ACCA IFRS program expected to get adversely affected by ICAI's new course

At this point in time, most of us would know about the change in the ICAI course curriculum to include Global Financial Reporting Standards (one of the optional papers) as a complete examination at CA final level. Interestingly, the Group 1 still has Financial Reporting paper as a part of ICAI's curriculum where will include IND-AS (minor changes against IFRS). Therefore, a bigger likelihood exists that most of the students will opt for the Global Financial Reporting Standards as a preferred option to clear their examination.

This may adversely impact the number of participants looking to gain knowledge of IFRS through a recognized qualification, which so far, was offered by the ACCA in form of Diploma in IFRS. A CA student or member may not be willing to study anything additionally beyond the CA curriculum if the course content itself comprises of a global content.

There is a likelihood further that the ICAI picks up questions as tested in the ACCA IFRS curriculum, that however, will only be clarified after the ICAI publishes its course content and the examination pattern for May 2018 examination.

The above change in the ICAI course is also going to bring ICAI's course at par with ACCA to some extent to be offering global curriculum in IFRS and other domains. Interestingly, the other optional papers like Risk Management etc. are likely to be influenced by the other global programs like FRM or CFA. This is likely to strengthen the ICAI's hold in other domains including global accounting and risk management. There is yet another option of Case study examinations, which directly affects the courses like CIMA, ICAEW or even ACCA's current testing patterns. This is likely to play a spoilsport for these Institutions which are trying to establish their presence in the growing Indian economy.

Having stated all of the above, ACCA in the past has been able to bring its best on the table in the past. The UK, which already has more than 5 Chartered Institutions in the accounting domain (including ICAEW, ACCA and CIMA), has seen wider acceptance of ACCA qualification, despite being a private Institution. So, ACCA will be monitoring the changes in ICAI course cautiously and will ensure that it makes its presence felt seriously by the CIMA and now the ICAI.

Disclaimer: The views of the author on the topic are personal and do not intend to disrepute any Institution, qualification or individual.

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ACCA Professional Level Papers: Its never too late to adapt Technology

ACCA took the important step to announce the merger of the two overlapping, related papers - P1 (Ethics) and P3 (Business Analysis). Comes 2018, these papers will be merged into a single examination of 4 hours, blending the case study environment.

While this was expected to take place soon after CIMA introduced all its examinations on Computer Based Assessments (CBA) model and a case study at all levels of the profession, ACCA had no choice but to consider the role of case study in the theory papers. The business acumen of students into the examination to make it highly competitive and valuable experience was a mandatory requirement for the ACCA. Interestingly, it will be more challenging for tutors to bring the right set of teaching methodologies to ensure that their students are able to learn and adapt the new ACCA examination methodology.

While this happens towards the end of 2018, it is also possible that ACCA may consider the switch over of other papers in the similar mode too over a period of time. It may be worth considering by the ACCA to have the computer-assessed results even for case study examinations, like the way it is done in the CPA US examination.

After all, Information Technology is certain to change the world, and conveniently, the examination bodies style of doing their business. Wondering that technology can replace entirely the tuition partners or for sure publishers. It is not a question of how, but a question of how soon? We are sure to see some big changes evolving in the immediate future in education and certain to impact the large Institutions like the ACCA signicantly.

The future is uncertain, but it will certainly become past!

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What is the pass rate for ACCA exams?

Before I started to teach ACCA, I was surprised to know that the average pass rate for ACCA papers is around 40% for Professional level papers and even higher for Fundamental level papers. That means that every 4th person of 10 writing the ACCA examination is likely to clear the examination.

As a Chartered Accountant from India, it was a huge surprise for me and a tough thing to absorb. After all, how shall an Institution be able to sustain the demand-supply and value for the profession in the industry if the examination was too easy to clear. The ICAI (India) would give a result of around 8% or less on an average.

However, I sensed that there are a couple of logical reasons around the pass results which ACCA may take into consideration, and these have nothing to do with the examination being easier, but to do with the examiner's approach.

Firstly, the average cost of an examination is Sterling 100 or above, therefore a person is only likely to book or plan an examination only after he or she is fully prepared to do the examination that is relatively costlier.

This nowhere means that a student writing the examination like the CA from India is not prepared for the examination at all. It is just that the Institution restricts the results and there is a likelihood that a student, despite doing very well in an examination, is likely to fail the examination. However, there may be many students who attempt the CA examination due to less costs of exams, despite not being fully prepared. This is certain to bring the pass results down.

ACCA, as an Institution, highly focuses on student progression, and therefore, carries a view that if a student is able to express his thoughts well, in a logical manner, he or she should be rewarded marks for every step done correctly by him. Although, with online examinations, a significant proportion of MCQs being introduced at the fundamental level, the results may decline a bit in near future since if one step goes incorrect, the entire question is considered incorrect, and therefore, no marks are rewarded. In either case, ACCA may revisit the types of questions after it analysis the pass rates with the MCQs options. This again does not mean that ACCA is likely to reduce the standard of the examination.

In case of a CA qualification, for example, an examiner in general may not be willing to award the marks, if the approach followed by a student differs from suggested answers, and therefore, is penalized.

Additionally, ACCA as a global Institution, has a significant larger reach worldwide, and therefore sees that its members' concentration in several markets is limited, and therefore, is pleased to carry a flexibility in rewarding marks for subjective questions - if attempted in a logical and structured manner. In near future at least, this trend is likely to remain, and therefore, a person who is pursuing the qualification, should aim at completion thereof at the earliest possible time to take advantage of the ACCA's approach.

Disclaimer: The views on the above topic, solely present the opinion of the author.

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