foundation Level provides manageable core contents and competences The Skills Level emphasises on the application of the acquired knowledge in business situations by further developing and expanding the competences already achieved in the Foundation Level. The Professional Level is aimed at developing students ability and competence to make professional evaluations and judgements on complex business scenarios/situations Slide 8 THE REVIEW PROCESS Full curriculum based review of ICAN ACA Professional Qualification Benchmarking of ICAN syllabus with International comparators and IFAC IES requirements Stakeholders consultations and meetings with Employers Tuition houses Tertiary Educational Institutions ICAN Staff and Members Slide 9 THE REVIEW PROCESS contd Desk based review of syllabuses and examinations Workshops and conferences for Train the trainers Examinations setting workshop Education and Training Directorate workshop Slide 10 CHANGES Syllabus Examinations and assessment procedures Examination Structure and timing Learning materials Tuition provision Pathways to entry Slide 11 SYLLABUS Pre-2010 2010 2014 Levels 5 4 3 Subjects 19 15 16 Slide 12 LEVELS Levels are reduced from four to three Title of the levels changed to: Foundation Level, Skills Level and Professional Level Candidates can register for any number of subjects in any level but have to successfully complete a level before jumping to the next level Slide 13 Old Syllabus Structure: 4 Levels 15 Subjects FOUNDATION LEVEL INTERMEDIATE LEVEL PE I LEVELPE II LEVEL Fundamentals of Fin accting Costing & Q TInformation Technology Public Sector Accting & Fin Corporate & Biz Law TaxationManagement Accounting Fin Reporting & Ethics Economics & Biz Environment Audit & AssuranceFinancial Accounting Strategic Fin Mgt NILBiz Comm. & Res Methodology Advanced Audit & Assurance Advanced Taxation Slide 14 New Syllabus Structure: 3 Levels 16 Subjects FOUNDATION LEVELSKILLS LEVELPROFESSIONAL LEVEL QT in BusinessFin ReportingCorporate Reporting Fin AcctingAudit and AssuranceAdv Audit and Assurance Mgt InformationTaxationStrategic Fin Mgt Bus LawPerformance MgtAdv Taxation Bus and FinanceMgt, Gov and Ethics Case Study -PSA and Fin - Slide 15 Some Changes in the Syllabus Biz Comm & Res Methodology, Inf Tech and Economics dropped Mgt, gov & ethics introduced Taxation moved from Intermediate level to Skills level PSA & Fin moved from PE II to Skills level Ethics removed from FRE to Mgt Gov & Ethics Mgt Acct adjusted and renamed Performance Mgt Cost Acct merged with Inf Tech and named Mgt Inf QT moved from Intermediate level to Knowledge level and named QT in Biz Slide 16 SUBJECTS 1. DROPPED Economics and Business Environment Business Research and Methodology 2. INTRODUCED Business and Finance Management, Governance and Ethics Case Study 3. SUBMERGED Information Technology and Cost Accounting now Management Information Ethics taken from Financial Reporting and Ethics now added to Management and Governance Slide 17 SUBJECTS Contd 4. TITLES CHANGED Management Accounting now Performance Management Financial Reporting now Corporate Reporting 5. MOVED Public Sector Accounting and Finance from PEII (final level) to Skills (middle level) 6. INCORPORATED International Financial Reporting Standards (IFRS) International Public Sector Accounting Standards (IPSAS) Slide 18 SUBJECTS Contd 7. WEIGHTINGS Each Subject is subdivided into four parts under appropriate sub headings and percentage weighting is allocated for each part accordingly to assist students and tutors for a better preparation and allow for flexibility in setting questions by examiners 8. CREDIT HOURS Hours are not allocated per diet but per week in conformity with best practices and to ensure appropriate grading of ICAN certificate Slide 19 SOME NEW TOPICS Business Finance Basic models for business analysis Role of Accountancy Profession in Business and Society Management Information Impact of social media on organisations Business Law Role of an Accountant as an expert witness in computer fraud situations Slide 20 SOME NEW TOPICS Contd Taxation Transfer Pricing Tertiary Education Tax Financial Accounting, Financial Reporting, Corporate Reporting, Audit and assurance and Public Sector Accounting and Finance Applicable Standards Application of Information Technology Public Sector Audit Slide 21 EXAMINATIONS Examination structure Examination period Question Patterns Slide 22 Examination structure LEVELMULTIPLE CHOICESCENARIO /ESSAY BASED Foundation Yes Skills No Yes Professional No Yes Slide 23 Exam Structure: Foundation Level Two Sections Section A: Twenty Multiple Choice Questions to attempt all. One mark for each question (20 marks) Section B: Six Essay Questions to attempt four. 20 marks for each question (80 marks) Slide 24 Exam structure: Skills and Professional levels Three Sections Section A One compulsory Question 30 marks Section B Three Questions to attempt two. 20 marks for each question (40 marks) Section C Three Questions to attempt two. 15 marks for each question (30 marks) Slide 25 3 Day Examination Period DAYTIMEFOUNDATIO N LEVEL SKILLS LEVEL PROFESSION AL LEVEL Tuesday9.00am to12 noon 2.00 pm to 5.00 pm Financial Accounting Management Information Financial Reporting Taxation Corporate Reporting Advanced Taxation Wednesday9.00 am to 12 noon 2.00pm to 5.00pm Quantitative Techniques in Business Business and Finance Performance Management Audit and Assurance Strategic Financial Management Advanced Audit and Assurance Thursday9.00 am to 12 noon 2.00pm to 5.00pm Business Law - Management Governance and Ethics Public Sector Accounting Case Study (9.00am to 1.00pm) - Slide 26 Question Patterns Foundation Level Illustrative Exam Verbs Knowledge State= express clearly the details Define= give an exact meaning List= make a list Comprehension Explain= make clear or intelligible Describe= communicate key features Illustrate= use an example to explain describe something Distinguish= highlight the differences between two things Identify= recognise, establish or select after consideration Slide 27 Question Patterns cntd Skills Level Illustrative exam verbs Application Apply= show practical use Demonstrate= exhibit by practical means or prove with certainty Reconcile= show they are consistent/compatible Solve= identify an answer to something Calculate= ascertain mathematically Slide 28 Question Patterns cntd Analysis Prioritise= show in order of priority or sequence of action Compare and contrast= show similarities and/ or differences Discuss= use argument to examine in detail Interpret= describe in intelligible and familiar terms Slide 29 Question Patterns cntd Professional level illustrative exam verbs Analysis Analyse= examine the structure in detail Categorise= separate into defined divisions/ classes Construct= compile or build up Produce= create Evaluation Recommend= propose a course of action Evaluate= appraise or assess the value of Advise= inform, notify or counsel Slide 30 LEARNING MATERIALS Improvements Learning materials tailored to the syllabus; heading by heading Seamless transition from syllabus to learning materials to examinations No recommended texts Less emphasis on libraries Core components Study texts Two question banks; one for circulation to students and another separate tutorial question bank for tuition providers Past examination papers Pilot examination papers Mock examination Slide 31 TUITION PROVISION Policies Encourage consolidation among tuition providers for the formation of big and strong tuition houses Encourage full time training to ensure good coverage of the syllabus Grade tuition houses to encourage better service delivery and healthy competition Create synergy for ICAN, Tuition houses and firms Develop strong and very close relationship with tertiary institutions and regulatory bodies Slide 32 PATHWAYS TO ENTRY End of conversion course arrangement New exemption structure Transitional arrangements have been worked out All other exemptions are subject by subject Slide 33 Exem Exemption Structure S/NFOUNDAT ION SKILLSPROFESSI ONAL TOTAL 1ACCA,ICAEW,CPA45413 2CIMA UK45312 3MCA Institutions54009 4PhD Accounting55010 5BSc & MSc from accredited Inst 53008 6BSc/HND accredited Inst, ATSWA, ANAN, 52007 7Fed Treasury42006 Slide 34 Exemption Structure contd 8CITN41005 9ATS, CIBN, CISBN, ACSA 40004 10MSc BSc from related or no BSc, Inst of Insurance 30003 11BSc in related area20002 Slide 35 Transition Arrangement in Brief OLD SYLLABUS STATUSTO WRITE LEVELAFTER MAY 2014 KNOWLED GE LEVEL SKILLS APPLICATI ON LEVEL PROFESSIO NAL LEVEL TOTAL FoundationPassed26513 IntermediatePassed-459 PE IPassed-257 PE IIReferred-PSAF if not passed +1 Slide 36 Some Implications Case Study has now been added to all PE II referred students Mgt., Gov & Ethics is also added to PE I passed students PE II students with reference in PSAF will have to clear it at the Skills Level. Slide 37 CONCLUSION This presentation is organised by the Institute to ensure that all stakeholders have a good understanding of the new package which is aimed at further simplifying ICAN examinations, improving pass rate, maintaining high standard and quality and complying with the Accountancy profession International Standards and best practices. Slide 38 Thanks Thanking you for your attention!