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FAQs on Mutual Recognition Agreement between ACCA and HKICPA
(date of issue: 22 August 2006)
Section 1 - General Matters
1.1 Why have ACCA and HKICPA signed a new MRA?
The new MRA enables accountants who have qualified with either HKICPA or ACCA to be a member of the other body, and enjoy the benefits which both organisations can offer. This new agreement recognises that our respective qualifications differ in learning objectives but not in quality and the routes to achieving membership are different. To recognise these differences, the new agreement contains the steps to be followed by ACCA and HKICPA members seeking membership in the other's body.
1.2 Is the new MRA applicable to me?
The new MRA applies to ACCA members who were registered as ACCA students in Hong Kong and the UK after 15 August 2004 - refer to Section 2. ACCA members who were registered as ACCA students on or before 15 August 2004 fall under the transitional arrangements - refer to Section 3.
ACCA MEMBERS APPLYING FOR HKICPA MEMBERSHIP
Section 2 - Students who registered with ACCA after 15 August 2004
2.1 Under this new MRA, who is eligible to apply for membership of HKICPA?
An applicant who is a member of ACCA applying for membership of HKICPA must have:
- an Accounting Degree or a Non-Accounting Degree accredited or recognised by HKICPA;
- passed the ACCA Professional Examination which must include:
- Paper 2.2 (HKG) - Corporate and Business Law ( Hong Kong );
- Paper 2.3 (HKG) - Business Taxation ( Hong Kong );
- Paper 3.1 - Audit and Assurance Services; and
- Paper 3.2 (HKG) - Advanced Taxation ( Hong Kong );
- Paper 2.2 (HKG) - Corporate and Business Law ( Hong Kong );
- completed and passed the workshops of any one of the four modules of the HK QP;
- passed the Final Professional Examination of the HK QP, and
- satisfied HKICPA that he has at least three-years' practical experience in accountancy which has been gained under an Authorised Employer or Authorised Supervisor complying with the HK Practical Experience Requirement;
- Registered as an ACCA student in Hong Kong or the UK.
2.2 What is the difference in the arrangement for ACCA students who registered on or before 15 August 2004 and those who registered after this date?
Students who registered on or before 15 August 2004 , fall under the transitional arrangements of the 2000 MRA - refer to Section 3.
2.3 What does "Accounting Degree" and "Non-Accounting Degree" mean?
"Accounting Degree" means a university degree in accountancy accredited or recognised by HKICPA for registration as a student of HKICPA.
"Non-Accounting Degree" means a university degree (other than an Accounting Degree) accredited or recognised by HKICPA for the purpose of its Conversion Programme for non-Accounting Degree holders who wish to register as a student of HKICPA.
2.4 Under the new MRA, will the new ACCA Qualification, which will commence in December 2007, have any impact on the application to HKICPA membership?
ACCA and HKICPA are both committed to ensuring that their professional programmes and qualifying processes are, and will continue to be, acceptable to the other body for the purpose of the MRA.
2.5 I registered as an ACCA student this year outside Hong Kong. Am I covered by the new MRA?
No. The MRA applies to ACCA students registered in Hong Kong or the UK only.
2.6 If I have been awarded exemption(s) from any paper of the ACCA Professional Examination, am I eligible to apply for HKICPA membership under the new MRA?
Yes. Any applicant who has been exempted by ACCA from sitting any of the 14 papers of the ACCA Professional Examination shall be subject to competency assessment by HKICPA on a case-by-case basis for the purpose of determining whether HKICPA's full competency requirements have been satisfied.
2.7 If HKICPA has accredited my degree, do I need to go through the competency assessment and pay the fees?
Yes. HKICPA requires the assessment of all applicants' university transcripts, and may sometimes impose conditions on mandatory subjects that a graduate of an accredited degree must complete.
2.8 If I have been awarded exemption(s) on ACCA Papers 2.2 (HKG) and/or 2.3 (HKG), do I need to take the HK Aptitude Tests in order to apply for HKICPA membership under the new MRA?
HKICPA will carry out a competency assessment for students with exemption - refer to 2.6. If HKICPA do not recognise the exempting qualification, students will have to either successfully complete the ACCA paper for which they were exempted or the relevant subjects of programmes of, or accredited by, HKICPA.
2.9 If I did not pass ACCA Paper 3.1, am I eligible to apply for HKICPA membership under the new MRA?
The MRA requires that all applicants have successfully completed Paper 3.1. Members will have the option to attempt this paper with ACCA in addition to the option papers they have previously sat.
Alternatively members could complete and pass the corresponding HKICPA QP Module C (Auditing and Information Management) workshop and exam.
2.10 If I did not pass ACCA Paper 3.2 (HKG), am I eligible to apply for HKICPA membership under the new MRA?
The MRA requires that all applicants have successfully completed Paper 3.2 (HKG). Members will have the option to attempt this paper with ACCA in addition to the option papers they have previously sat. Alternatively, members can complete and pass the workshop of Module D (Taxation) of the HKICPA QP, the FPE and the Aptitude Test for HK Taxation.
2.11 What are the practical experience requirements to apply for HKICPA membership?
An applicant must satisfy HKICPA that he has at least 3 years of practical experience in accountancy which has been gained under an Authorised Employer or Authorised Supervisor complying with the HK Practical Experience Requirement. For full details of the practical experience requirements, please visit HKICPA's website at the following address: www.hkicpa.org.hk
2.12 When can I start taking HKICPA's module workshops?
Students of ACCA are not eligible to enroll for the module workshops.
Members and Affiliates of ACCA, who hold an Accounting Degree or a Non-Accounting Degree, are eligible to enrol for a module workshop.
2.13 Will completion of the module workshop count towards my CPD requirements for ACCA membership?
Yes. ACCA members will be entitled to the award of 13 CPD units for attending the module workshop and an additional three CPD units for completing the module workshop.
2.14 When can I start taking HKICPA's Final Professional Examination?
Students of ACCA are not eligible to take the Final Professional Examination.
Members of ACCA who have completed and passed a module workshop are eligible to take the Final Professional Examination.
ACCA Affiliates who have completed and passed a module workshop are eligible to take the Final Professional Examination, providing that they do not sit the Final Professional Examination at any time prior to the expiry of the later of:
- 24 months from the date when they have been granted an Accounting Degree or a Non-Accounting Degree; and
- 24 months from the date when they commenced training for the purpose of gaining practical experience in accountancy under an Authorised Employer or Authorised Supervisor complying with the HK Practical Experience Requirement.
2.15 Do I need to register as a student of HKICPA before attempting the workshop of a QP module or the Final Professional Examination?
Yes.
Section 3 - Students who registered with ACCA on or before 15 August 2004
3.1 Has the new MRA changed my options?
No. The new MRA incorporates the transitional rules agreed for students registered on or before 15 August 2004 , which are identical to those agreed as part of the old MRA, and which are detailed below:
Transitional arrangements
The provisions of the 2000 MRA will continue to apply to members of ACCA applying for membership of the HKICPA only if:
- the applicant was registered as a student of ACCA on or before 15 August 2004 and has completed and passed the ACCA Professional Examination before the following relevant dates:
- in relation to members of ACCA who as at 15 August 2004 were holders of an Accounting Degree, 30 June 2007 ;
- in relation to members of ACCA who as at 15 August 2004 were holders of a Non-Accounting Degree and who did not at that date hold an Accounting Degree, 30 June 2008 ; and
- in relation to members of ACCA who as at 15 August 2004 did not hold either an Accounting Degree or a Non-Accounting Degree, 30 June 2009 ; and
- in relation to members of ACCA who as at 15 August 2004 were holders of an Accounting Degree, 30 June 2007 ;
- The applicant has completed the HK Practical Experience Requirement provided that:
- if the application for membership of HKICPA is made before 1 January 2008, the practical experience gained on or after 1 July 2005 must have been gained under an Authorised Employer or Authorised Supervisor; and
- if the applicant applies for membership of HKICPA on or after 1 January 2008, the practical experience must have been gained under an Authorised Employer or Authorised Supervisor for the full Period (three to five years as may be required) of the HK Practical Experience Requirement.
- if the application for membership of HKICPA is made before 1 January 2008, the practical experience gained on or after 1 July 2005 must have been gained under an Authorised Employer or Authorised Supervisor; and
3.2 If I fail to complete and pass the ACCA Professional Examination before the relevant dates, am I eligible to apply for HKICPA membership?
Yes, but you will be required to apply under the terms of the new MRA - refer to Section 2.
3.3 If I complete and pass the ACCA Professional Examination before the relevant dates, am I required to pass the HK Aptitude Tests in order to apply for membership of HKICPA?
No, you will not be required to complete the HK Aptitude Tests.
3.4 I did not hold any degree before 15 August 2004 but obtained a degree for further exemptions from the ACCA Professional Examination afterwards. Will the due date for completing my ACCA Professional Examination (i.e. 30 June 2009 ) be changed?
No, the due date will remain the same.
HKICPA MEMBERS APPLYING FOR ACCA MEMBERSHIP
Section 4
4.1 Under the new MRA, who is eligible to apply for membership of ACCA?
HKICPA members applying for ACCA membership must meet the following criteria:
- Qualified through the HKICPA's QP
- Registered as an HKICPA student in Hong Kong
- Are an HKICPA member in good standing
- Fulfill the standard membership application requirements of ACCA (e.g. fit and proper, not subject to any adverse disciplinary findings or pending complaints or investigations).
4.2 Will there be any difference for me in applying for ACCA membership if I fully complete HKICPA's QP before or after 1 July 2005?
No.
4.3 I am a HKICPA QP student in Mainland China, does the new MRA apply to me?
No, the new MRA applies only to HKICPA members who were registered as a student in Hong Kong.
4.4 What are the practical experience requirements to apply for ACCA membership?
An HKICPA member is required to have at least three-years' practical experience in accountancy which has been gained under an Authorised Employer or Authorised Supervisor complying with the HK Practical Experience Requirement.
4.5 When can I apply for ACCA membership?
Once you have become an HKICPA member, you are entitled to apply for ACCA membership.
4.6 Will I have the right to practice or conduct statutory audit in the UK once I have become an ACCA member under the MRA?
No, the MRA relates to ACCA membership only.
SUPPLEMENT - FOR MEMBERS QUALIFYING WITH ACCA UNDER THE NEW ACCA QUALIFICATION COMMENCED IN DECEMBER 2007
(updated in September 2008)
Section 5
5.1 Does the commencement of the new ACCA Qualification in December 2007 have any impact on the application requirements to HKICPA membership?
All the existing terms of the MRA signed in August 2006 remain unchanged (see sections 2 and 3). As the ACCA paper on advanced financial management has now become an option paper, P4 at Professional Level, ACCA members qualifying under the new ACCA Qualification are required to pass the following papers in order to qualify for the exemptions from HKICPA’s Qualification Programme (QP):
| New ACCA Qualification | Old ACCA Qualification equivalent | HKICPA alternative |
|---|---|---|
| F4 (HKG) - Corporate and Business Law (Hong Kong) | Paper 2.2 (HKG) - Corporate and Business Law ( Hong Kong ) | N/A |
| F6 (HKG) - Taxation (Hong Kong) | Paper 2.3 (HKG) - Business Taxation ( Hong Kong ) | N/A |
| P4 - Advanced Financial Management | Paper 3.7 Strategic Financial Management | Module B (Financial Management) workshop and examination. |
| P6 (HKG) - Advanced Taxation (Hong Kong) | Paper 3.2 (HKG) - Advanced Taxation (Hong Kong) | Module D (Taxation) workshop ONLY and the Aptitude Test for HK Taxation. |
| P7 - Advanced Audit and Assurance | Paper 3.1 - Audit and Assurance Services | Module C (Auditing and Information Management) workshop and examination. |
ACCA members may fulfil the requirements through any combination of new and old ACCA Qualification papers, and the HKICPA alternatives.
ACCA students who have yet to complete their two option papers are advised to choose P4 and P7 at the Professional Level as the most direct route to mutual recognition.
5.2 If I do not choose to attempt or did not pass ACCA Paper P6 Advanced Taxation (HKG), am I eligible to apply for HKICPA membership under the MRA?
The MRA requires that all applicants have successfully completed Paper 3.2 (HKG) or P6 (HKG) or the HKICPA alternative. Members will have the option to attempt this paper with ACCA in addition to the option papers they have previously sat. Alternatively, members can complete and pass the workshop of Module D (Taxation) of the HKICPA’s QP, and the Aptitude Test for HK Taxation.
5.3 If I have already passed Paper 3.2 (HKG) or P6(HKG) as one of my two option papers, which option papers in the new ACCA Qualification should I pass in order to be eligible to apply for HKICPA membership?
Both P4 Advanced Financial Management and P7 Advanced Audit and Assurance at the Professional Level of ACCA Qualification. Members have the option to attempt these option papers with ACCA in addition to the option papers they have previously sat.
5.4 If I had passed Paper 3.7 Strategic Financial Management, but had chosen to obtain the credit for P1 during the conversion to the new Qualification, do I need to attempt P4 in the new ACCA Qualification under the MRA?
No. Your choice of conversion between the old and new ACCA Qualification does not affect your eligibility. What matters is which examination you actually passed.