members updates - Confederation of Asian and Pacific Accountants

FROM THE WORLD OF ACCOUNTANCY
November 20, 2005 – At the Confederation of Asian and Pacific
Accountants (CAPA) 66th Executive Committee meeting in
Seoul, Mr. Shozo Yamazaki took over the CAPA President
position from Robin Hamilton Harding. The Executive
Committee then elected Kamlesh Vikamsey as the incoming
Deputy President. The term of office for the new CAPA leaders
are from 10 November 2005 to October 2007.
Robin Hamilton Harding putting on the “CAPA Badge of Office” for Shozo Yamazaki
Shozo Yamazaki is currently the Deputy President of the Japanese
Institute of Certified Public Accountants. His intensive and
active involvement in international activities includes being a
member of the Nominating Committee of the International
Federation of Accountants (IFAC). Among his past international
representation includes being a Board member of IFAC and the
CAPA EXECUTIVE COMMITTEE MEETING IN SEOUL
The CAPA Executive Committee met over 2 days on November
9-10 in Seoul, and the Excom introduced plans to support its
members in the following areas:
• Convergence issues with respect to Accounting Standards,
• Auditing Standards, Ethical Standards And Educational
Standards
• Accounting Standards for Small and Medium Enterprises
(SME)
• Public sector accounting
• Sarbanes-Oxley Act
CAPA NEW LEADERS
International Accounting Standards Committee (IASC).
Currently, he is the Senior Audit Partner of Deloitte Touche
Tohmatsu and as an audit partner, he is involved in various
multinationals and financial institutions, retail and
manufacturing enterprises including US GAAP reporting. His
experience also includes more than 10 years of service at the
Deloitte Touche Tohmatsu office in Brazil.
Kamlesh Vikamsey is currently the President of the Institute of
Chartered Accountants of India and a member of the IFAC Board.
As Deputy President of CAPA, he will chair the CAPA Strategic
Committee, which is comprised of 5 countries. He also chairs the
Centre of Excellence on Education, Training and Continuous
Professional Development of South Asian Federation of
Accountants. Being a practicing Chartered Accountant; he is
associated as Senior Partner of Khimji Kunverji & Co., Mumbai,
a firm of Chartered Accountants, established in the year 1936.
CAPA is a regional accountancy body that represents 31 national
accountancy organisations in the Asia-Pacific region. CAPA’s
mission is to provide leadership in the development, enhancement
and coordination of the accounting profession in the Asia-Pacific
region, to enable the profession to provide services of consistently
high quality in the public interest. To achieve this mission, CAPA
has a commitment to assist the accounting profession in emerging
countries in the Asia-Pacific region.
CAPA Meeting in progress
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FROM THE WORLD OF ACCOUNTANCY
CAPA EXECUTIVE COMMITTEE MEETING IN SEOUL
(L to R) Shozo Yamazaki presenting a gift to Taesik Suh, KICPA President (L to R) Robin presenting a gift to In-Ki Joo, CAPA Excom Representative for Korea
(L to R) Taesik Suh presenting an exclusive gift to Robin, CAPA outgoing President (L to R) Kamlesh Vikamsey, Deputy President, Soon Kwai Choy, Past President
and Shozo Yamazaki, President
A traditional Korean folks dance entitled “Seungmu”

FROM THE WORLD OF ACCOUNTANCY
CAPA EXECUTIVE COMMITTEE MEETING IN SEOUL
An “Ajaeng Sanjo” performanceby the National Center for
Korean Traditional Performing Arts
Delegates of the CAPA Excom meeting
A “gayaguem” ensemble performance at the dinner function
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FROM THE WORLD OF ACCOUNTANCY
CAPA FORMED AN EMERGING CONVERGENCE ISSUES TASK FORCE
The Excom discussed at length on convergence to a common set
of accepted accounting standards, enabling the coexistence of
International Financial Reporting Standards (IFRSs) with national
accounting standards of CAPA member countries.
In order to assist its members with emerging convergence issues
and to raise these issues to the relevant International standard
setters, CAPA formed a task force on Emerging Convergence
issues. CAPA will assist by being an information sharing and
collaboration resource center for its members. In the event of any
Mr Paul Pacter, IASB Director of Standards for SMEs spoke of
current developments on IASB standards for Small and Medium
Enterprises (SMEs).
(L to R) Paul Pacter, Shozo Yamazaki and Yohan Perera sharing a light moment
SME ISSUES
important issues arising that requires clarification or need to be
brought to the attention of the relevant international standard
setter, CAPA will communicate with the international standard
setter for the benefit of its member bodies in the region.
Members on the Emerging Convergence Issue Task Force are
Kamlesh S. Vikamsey, CAPA Deputy President, Geoffrey
Brayshaw, Australia and Winnie Cheung, Hong Kong. Kamlesh
will chair the task force.
In Mr Pacter’s presentation, he identified areas for possible
recognition and measurement simplification of accounting
standards and these will be presented to the IASB Board in
November 2005. He informed that the Exposure Drafts for SME
standards will be circulated by 1st half of 2006 and the final
standards are expected to be out by 1st half of 2007 and will be
effective from the year 2008.
The CAPA SME Task Force which consists of members from Hong
Kong (Chair), Australia, India, Japan, Malaysia and Dr. Susela
Devi; will participate by offering responses and comments on the
Exposure Drafts on SME standards that the IASB will be issuing
soon. The task force is also willing to assist in the field testing of
the standards and provide feedback to IASB.
CAPA GIVES FULL SUPPORT TO PUBLIC SECTOR ACCOUNTING
Excom resolved to give its full support to the International
Federation of Accountant’s (IFAC) International Public Sector
Accounting Standards Board (IPSASB) in developing a more
defined public sector accounting program against a defined
timeline. This will enable CAPA member bodies to serve the
public interest better by using appropriate public sector accounting
standards.
CAPA will continue to advocate the benefits of using the accrual
based public sector accounting standards to the public,
international organisations and governments.
The CAPA representative on IFAC’s IPSASB Consultative
Advisory Group is Mr Ho Bum Pyun who is appointed in 2004.
Mr Ho reported that, “The public sector accounting has changed
rapidly in recent years. There is a movement of new public
management (NPM) which focus to change the public accounting
practices to be more private sector oriented. In this movement,
several countries changed the accounting system from cash-based
to accrual-based accounting.”

FROM THE WORLD OF ACCOUNTANCY
Mr Pyun added that Korea extended the deadline on changing
the public sector accounting reporting to accrual-based from 2005
to 2008. IPSASB has recently adopted almost 10 standards in the
field of accrual-based accounting and also cash-based accounting
standards, as many countries still use cash basis single entry book
keeping systems in the government/public sector.
Mr Roy Tiffin, President of the Institute of Chartered Accountants
of New Zealand commented that New Zealand changed from cash
to accrual accounting basis in the late 1980s for all public sector
entities. New Zealand and Australia have moved to full accrual
accounting in recognition that it provides improved information
for decision making and accountability and a more comprehensive
picture of government finances.
Ho Bum Pyun addressing the CAPA Excom
IMPACT OF SARBANES-OXLEY ACT TO CAPA MEMBER BODIES
The objective of this study is to examine the provisions of the
Sarbanes-Oxley Act (SOX) in detail and identify the impact such
provision have on corporate entities, the public accounting
profession and the capital markets all over the world.
The intention of the study is to reveal the extent to which local
regulators and other connected bodies have embraced the
provision of the equivalent Act, rules and regulations and the
‘motivation factors’ that prompted them to do so, and more
particularly, the ‘trickle down effect’ of SOX.
17TH CAPA CONFERENCE - OSAKA, JAPAN
Preparations for the 17th CAPA
Conference to be held on October
3-5, 2007 are now in full swing.
Aki Fujinuma, Chairman and
President of the Japanese Institute
of Certified Public Accountants
remarked that, ‘This conference
commemorates the 50th
anniversary of the first CAPA conference which was held in
Manila, Philippines in 1957. Forty years have passed since Japan
hosted the 3rd CAPA Conference in 1962. The number of
Ajith Nivard Cabraal, consultant of this project is now finalizing
a questionnaire to be circulated to CAPA members, to collate
responses in the key areas of interest. The target is to present a
draft study report for circulation by 15th January 2006.
The project committee members are from Sri Lanka (Chair), India
and Philippines.
accounting professionals in Japan is growing, and our role in the
Japanese and world economies is only becoming more important.’
The chosen main theme of CAPA Osaka 2007 conference is “How
Professional Accountants can develop the Asian Economy”.
By providing a measure of assurance regarding corporate, financial
and environmental information, professional accountants
collectively function as a platform for the development of national
economies. The current point in time, when the Asian economy
has the potential for continuing future expansion, is an ideal
juncture at which to review the impact of the work of professional
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FROM THE WORLD OF ACCOUNTANCY
accountants on the economies of their respective countries, and
ways in which accountants can contribute to economic growth.
The Japanese Institute of Certified Public Accountants (JICPA)
intends to have 14 break-out (workshop) sessions over October
4, 2007 afternoon and October 5, 2007 morning. Simultaneous
translation (Japanese-English) will be available at the conference.
Simultaneous translation to other languages could also be arranged
if the number of delegates requiring that language is sizeable.
17TH CAPA CONFERENCE - OSAKA, JAPAN
On the evening of October 4, 2007, the JICPA will host a formal
dinner entitled “Japan Night” that will be held in Rihga Royal
Hotel Osaka. The Farewell party on October 5, 2007 will be held
at the Universal Studio Japan.
To register your interest in this conference, please log-in to this
website http://www.capaosaka.com
CAPA PRESIDENT ATTENDS THE AFA CONFERENCE IN HANOI
At the invitation of Dr. Dang Van Thanh, President of the
ASEAN Federation of Accountants (AFA) and Mr. HA Ngoc
Son, President of the Vietnam Association of Accountants and
Auditor, Shozo Yamazaki, CAPA President attended the 14th
AFA Conference in Hanoi on December 9-10, 2005.
Mr Yamazaki presented a speech at the closing ceremony of the
Conference. In his speech, he reaffirmed CAPA’s support for
Vietnam Association of Accountants and AFA for their efforts in
promoting regional cooperation for the economic development
of the ASEAN countries.
He commented that the International Federation of Accountants
(IFAC) has started its second phase of the Compliance Program.
This requires all member bodies to review their jurisdiction’s or
member body’s compliance status with IFAC’s seven Statements
of Membership Obligations (SMOs). He expressed concern that
many member bodies in the Asia and Pacific region, especially in
developing countries, have difficulties not only in compliance with
SMOs but also in the IFAC’s compliance program review of the
current status in their jurisdictions. CAPA plans to assist its
member bodies in coping with this program.
He drew attention to CAPA’s initiatives and projects that is being
carried out, focusing on emerging issues such as convergence, small
and medium enterprises (SMEs), education and Sarbanes-Oxley
Act.
CAPA looks forward to opportunities of mutual cooperation with
accounting bodies in_the ASEAN region to achieve shared
objectives. This cooperation enhances synergy and multiplies the
quality and effectiveness of regional representation, leading to a
maximization of benefits to its membership and the public.
Mr Yamazaki stressed that the accountancy profession will lead
the way in showing the immense value of regional cooperation
through groupings such as AFA, CAPA and global integration
through IFAC.

MEMBERS UPDATES
NEW INDEPENDENT BOARD TO SET PROFESSIONAL STANDARDS
November 2, 2005 - CPA Australia and the Institute of Chartered
Accountants announced the establishment of an independent
ethical standards board to set the code of professional conduct
and professional statements by which their members are required
to abide.
CPA Australia President, Mark Coughlin said the formation of
the Accounting Professional and Ethical Standards Board
(APESB), was very much in the public interest.
“We’ve made an effort in the co-regulatory environment, post
CLERP 9, to review self-regulation. Having standards set by an
independent body ensures they are more robust and transparent,
which is good for the public and the profession,” Mr Coughlin
said.
The Institute of Chartered Accountants CEO, Stephen Harrison
said it is appropriate to move standard setting to a more
AUSTRALIA
independent body rather than having the profession set its own
standards.
“This is even more important when the Professional Standards
interact with Auditing Standards which have the force of law,”
Mr Harrison said.
The APESB will set its own business plan, promulgate, review
and oversee ethical and professional standards.
The board will consist of up to eight members, comprising
representatives from the public sector, corporate sector, audit
profession, academia, and the general public. Two of these will be
CPA Australia members and another two will be ICAA members.
The board will be appointed by early January 2006.
(Extracted from ICAA Website)
MRA ALLOWS MEMBERS TO PRACTISE IN THE USA
December 2005 - CPA Australia recently renewed its mutual
recognition agreement (MRA) with the United States
International Qualifications Appraisal Board (US IQAB), which
provides for mutual recognition of the Australian CPA and the
United States CPA designations.
The MRA offers opportunity for CPA Australia members to
practise accountancy in the United States subject to the laws and
regulations of each respective state; providing they successfully
complete one International Qualifying Examination (IQEX)
instead of four examinations required under the Uniform CPA
Examination.
The US IQAB comprises the National Association of State Boards
of Accountancy (NASBA) and the American Institute of Certified
Public Accountants (AICPA). Its aim is to eliminate impediments
to reciprocity by linking the public accounting profession in the
United States and the accounting profession in countries seeking
mutual recognition of accounting qualifications.
(Extracted from CPA Australia Website)
ICAA LAUNCHES ACADEMIC RESEARCH GRANT AWARD
November 2, 2005 - The Institute of Chartered Accountants in
Australia (ICAA) announced a new Academic Research Grants
Scheme to support leading edge research in accounting and related
fields.
The Grants Scheme, announced at the first of the Institute’s annual
Academic Update conferences in Brisbane, will award up to a
total of $150,000 for ten research projects per year Australia-wide.
This initiative strengthens the Institute’s ties with Australian
academics and provides essential funding for pioneering
accounting research.
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MEMBERS UPDATES
ICAA LAUNCHES ACADEMIC RESEARCH GRANT AWARD
The Grants Scheme offers academics and post-graduate students
the opportunity to make valuable corporate contacts with Institute
members from founders of small practice to executives of Australia’s
largest companies.
The Institute has supported a range of thought leadership projects
in the past in areas such as:
• Audit
• Triple Bottom Line
• Forensic Accounting
• Superannuation and Taxation
“We encourage anyone working on or considering research that
benefits the accounting community, to apply for an Institute
Research Grant and help us raise the awareness of the quality of
home-grown research,” said Stephen Harrison, Chief Executive
Officer, Institute of Chartered Accountants in Australia.
December 2005 – Members of the Institute of Chartered
Accountants in Australia (ICAA) can expect to be working under
a new Code of Professional Conduct from 30 June 2006. The
project - to align the Institute’s code with the recently revised
International Federation of Accountants’ (IFAC) Code of Ethics
- is running on schedule, with an exposure draft due early in 2006.
The main change will be a replacement of the old Code of
Professional Conduct with two separate new codes. The new Code
of Ethics will outline the conceptual framework that accountants
must operate by, and the new Code of Conduct will provide
guidance for members in applying the Code of Ethic’s conceptual
framework.
Following this, and with member feedback incorporated, the
proposed code will be forwarded to the recently established
AUSTRALIA
The announcement will continue to be made around the country
this month at the annual state-based Academic Update
conferences. The Institute’s Academic Update conferences are
an opportunity for leading academics and lecturers to be updated
on the latest accounting technical information.
Applications for the Grants Scheme are open to teams or
individuals at any stage of their academic career. To apply for a
2006 grant, applicants need to submit a research proposal as well
as a written statement from their Head of Department before 10th
February 2006. For further information visit: www.icaa.org.au/
academic/grants or call 1300 137 322.
(Extracted from ICAA Website)
REVISION OF CODE RUNNING ON SCHEDULE
Accounting and Professional and Ethical Standards Board
(APESB) for review by the end of April. The new code will then
be operative by 30 June 2006.
The project is a joint initiative between ICAA and CPA Australia.
The bodies believe the revised code should be a single, clearly
presented document following the structure, content and
numbering of the IFAC code to ensure members can use it easily.
Where sections of the Code of Professional Conduct represent
more stringent requirements than IFAC’s revised Code of Ethics,
these sections will be carried forward into the Australian version
of the Code of Ethics - Code of Conduct.
(Extracted from ICAA Website)

MEMBERS UPDATES
AUSTRALIA
NEW MODEL FOR INTERPRETING ACCOUNTING STANDARDS IN AUSTRALIA
The Australian Accounting Standards Board (AASB) has issued
an invitation to comment, 5.pdf” Proposed Interpretations Model
for Australian Accounting Standards, that recommends changes
to the way in which Interpretations of Australian Accounting
Standards are developed.
In announcing the proposals, Professor David Boymal, AASB
Chairman, said that: “The significant changes in the financial
reporting landscape, particularly the adoption of Australian
equivalents to IFRSs [International Financial Reporting
Standards], has given rise to the Board’s review of the
interpretations structure. The Board believes that the proposals
will result in a more flexible interpretations structure that will be
better placed to adapt to changing circumstances and the nature
of the issue to be addressed.”
Changes recommended in the proposals include:
• The AASB will assume direct responsibility for developing
Interpretations and the Urgent Issues Group will be
disbanded.
• An Interpretations Agenda Committee would be formed
Most US senior executives take a positive view of their company’s
initial compliance with Section 404 of the Sarbanes-Oxley Act,
according to a recent Pricewaterhouse Coopers Management
Barometer. The majority has since moved on to align their
quarterly Section 302 reporting with their annual 404 assertion—
and beyond, to establish a year-two compliance process.
Most agree that work on Section 404 compliance has helped their
company in terms of motivation, understanding and improvement
of internal controls and processes.
- Motivation to improve internal controls 76%
- A better understanding of company processes and controls 70%
- Motivation to improve risk management 65%
- Impetus to streamline underlying processes 61%
CANADA
LOOKING BEYOND COMPLIANCE
with the purpose of recommending how an issue proposal
is dealt with, for example, whether an interpretation is
warranted, whether it is a purely domestic issue or whether
it should be referred to the International Financial
Reporting Interpretations Committee of the International
Accounting Standards Board.
• An advisory panel chaired by the AASB Chairman or
another AASB member will be formed on each issue where
guidance may be necessary.
• Members of advisory panels will be appointed on the basis
of professional competence and practical experience in the
topic area and, as such, the composition of advisory panels
would be expected to vary depending on the issue under
consideration.
The invitation to comment can be downloaded from the AASB
website at http://www.aasb.com.au/public_docs/acc_eds/
Interpretations_ITC_11-05.pdf. Comments are requested by
January 18, 2006, and can be emailed to standard@aasb.com.au.
Source: http://www.accountingeducation.com
“We find that well planned and executed actions taken to achieve
most kinds of regulatory compliance also support the achievement
of fundamental business objectives,” says PricewaterhouseCoopers
partner Nancy Beacham.
No clear consensus on leadership of future Sarbanes-Oxley
matters. Going forward, surveyed companies’ Sarbanes-Oxley
matters will be led by a variety of groups, including: internal audit
(37%), the CFO or Controller (31%), an existing task force or
work group (23%) and/or new or existing risk management
functions (16%).
Half (50%) plan to use internal audit in an oversight or quality
control role, while a testing-only function is designated for internal
audit by 37%.
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“In our experience, housing leadership of the Sarbanes-Oxley
compliance effort in the finance organization can send the message
that compliance is finance’s problem when, in fact, nearly all
operational processes in a company feed the financial reporting
MEMBERS UPDATES
CANADA
stream, and thereby have a role in compliance,” notes Beacham.
(Extracted from CICA Website)
PROFESSION CONSIDERS CHANGES TO CA QUALIFICATION
Changes to the Canadian Institute of Chartered Accountants
(CICA) Chartered Accountants (CA) qualification process are
currently being considered. These changes are aimed at increasing
opportunities for CA candidates to earn their designations as well
as opening up access to the profession. If accepted, the changes
could add to the pool of candidates by as much as 20% over the
next five years.
Candidates would have more opportunities to pursue their
designations by expanding both what they can do during their
mandatory experience period and where they can do it. The
proposed changes would also increase access to the profession for
Canada’s best and brightest business students, and at the same
time maintain the profession’s rigourous standards for excellence
and expertise.
One change under consideration is an expansion of what is
recognized as “experience.” Under this proposal, CA candidates
would be able to gain their work experience in other areas in
addition to audit and assurance — areas such as performance
reporting, finance, taxation, management information,
governance, strategy and risk management. The standards
governing recognition of this experience would be as rigourous as
those that define current experience requirements.
Under this proposal, audit and assurance hours would be mandatory
only for those candidates who wish to become licensed as public
accountants. Candidates who qualify as CAs without audit and
assurance hours would be able to acquire them at a later date,
should they wish to become licensed public practitioners.
The profession is now in the process of evaluating these proposed
changes through consultation with members, present and potential
employers of CA candidates, business students and academics. An
implementation decision will be made in 2006.
(Extracted from CICA Website)
CGA-CANADA RELEASES FINANCIAL STATEMENTS IN XBRL
October 3, 2005 – The Certified General Accountants Association
of Canada (CGA-Canada) has become the first Canadian
accounting association to publish its financial statements using
the Extensible Business Reporting Language (XBRL).
XBRL is a royalty-free computer language specifically designed
for communicating and publishing financial information. It is based
on the XML publishing standard currently used in financial
reporting, and uses specific data tags to identify individual elements
in financial statements. XBRL increases the speed at which data
is processed, reduces the chance of error caused by data re-entry,
and allows users to automatically verify information.
“XBRL is becoming the new global financial reporting standard,”
says Anthony Ariganello, CGA-Canada President and CEO. “We
are following through on our commitment to financial
professionals across Canada by leading the way with this trend.”
CGA-Canada joined XBRL Canada in 2001. It is a not-for-profit
consortium which oversees the development of the Canadian
taxonomy.
(Extracted from CGA-Canada Website)

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CHINA
CHINA AND IASB MEET ON CONVERGENCE OF ACCOUNTING STANDARDS
Representatives of the China Accounting Standards Committee
(CASC) of the People’s Republic of China and the International
Accounting Standards Board (IASB) met in Beijing for two days
on November 7-8, 2005, to discuss a range of issues relating to the
convergence of Chinese Accounting Standards (CASs) with
International Financial Reporting Standards (IFRSs).
At the conclusion of the meeting, the two delegations released a
joint statement setting out key points of agreement, including the
following:
• China stated that convergence is a fundamental goal of its
standard-setting program.
• China affirmed its intention that an enterprise applying
CASs should produce financial statements that are the
same as those of an enterprise that applies IFRSs.
• The IASB delegation acknowledged that convergence to
IFRSs will take time and how to converge with IFRSs is a
matter for China to determine.
• During the past year, China has issued 21 exposure drafts.
China is currently working to finalize these and develop
implementation guidance. Two more exposure drafts are
nearing completion. China has also begun a review of its
16 existing CASs. As a result, China’s accounting standards
HONG KONG
system for business enterprises is being developed with a
view to achieving convergence of those standards with the
equivalent IFRSs.
• The IASB representatives applauded and expressed
admiration for the enormous progress China has already
made toward convergence with IFRSs.
During the discussions, the two delegations identified specific ways
each could help the other in the future. The CASC agreed to
assist the IASB in researching and developing recommendations
on a number of accounting issues for which China, because of its
unique circumstances and environment, has particular experience,
including disclosure of related party transactions, fair value
measurements, and business combinations of entities under
common control. The IASB agreed to assist China by reviewing
the revisions to the exposure drafts and existing standards and
implementation guidance.
The IASB and the CASC representatives agreed to continue their
periodic meetings and to strengthen liaison between their two
bodies.
Source: http://www.accountingeducation.com
HKICPA ANNOUNCES CONVERGENCE TO INTERNATIONAL STANDARDS ON ETHICS
December 8, 2005 – The Hong Kong Institute of CPAs (HKICPA)
announced that it has converged its professional ethics
requirements with the International Code of Ethics for Professional
Accountants. This new Code of Ethics will apply as of 30 June
2006.
The new Code of Ethics is an adoption of the code issued by the
umbrella organization for the world wide accounting profession,
the International Federation of Accountants (IFAC).
“This is the final step in our full convergence to international
standards on auditing, accounting and ethics,” says Edward K.F.
Chow, HKICPA President. “Hong Kong’s professional standards
now reflect the best thinking and the best practices from the world’s
foremost accounting bodies.”
The new Code of Ethics establishes a conceptual framework for
all professional accountants to ensure compliance with the five
fundamental principles of professional ethics. These are integrity,
objectivity, professional competence and due care, confidentiality,
and professional behaviour.
The new Code of Ethics is expanded to incorporate the local
requirements arising from the laws and regulations of Hong Kong
in areas such as disclosure of confidential information under various
Ordinances, changes of auditors of listed issuers, directors’ financial
and accounting responsibilities.
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“This final step to full convergence,” says Mr. Chow, “Bolsters
international confidence in Hong Kong’s accounting profession
and by association, its role in maintaining the respect Hong Kong
MEMBERS UPDATES
HONG KONG
HKICPA DEBUTS CPA QUALIFICATION PROGRAMME IN CHINA
December 7, 2005 – The Hong Kong Institute of CPAs (HKICPA)
announced that it world class CPA qualification programme would
now be available through the Beijing National Accounting
Institute (BNAI), and is now calling for first-time enrolments.
The collaboration between the HKICPA and BNAI aims to help
China meet the booming demand for professional accountants.
Officiating at the press conference, Mr. Edward K.F. Chow,
HKICPA President, says that since the Closer Economic
Partnership Arrangement (CEPA) came into effect, China has
further opened its doors to Hong Kong services sectors, including
that accounting profession.
“The internationlisation of China’s economy and the emerging
collaboration between China and Hong Kong has created a
pressing need for Chinese accounting professionals with
international business experience and knowledge. The Institute’s
qualification programme gives professional accounting graduates
this edge.”
China has been enhancing its cooperation with professional
accounting associations outside China to train accountants in
international accounting standards. One example is the agreement
signed between China and Hong Kong government for exemption
of examination papers. Under the agreement, candidates who pass
the national examination for Certified Public Accountants in
China will be exempted from two subjects – financial management
and auditing – for the HKICPA’s qualification programme and
vice versa.
must command as an international financial centre.”
(Extracted from CPA Hong Kong Website)
The HKICPA qualification programme is recognized under
reciprocal membership agreements with eight global chartered
accountants institutes and one professional accounting association.
They include the chartered institutes of Australia, England and
Wales, Ireland, New Zealand, Scotland, Zimbabwe, South Africa
and Canada. The Institute also has an agreement with CPA
Australia. Graduates of the HKICPA qualification programme are
accorded recognition on five continents, and can gain access to
membership and practicing rights in other countries, subject to
certain terms and conditions.
The qualification programme covers four subjects: financial
reporting, financial management, auditing and information
management, and taxation. The programme focuses on training
on thinking and communicating, with workshops designed to
strengthen analytical and problem-solving skills. In addition, the
internationally accredited accounting practices taught in the
qualification programme helps widen accountants’ international
competitiveness, while the use of English as the medium of
instruction improves the English competence of participants.
Enrollment for the qualification programme is now open and
candidates are welcome to enroll online. The deadline for
application is January 6, 2006 and the first course will take place
in BNAI in February 2006. For more information, please visit
website at www.hkicpa.org.hk/QPChina.php
(Extracted from CPA Hong Kong Website)

December 1, 2005 - Corporate Governance is taking rapid strides
in the arena of Indian Corporate Culture. Though the philosophy
of governance may be assumed general in nature, the Securities
and Exchange Board of India (SEBI) has initiated a number of
definitive steps for evolving better corporate governance.
It had earlier constituted a committee on Corporate Governance
under the Chairmanship of Shri Kumar Mangalam Birla, the
recommendations of which culminated the framing of corporate
governance requirements under Clause 49 of the Listing
Agreement. Thereafter, SEBI constituted another committee
under the Chairmanship of Shri Narayana Murthy, which
recommended new set of initiatives for transparency and disclosure
as a part of better corporate governance.
The new requirements which have been prescribed under Clause
49 is to take effect from 1st January 2006 and Corporate entities
have to comply with new requirements such as composition of
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INDIA
NEW GUIDANCE NOTE ON CERTIFICATION OF CORPORATE GOVERNANCE REQUIREMENTS
Recent audit failures in Japan, such as that for a prestigious listed
company in Japan has led Japan’s Financial Services Agency to
put pressure on the profession to tighten up the rule on auditor
rotation.
As a response to this call for reform, the Japanese Institute of
CPAs (JICPA) has imposed stricter audit partner rotation rule in
October 2005. Up until then, Japanese audit partner rotation
JAPAN
SHORTER PARTNER ROTATION FOR JAPAN
rule is set at 7 year-rotation with 2 year cooling-off period. But,
from October 2005, the big four accounting firms in Japan will
comply with a 5 year rotation rule with a 5 year cooling period for
the lead audit partners and review partners of listed companies.
This 5 + 5 year rule covers auditors of listed companies in Japan.
JICPA plans to make this rule effective in April 2006.
MALAYSIA
THE EDUCATION AND TRAINING OF CHARTERED ACCOUNTANTS: A MALAYSIAN PERSPECTIVE
Associate Professor Dr. S. Susela Devi, from the University of
Malaya presented a paper entitled “The Education and Training
of Chartered Accountants: A Malaysian Perspective”. The paper
discusses the efficacy of the Malaysian Institute of Accountants’
education and training programme for Chartered Accountants of
Malaysia in the light of IFAC’s International Education Standards
(IES) 1 to 7.
minimum number of Independent Directors, powers and role for
Audit Committee and other financial disclosures.
The corporates have to get a compliance certificate from the
statutory auditors of the company on compliance of new
requirements of corporate governance. This certificate should be
sent annually to all the shareholders and also to the stock
exchanges.
Keeping in view of the conditions prescribed by the SEBI and in
order to facilitate the members of the profession in issuance of
compliance certificate, the Institute of Chartered Accountants of
India at its recent Council Meeting held at Amritsar has finalized
the new Guidance Note on Certification of Corporate
Governance. The revised guidance note would be published
shortly.
(Extracted from ICAI Website)
This paper describes the existing Malaysian model of professional
accounting education and explores the IFAC’s IES 1-7 to provide
a framework for examining the current Malaysian model. Finally,
the paper highlights ongoing initiatives in Malaysia to address
issues of concern in the current Malaysian model.
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The accounting education in Malaysia is observed to be truly
internationalised. The Accountants’ Act 1967 recognises members
of foreign professional bodies that include ACCA, CPA(A),
CIMA, ICA(Australia), ICAEW, ICA (Scotland), ICA (Ireland),
ICA (India), CICA as well as the local professional body, MICPA.
Furthermore, accounting graduates from recognised public
universities are eligible to become members of the Institute after
obtaining three years’ relevant work experience. In this context
the Institute plays a dual role as a regulator as well as a professional
body.
There was concern, however, that there is a need for changes if
accounting programmes have not kept pace with the dynamic,
complex, expanding and constantly changing profession for which
students are being educated. The importance of accounting
graduates possessing general knowledge, intellectual skills,
interpersonal skills, communicational skills, organizational and
business knowledge and skills and personal capabilities has been
emphasised.
In 1999 a special Task Force was appointed by the Ministry Of
Higher Education to review the accounting curriculum offered by
the 7 recognised public universities. The Task Force deliberations
(also involved the other key stakeholders) resulted in the Halatuju
Report which was subsequently adopted by the Ministry of
MEMBERS UPDATES
MALAYSIA
Education (MOE). The Report takes in account all guidelines
issued by IFAC until 1999. This was effected in 2002 by all public
universities offering accountancy degree programmes.
However, with the advent of IESs 1-7, the MOE has again called
for a review of the Halatuju Report. This is indeed timely and
illustrates the vital role of the government in accounting
education.
It is noted in the paper that the career paths of Chartered
Accountants in Malaysia is the collective effort of the Institute
(MIA) and the service providers i.e. the institution of higher
learning both public and private (including the recognized
professional bodies), the employers and the regulatory bodies.
These stakeholders should work together to ensure that the
accountants have the proficiency and competence to deliver what
is reasonably expected of them.
To protect the public interest, and the interest and reputation of
its members, the Institute needs to gain an assurance that the
educational process of its service providers are producing
candidates with the appropriate range and level of capabilities. .
The Institute is currently exploring long-term strategies and plans
to ensure Malaysian Chartered Accountants remain globally
competitive.
NEPAL
KICPA AND ICAN DISCUSS MUTUAL COOPERATION
October 2005 - A 32-member delegation led by Mr. Jake Lee of
the Korean Institute of Certified Public Accountants (KICPA)
visited the Institute of Chartered Accountants of Nepal (ICAN)
on October 7, 2005. During the visit, Mr. Lee discussed about
mutual cooperation between the two institutes.
During the meeting, President of ICAN, Mr. Narayan Bajaj
discussed about the latest developments in the accounting sector
and strategies to strengthen the capacity of professional
accountants to cope with the challenges brought about by the
World Trade Organization (WTO) following Nepal’s membership.
Mr. Lee, on behalf of the delegation agreed to provide technical
cooperation to ICAN in days to come, for capacity enhancement.
He also briefed about KICPA’s activities in the meetings.
At the same time, Mr. Bajaj, President of ICAN spoke of ICAN
activities and various educational programs. Mr. Binod
Rajbhandary, Vice-President of ICAN also made a presentation.
The joint meeting of KICPA and ICAN focused on various matters
of mutual cooperation.
(Extracted from ICAN Website)

MEMBERS UPDATES
PHILIPPINES
ASC GIVES TEMPORARY RELIEF TO NON-PUBLICLY ACCOUNTABLE ENTITLES ON
APPLICATION OF NEW STANDARDS
The Accounting Standards Council (ASC) approved the issuance
of Philippine Accounting Standard (PAS 101), Financial
Reporting Standards for Non-publicly Accountable Entities. The
Standard is intended to give temporary relief to non-publicly
accountable entities or NPAEs in the application of new Philippine
Accounting Standards (PAS) and Philippine Financial Reporting
Standards (PFRS) that became effective in 2005.
When initially issued, the new PAS and PFRS were intended to
be applicable to all reporting entities required to file financial
statements in accordance with Philippine GAAP. Due to the
significant number of small and medium-sized entities (SMEs) in
the Philippines and the IASB decision in 2005 to undertake a
project to develop accounting standards suitable for entities that
do not have public accountability, the ASC has decided to give
relief to these companies.
The Standard gives an entity that qualifies as an NPAE the option
not to apply the new PAS and PFRS that became effective in
2005 in their 2005 financial statements and to apply instead the
accounting standards that were effective as of December 31, 2004.
The new PAS and PFRS include, among others, the PAS on the
effects of foreign exchange, employee benefits, and financial
instruments and the PFRS on business combinations, share based
payments and assets held for disposal. An NPAE, however, may
still choose to apply some or all of the new PAS and PFRS.
For purposes of the Standard, an NPAE is an entity other than
the following entities which are considered to have public
accountability:
• an entity required to file financial statements under SEC
Rule 68.1 (i.e., listed entity, issuer that sell SEC-registered
securities, issuer with assets of at least P50 million and
with 200 or more stockholders each holding at least 100
shares of a class of its equity securities);
• an entity in the process of filing its financial statements
for the purpose of issuing any class of instruments in a public
market;
• an entity that holds assets in a fiduciary capacity for a broad
group of outsiders (e.g., a bank, an investment house, a
finance company, an insurance company, a securities
broker/dealer, a mutual fund and a pre-need company);
• an entity that is a public utility or similar entity that
provides an essential public service; or
• an entity that is economically significant [i.e., an entity
with (consolidated) total assets of more than P250 million
or (consolidated) total liabilities of more than P150
million]; or
• an entity that is considered by its primary regulator to have
public accountability.
If an entity presents consolidated financial statements,
consolidated total assets or consolidated total liabilities are used
in determining whether it is economically significant. For purposes
of the Standard, an entity that is a subsidiary of a parent that is
considered to have public accountability is similarly considered
to have public accountability.
The Standard is effective for annual periods beginning on or after
January 1, 2005. The Standard shall be effective for 2005 to 2007,
unless revoked earlier.
The Standard has been forwarded to the Board of Accountancy
and Professional Regulation Commission for approval.
Copies of the Standard will soon be available at Philippine Institute
of CPAs.
(Extracted from PICPA Website)
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MEMBERS UPDATES
SRI LANKA
ICASL TAKES A LEAD IN PROVIDING TRANSPARENCY, ACCOUNTABILITY AND
GOOD GOVERNANCE TO ORGANIZATIONS INVOLVED IN TSUNAMI REBUILDING EFFORTS
Sri Lanka has suffered the worst natural disaster in the history of
the nation, experienced an unparalleled outpouring of human
sympathy in terms of concrete assistance, and saddled with the
task of starting a meaningful future for the nation in the shortest
possible time. The successful achievement of re-building efforts
demand Transparency, Accountability and Good Governance, so
that the process becomes credible and effective.
These attributes can satisfy all parties and ensure efficient
utilization and further inflow of resources -not only to tide over
the present - but also to achieve sustainable growth which has
eluded us up to now. This requires professional inputs and that is
where the ICASL comes in Assistance for Relief Work.
The Institute of Chartered Accountants of Sri Lanka (ICASL)
has identified 3 critical service areas to render its contribution to
the country at this hour of need. Such services would be offered
free of charge to the Non-governmental organization’s and
organizations handling Tsunami relief work. This is done by setting
up a Trust; ‘ICASL Trust for Services for Tsunami projects.’ This
trust will build-up funds to reimburse members for their costs.
The Type of Services:
a. Planning Stage: making available a tool-kit for the
establishment of proper finance and resource control
systems in agencies and /or organizations which are
providing donor funded services. This is vital in order to
instill financial discipline and foster accountability. The
professionally developed Toolkit would contain the basic
financial procedures and internal control systems which
should be implemented by project based organizations in
the evaluation, procurement, contracting, implementing
and monitoring of activities. It would stipulate the
processes needed to be established to ensure proper fund
and resources management. The Toolkit is issued free of
charge.
ICASL strongly recommends that donors stipulate a
condition that recipient organizations should conform to
the standards and guidelines as specified in the ICASL
Toolkit as and when donor funds are being utilized.
b. Project Implementation Stage: Accounting, Fund
Management, Trusteeships, Financial Advisors, Members
of Project Management Committee and audit Committees
are some of the services that members of ICASL offer
during the project implementation stage.
By way of explanation, persons who are involved in
humanitarian and re-building efforts, although likely to
possess many humanitarian qualities, may not necessarily
possess the project implementation and funds management
skills and competencies that are needed for the efficient
delivery of relief or effective implementation of re-building
projects. In order to bridge this important gap, the ICASL
would, at the request of donors or recipient organizations,
nominate Chartered Accountants who could be involved
in such projects or organizations as independent and
competent resource persons. Such Chartered Accountants
would contribute their expertise directly to the recipient
organizations at no cost to the organizations.
In the course of their duties, they are likely to initiate
‘outsourced’ financial management and reporting functions
and/ or management information systems, where the
necessary financial records may be maintained under their
supervision in a manner so as to establish whether the needs
of the ultimate beneficiaries have been met by the
respective organizations. In this manner, the services of
Chartered Accountants would also be offered to serve in
the many local government institutions that are to be
involved in the re-building operations. By doing so, it is
likely that the overall expertise and accountability levels
at local government bodies too could be enhanced.
c. Post Project Completion Stage: Audit & Assurance
Services. It is obvious that all donors would be keen to
have a proper review and audit carried out. The projects

and/or organizations to whom they have contributed
resources, in order to receive assurance that their donations
have been utilized in the manner as directed or
contemplated. In order to provide such assurance, the
ICASL would assign Chartered Accountants to undertake
audits of the organizations and/ or projects , which have
received substantial funds from the donors.
Such chartered Accountants would provide assurance services at
no cost to the recipient organizations/projects, and their
professional fees would be settled directly by the ICASL.
Through this mechanism, the donors would be comfortable in
the knowledge that their funds are being used in a transparent
and satisfactory manner. At this current time, when a tremendous
amount of work is to be undertaken in a short space of time, many
MEMBERS UPDATES
SRI LANKA
UNITED KINGDOM
IMPROVING THE AAT ACCOUNTING QUALIFICATION - THE PILOT DIPLOMA PATHWAY
Although AAT National Vocational Qualifications /Scottish
Vocational Qualifications (NVQ/SVQ) system works well for
some, it doesn’t meet everyone’s needs. To ensure the AAT
qualification is fit for purpose for all its customers, AAT have
developed a new option - the Diploma pathway to the AAT
Accounting Qualification. The Diploma pathway is now available
alongside the NVQ/SVQ pathway.
The Diploma pathway is competence-based but without the NVQ/
SVQ workplace evidence requirement which many find difficult.
It is streamlined, more flexible and has improved delivery systems.
It also includes a new Professional Ethics for Accounting
Technicians unit; a market leading innovation much valued by
employers.
instances would obviously surface at all levels and stages, where
waste and leakages could thrive.
Such waste could be reduced or leaks plugged mainly through the
intervention of persons with the appropriate skills and specialized
knowledge whose expertise and experience should be utilized as
extensively as possible.
The ICASL has decided to offer the services of Chartered
Accountant to meet this need, which it considers as fulfilling a
national responsibility. The ICASL is also firmly of the view that
these vital inputs would lead to the enhancement of the overall
credibility and accountability levels of the entire country.
(Extracted from ICASL website)
However, the overall outcome of both the NVQ/SVQ and
Diploma pathways is the same - the AAT Accounting
Qualification. The Diploma pathway is based on the same
standards, is assessed by practical skills tests as well as exams, and
delivers the same high level of practical skills, knowledge and
effective performance in the workplace.
It also has the same high standard, rigour and quality as the NVQ/
SVQ pathway, and gives the same progression to AAT full
membership and the UK chartered accountancy qualifications.
(Extracted from AAT-UK website)
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ACCA (the Association of Chartered Certified Accountants) and
the Vietnam Association of Certified Public Accountants
(VACPA) have strengthened their links by signing a memorandum
of understanding (MOU).
The MOU was signed on 10 December 2005, following the
ASEAN Federation of Accountants (AFA) conference in Hanoi.
VACPA and ACCA have agreed to co-operate nationally and
internationally, and will work closely together on issues such as
corporate governance, professional ethics, technical research,
continuing professional development, professional accountancy
training, education and examinations. The two bodies, together
with the Ministry of Finance, will continue to co-operate on
education and training through the joint examination scheme and
they have also agreed to work together on regulation, and will be
developing a programme of joint Continuing Professional
Development (CPD) activities in Vietnam.
MEMBERS UPDATES
UNITED KINGDOM
STRENGTHENING LINKS IN VIETNAM
ACCA and VACPA will also work together to raise awareness of
the accountancy profession and ACCA will provide technical
support to VACPA, advising on regulatory structures for the
accountancy profession, and sharing best practice in the running
of a professional body - including advising on monitoring of
members and ethical compliance.
ACCA Chief Executive Allen Blewitt said: “We are delighted to
have signed this comprehensive Memorandum of Understanding
with VACPA which will ensure that we can work closely in a
number of areas, not only to develop the accountancy profession
in this country but to provide opportunities for young Vietnamese
to have a successful career here and on the international stage.
(Extracted from ACCA website)
ACCA AND SINGAPORE INSTITUTE SIGN MAJOR AGREEMENT
October 10, 2005 - An agreement which will have an impact on
the working lives of thousands of accountants and finance
professionals in Singapore has been signed by the Institute of
Certified Public Accountants of Singapore (ICPAS) and ACCA
(The Association of Chartered Certified Accountants).
The Mutual Recognition Agreement (MRA), enables accountants
who have qualified with either ICPAS or ACCA to be a member
of the other body, and enjoy the benefits which both organisations
can offer. ICPAS and ACCA already have a strong relationship,
having worked together for many years through their Joint
Examination Scheme which has helped to develop the
accountancy profession in Singapore, the region and
internationally.
(Extracted from ACCA website)

IFAC NEWS
IFAC RELEASES GUIDANCE TO HELP STRENGTHEN ACCOUNTANCY BODIES AND
CONTRIBUTE TO ECONOMIC STABILITY WORLDWIDE
December 7, 2005 – Recognizing the international accountancy
profession’s role and responsibilities in fostering economic growth
in developing nations, the International Federation of
Accountants’ (IFAC) Developing Nations Committee has released
guidance entitled Establishing and Developing a Professional
Accountancy Body.
Available electronically through the IFAC website
http://www.ifac.org/Store/Category.tmpl?Category=
Developing%20Nations or on a CD-ROM, this new guidance will
be a valuable resource to development partners, governments and
others seeking to build accountancy capacity in various countries,
as well as to many of IFAC’s current and future member
organizations.
The new guide addresses a variety of situations, including where a
formal accountancy profession does not exist in a country, where
the profession exists and there is a desire to establish a professional
accountancy body, and where an existing professional body requires
further development and enhancement.
The guide addresses the following areas:
• Establishing a professional body;
• Roles and responsibilities of a professional accountancy
body;
• Education and examinations; and
• Capacity development.
The Developing Nations Committee welcomes best practice
examples and other input on the guide, which it anticipates
updating at least annually. These may be emailed to
developingnations@ifac.org.
IFAC COUNCIL SUPPORTS INITIATIVES TO HELP DEVELOPING NATIONS AND
ENHANCE QUALITY PRACTICES BY ACCOUNTANTS WORLDWIDE
November 21, 2005 – At its Council meeting in Auckland, New
Zealand, the International Federation of Accountants (IFAC)
addressed Part 2 of IFAC’s Member Body Compliance Program.
This part of the program seeks to understand how members and
associates are meeting the requirements of IFAC’s Statements of
Membership Obligations (SMOs), which establish requirements
for members and associates to promote, incorporate, and assist in
implementing international standards issued by IFAC and by the
International Accounting Standards Board.
The SMOs also establish requirements for quality assurance and
investigation and discipline programs. The Part 2 questionnaire,
SMO Self-Assessment, will be distributed at the end of November
2005. The information obtained will enable IFAC to understand
more deeply the challenges and impediments each member and
associate may face in meeting the membership obligations. As
Part 3 of the Compliance Program, members and associates will
be required to develop action plans to address challenges.
“The extent of member body participation in the IFAC
Compliance Program has been unprecedented,” comments
Graham Ward. “More than 150 member bodies responded to Part
1, Assessment of the Regulatory and Standard Setting Framework,
demonstrating their commitment to integrity and quality. Over
80 of these responses are posted on the IFAC website and the
remainder will be posted in the next few months.”
The Roles and Domain of the Professional Accountant in
Business
To facilitate understanding of the role of professional accountants
in business among business leaders, management and investors,
IFAC issued an information paper on the diverse roles,
competencies and value of the professional accountant in business.
The paper includes a definition of the professional accountant in
business and highlights the many roles that professional
accountants in business fulfill, including implementing and
maintaining operational and fiduciary controls, providing
analytical support for strategic planning and decision making,
ensuring that effective risk management processes are in place,
and assisting management in setting the tone for ethical practices.
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IFAC NEWS
IFAC COUNCIL SUPPORTS INITIATIVES TO HELP DEVELOPING NATIONS AND
ENHANCE QUALITY PRACTICES BY ACCOUNTANTS WORLDWIDE
The paper on “The Roles and Domain of the Professional Accountant
in Business” can be downloaded from the IFAC online bookstore
free of charged by going to http://www.ifac.org/store.
IFAC Constitution and Governance Structure
In a workshop session, Council reviewed a proposed revision to
the IFAC Constitution designed to strengthen the organization’s
governance arrangements both to enhance its operations and to
conform with current best practices.
The proposed revision would create a three-tiered governance
structure that would include the IFAC Constitution, new IFAC
Bylaws, and the IFAC Policies and Procedures Manual.
The proposed revision was issued in November 2005 as an
invitation to comment and comments are requested by February
1, 2006. It may be viewed on the IFAC website by going to
http://www.ifac.org.
New IFAC Board Members Appointed
The IFAC Council also approved the nomination of six new
members to the IFAC Board to serve three-year terms.
They are Joycelyn Morton, Australia; Kamlesh Vikamsey, India;
Bernadette McGrory-Farrell, Ireland; Roberto D’Imperio, Italy;
Gen Ikegami, Japan; and Robert L. Bunting, United States.
Two other members of the IFAC Board – Sylvie Voghel of Canada
and Ndung’u Gathinji of Kenya – were reappointed by the Council
to three-year terms.
IFAC Board (November 2005 – November 2006)
Graham Ward, CBE, President
Juan José Fermín del Valle, Deputy President
Argentina
Joycelyn Morton, Australia
Guy Almeida Andrade, Brazil
David Smith, Canada
Sylvie Voghel, Canada
Yugui Chen, China
William Nahum, France
Eric Li, Hong Kong
Kamlesh Vikamsey, India
Bernadette McGrory-Farrell, Ireland
Ofer Minirav, Israel
Roberto D’Imperio, Italy
Gen Ikegami, Japan
Ndung’u Gathinji, Kenya
Haji Alias Abdul Samad, Malaysia
Göran Tidström, Nordic Federation
Ignatius Sehoole, South Africa
David Leonard, United Kingdom
Charles Tilley, United Kingdom
Robert L. Bunting, United States
Charles Horstmann, United States
During the meeting, the Council also accepted two new
organizations as associates of IFAC:
• Association of Accountants and Auditors in Armenia; and
• Latvian Association of Certified Auditors.

IFAC NEWS
IAASB PROPOSES ENHANCED REQUIREMENTSS FOR AUDITORS
TO CONSIDER RELATED PARTIES
January 3, 2006 – The involvement of related parties, such as
directors, owners, and management, in major corporate scandals
encouraged the International Auditing and Assurance Standards
Board (IAASB) of the International Federation of Accountants
(IFAC) to review its current auditing standard on the subject.
The IAASB has just issued an exposure draft (ED), proposed
International Standard on Auditing (ISA) 550 (Revised),
Related Parties, as a result of its review, and is inviting comments
on proposed requirements for auditors regarding the audit of
related party relationships and transactions.
The current standard requires the auditor to perform certain
specified procedures. The proposed standard would extend
current practice by requiring the auditor to obtain an
understanding of the nature and business rationale of an entity’s
related party relationships and transactions sufficient to identify,
assess and respond to the risks of material misstatement resulting
from them. It also places greater emphasis on the difficult task for
the auditor of attempting to identify related party relationships
and transactions not identified or disclosed by management.
The proposed standard places new emphasis on evaluating the
effects of related party relationships and transactions on the
financial statements, even in circumstances where the financial
reporting framework does not establish related party accounting
or disclosure requirements.
John Kellas, Chairman of the IAASB, explains: “The proposed
standard gives greater recognition to the particular risks
associated with related parties and calls on the auditor to do more
work to identify related parties and the rationale for the
transactions between them and the audit client.”
How To Comment
Comments on the exposure draft are requested by April 30, 2006.
The exposure draft may be viewed by going to http://www.ifac.org/
EDs. Comments may be submitted by email to
EDComments@ifac.org. They can also be faxed to the attention
of the IAASB Technical Director at +1-212-286-9570 or mailed
to the IAASB Technical Director at 545 Fifth Avenue, 14th Floor,
New York, NY 10017, USA. All comments will be considered a
matter of public record and will ultimately be posted on IFAC’s
website.
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Graham Meyer
NEW APPOINTMENTS
AUSTRALIA
NEW CEO FOR THE INSTITUTE OF CHARTERED ACCOUNTANTS IN AUSTRALIA
October 27, 2005 – The Institute of
Chartered Accountants in Australia,
announced the appointment of
Graham Meyer as Chief Executive
Officer. Graham will assume the role
as of 9th January 2006 and will bring
with him more than 25 years of
commercial acumen gained principally
in legal practice and the financial
services sector.
Announcing Graham’s appointment, President of the Institute
Stuart Black said Graham is a strategic thinker who is results
oriented.
“He has a history of involvement with professional bodies and
has worked at length in the legal, banking and financial services
Geoff Rankin
where he has had experience in lobbying and working with
Government,” he said.
“During his impressive career he has developed a record of being
a people motivator and managing cultural change in organisations.
He has also proven to be highly successful in achieving stakeholder
buy-in through his collegiate nature. I am confident that Graham
will provide strong leadership for the Institute and I look forward
to working with him in the New Year,” Mr Black said.
Graham began his career as a lawyer in Canberra and after ten
years of running his own practice, he moved into corporate law
and later into management positions with Advance Bank and then
AMP. He has worked in Australia and overseas and most recently
held the post of Managing Director for AMP Sanmar Life
Insurance in India.
CPA AUSTRALIA APPOINTS NEW CHIEF EXECUTIVE
CPA Australia’s Board of Directors is
pleased to announce the appointment
of Mr Geoff Rankin as its new chief
executive, with effect from 2 January
2006.
Mr Rankin was formerly managing
director and chief executive officer of
the Australian Leisure and
Hospitality Group Ltd (ALH), part of
the Foster’s Group of companies.
CPA Australia President Mark Coughlin said today that Mr
Rankin’s experience of the corporate sector, having been a senior
executive of the Foster’s Group for many years, would be an asset
to the organisation.
‘Mr Rankin is a superb cultural fit with CPA Australia. He has
enormous enthusiasm, excellent management skills and there is
strong alignment between him and the board on what needs to be
done strategically for CPA Australia in the current business
environment,’ Mr Coughlin said.
‘He has strong experience as a CEO and is an accomplished leader.
We are delighted to have him on board.’
Mr Rankin, who holds a Bachelor of Business (Accountancy) from
Queensland Institute of Technology, will be based in Melbourne.

Paul M.P. Chan
NEW APPOINTMENTS
HONG KONG
HONG KONG INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
ELECTS NEW PRESIDENT AND COUNCIL
Hong Kong, 16 December 2005 – The
Hong Kong Institute of Certified Public
Accountants elected Paul M.P. Chan as
president, and Mark C. Fong and Carlson
Tong as vice presidents for the year 2006
at its 33rd annual general meeting
(AGM) today. All three ran unopposed
for the positions.
Mr. Chan has served on the Institute’s Council for six years and
was elected vice president for three consecutive years from 2003
to 2005. Mr. Fong and Mr. Tong joined the Council in December
1998 and December 2000 respectively. Mr. Fong was also a vice
president in 2005.
Mr. Chan is managing partner of Paul Chan & Partners and
practising member director of PCP CPA Ltd. He joined the
Council in December 1999 and has served on various committees,
including the taxation committee, which prepares budget
recommendations for the government, and the small and medium
practitioners committee, which initiated work on a new and less
burdensome financial reporting framework for small companies
introduced by the institute earlier this year.
Mr. Fong is the senior partner of Moores Rowland Mazars, while
Mr. Tong is partner-in-charge, audit, China and HKSAR for
KPMG.
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w e b s i t e s
WEBSITES OF CAPA MEMBERS
• CPA Australia
http://www.cpaaustralia.com.au
• The Institute of Chartered Accountants in Australia
http://www.icaa.org.au
• The Institute of Chartered Accountants of Bangladesh
http://www.icab-bd.org
• The Institute of Cost and Management Accountants of Bangladesh
http://www.icmab.org.bd
• The Canadian Institute of Chartered Accountants
http://www.cica.ca
• Certified General Accountants’ Association of Canada
http://www.cga-online.org
• The Chinese Institute of Certified Public Accountants
http://www.cicpa.org.cn
• Compagnie Nationale des Commissaires Aux Comptes
http://www.cncc.fr
• Conseil Superieur des l’Ordre des Experts-Comptables
http://www.experts-comptables.com
• Hong Kong Institute of Certified Public Accountants
http://www.hkicpa.org.hk
• The Institute of Chartered Accountants of India
http://www.icai.org
• The Institute of Cost and Works Accountants of India
http://www.myicwai.com
• The Japanese Institute of Certified Public Accountants
http://www.jicpa.or.jp
• Korean Institute of Certified Public Accountants
http://kicpa.or.kr
• Malaysian Institute of Accountants
http://www.mia.org.my
• Institute of Chartered Accountants of Nepal
http://www.ican.org.np
• Institute of Chartered Accountants of New Zealand
http://www.icanz.co.nz
• The Institute of Chartered Accountants of Pakistan
http://www.icap.org.pk
• The Institute of Cost and Management Accountants of Pakistan
http://www.icmap.com.pk
• Philippine Institute of Certified Public Accountants
http://www.picpa.com.ph
• Institute of Professional Accountants of Samara Region
http://www.sipu.org.ru
• The Institute of Chartered Accountants of Sri Lanka
http://www.icasrilanka.com
• Association of Accounting Technicians of Sri Lanka
http://www.aatsl.lk
• Association of Accounting Technicians Limited
http://www.aat.org.uk
• Hong Kong Association of Accounting Technicians
http://www.hkaat.org.hk
• The Association of Chartered Certified Accountants
http://www.accaglobal.com

Gordon M. Macwhinnie
September 1976 - October 1979 (Hong Kong)
Eduardo M. Villanueva
October 1979 - November 1983 (Philippines)
Niladri K. Bose
November 1983 - May 1985 (India)
John O. Miller
May 1985 - November 1986 (Australia)
Hiroshi Kawakita
May 1986 - May 1988 (Japan)
Rex A. Anderson
May 1988 - September 1989 (New Zealand)
Taesik Suh
September 1989 - October 1991 (Korea)
William Mercer
October 1991 - September 1993 (Canada)
January 19-21, 2006
ICAI International Conference
Venue: Mumbai, India
Host: The Institute of Chartered Accountants of India
May 24, 2006
Various CAPA Committee Meetings
Venue: Nepal
Host: The Institute of Chartered Accountants of Nepal
May 25-26, 2006
CAPA Excom Meeting
Venue: Nepal
Host: The Institute of Chartered Accountants of Nepal
November 11-12, 2006
CAPA Excom Meeting & AGM
Venue: Istanbul, Turkey
PRESIDENTS
Douglas C. Oxley
September 1993 - April 1995 (Hong Kong)
Soon Kwai Choy
April 1995 - October 1996 (Malaysia)
Robert J. C. Jeffery
October 1996 - October 1998 (Australia)
Carlos R Alindada
October 1998 - November 2000 (Philippines)
Ranel T. Wijesinha
November 2000 – April 2002 (Sri Lanka)
Li Yong
April 2002 - October 2003 (China)
Robin Hamilton Harding
October 2003 – November 2005 (Canada)
Shozo Yamazaki
November 2005 – October 2007 (Japan)
CALENDAR
November 13-16, 2006
XVII World Congress of Accountants
Venue: Istanbul, Turkey
Host: Union of Chambers of Certified Public Accountants of
Turkey and Expert Accountants Association of Turkey
http://www.wcoa2006istanbul.org.tr
October 3-5, 2007
17th CAPA Conference
Venue: Osaka, Japan
Host: Japanese Institute of Certified
Public Accountants
For more information on the 17th
CAPA Conference, visit this
website. http://www.capaosaka.com
27

28
CAPA MEMBER ORGANISATIONS
As at May 2005
• Australia
CPA Australia
The Institute of Chartered
Accountants in Australia
• Bangladesh
The Institute of Chartered
Accountants of Bangladesh
The Institute of Cost and
Management Accountants
of Bangladesh
• Canada
The Canadian Institute of
Chartered Accountants
The Certified General
Accountants’ Association
of Canada
• China
Chinese Institute of Certified
Public Accountants
• Fiji
Fiji Institute of Accountants
• France
Compagnie Nationale des
Commissaires aux Comptes
Ordre des Experts Comptables
et des Comptables agrees
• Hong Kong, China
Hong Kong Institute of Certified Public
Accountants
• India
The Institute of Chartered
Accountants of India
The Institute of Cost and Works
Accountants of India
• Japan
The Japanese Institute of
Certified Public Accountants
• Korea
Korean Institute of Certified
Public Accountants
PA RT ICIPANTS
Robin A Hamilton Harding
President
Shozo Yamazaki
Deputy President
Leong Chew Poon
Chief Executive
• Australia
Geoff Brayshaw, Representative
Jim Dickson, Technical Advisor
• Bangladesh
Md. Ruhul Amin, Representative
• Canada
• China
Ye Xin, Representative
Han Weiwei, Technical Advisor
• Hong Kong
Kam Pok Man, Representative
Winnie Cheung, Technical Advisor
Patrick Tam, Technical Advisor
• India (ICAI)
K.S. Vikamsey, Representative
T.N. Manoharan, Technical Advisor
Ashok Haldia, Technical Advisor
• Malaysia
Malaysian Institute of Accountants
• Mongolia
Mongolian Institute of
Certified Public Accountants
• Nepal
Institute of Chartered
Accountants of Nepal
• New Zealand
Institute of Chartered
Accountants of New Zealand
• Pakistan
The Institute of Chartered
Accountants of Pakistan
The Institute of Cost and
Management Accountants
of Pakistan
• Philippines
Philippine Institute of Certified
Public Accountants
• Samoa
Samoa Society of Accountants
• Solomon Islands
Institute of Solomon Islands
Accountants
• Sri Lanka
The Institute of Chartered
Accountants of Sri Lanka
• Associate Members
Hong Kong Association
of Accounting Technicians
Association of Accounting
Technicians - Sri Lanka
Association of Accounting
Technicians - United Kingdom
• Affiliate Member
The Association of Chartered
Certified Accountants
Institute of Professional Accountants
of Samara Region
Pyongyang Office of Auditors
of the D.P.R. of Korea
9th Board Meeting of CAPA Limited
(66th Executive Committee Meeting)
9-10 November 2005, Seoul, Korea
• Japan
Shozo Yamazaki, Representative
Yoichi Ota, Technical Advisor
• Korea
In-Ki Joo, Representative
Taesik
Suh, Technical Advisor
Ki-Ryong Bae, Technical Advisor
• Malaysia
Abdul Rahim Hamid, Representative
Peter Lim, Technical Advisor
Ho Foong Moi, Technical Advisor
• Pakistan
Nasim Hyder, Representative
Imran Afzal, Technical Advisor
• Philippines
David L Balangue, Representative
Manuel Pascual, Technical Advisor
Pio D. Baconga, Technical Advisor
• Sri Lanka
P. Yohan S. Perera , Representative
Indrajith Fernando, Technical Advisor
• Non-Board Audit Committee Member
Roy Tiffin, New Zealand (ICANZ)
• Observers
Douglas C. Oxley, CAPA Past President
Soon Kwai Choy, CAPA Past President
Paul Pacter, Director of Standards for SMEs,
IASB
Dr Susela Devi, CAPA Consultant
Edward K.F. Chow, Hong Kong (HKICPA)
Prof. Judy Tsui, Hong Kong (HKICPA)
Brijmohan Sharma, India (ICWAI)
Ho-Bum Pyun, Commissioner, Board of Audit &
Inspection, Korea
Enkh-Amgalan Lanjav, Mongalia (MonICPA)
Nandinzaya Naljirmaa, Mongalia (MonICPA)
Narayan Bajaj, Nepal (ICAN)
Binod. B. Rajbhandary, Nepal (ICAN)
Benedict Morais, ACCA
Md. Nurul Hassan, SAFA President
Orieta Lau Ioc Ip, Macau (CRAC)
Carlos Miguel Amaral, Macau (CRAC)
Isabel Wong Leok Pui, Macau (CRAC)
Louisa Ho Mei Va, Macau
John Hunnicutt, USA
CAPA SECRETARIAT
Level 3, Dewan Akauntan, 2 Jalan Tun Sambanthan 3, 50470 Kuala Lumpur MALAYSIA
Tel : 603-2279 9380 Fax : 603-2274 9949
email: capa@po.jaring.my http://www.capa.com.my