It seems that the ICAEW will soon find itself at the eye of the Northern Wreck storm, as the government has asked it to advise on who (firm of individual) should be appointed as "adviser" for determining the "value" of Northern Wreck.
The bill to nationalise the bank, the Northern Rock Compensation Scheme Order, notes that the ICAEW will have the final say on who will act as "adviser":
"Before making any appointment the Treasury must consult the Institute of Chartered Accountants in England and Wales."
Given that the valuation will determine the compensation that the increasingly desperate shareholders are to receive, the role of "adviser" is considered to be a poisoned chalice.
Whoever accepts the role is likely to find themselves the subject of litigation by the shareholders, keen to take as much from the wreckage as possible.
Phrases "touch it" and "bargepole" are rumoured to have been used by possible contenders.
Good luck to the ICAEW on this.
I am happy to offer my valuation services, and save everyone time trouble and expense.
After due thought and consideration, the estimated value of the Wreck is approximately zero!
Friday, February 29, 2008
Monday, February 25, 2008
Diluting The Brand
The ICAEW, having failed to dilute the brand by merging, has found another way to dilute it. This time via the old trick of dumbing down the exams, and extending time period needed to qualify.
Rob Lewis quotes Raymond Madden, the Institute's executive director of learning and development:
"Instead we said you can take as long as you like, but you can only attempt each paper a maximum number of four times.
Theoretically you could do one paper a year and take fifteen years, but the chances are you wouldn't get a job with a firm. The market manages [the time-bar] for us."
He added:
"We are more flexible than we used to be..."
Lewis notes that the 12 papers that need to be sat at the professional stage can be taken anywhere in the world by home-studiers, who have never done a day's accounting in their life.
Students can take exams at their own convenience.
The desire of the ICAEW to grow in size is undermining the value of the qualification.
The ICAEW should remember that strength comes from quality, not quantity.
Rob Lewis quotes Raymond Madden, the Institute's executive director of learning and development:
"Instead we said you can take as long as you like, but you can only attempt each paper a maximum number of four times.
Theoretically you could do one paper a year and take fifteen years, but the chances are you wouldn't get a job with a firm. The market manages [the time-bar] for us."
He added:
"We are more flexible than we used to be..."
Lewis notes that the 12 papers that need to be sat at the professional stage can be taken anywhere in the world by home-studiers, who have never done a day's accounting in their life.
Students can take exams at their own convenience.
The desire of the ICAEW to grow in size is undermining the value of the qualification.
The ICAEW should remember that strength comes from quality, not quantity.
Monday, February 11, 2008
The New VP
Congratulations to Gerald Russell, the new Vice President of the ICAEW, who won last week's vote held by council.
For reasons that are unclear to me, the ICAEW official site does not make any mention of the election or of Gerald's victory.
As I said before, it is also a mystery as to why the ICAEW does not allow the ordinary ICAEW members to vote in this election.
For reasons that are unclear to me, the ICAEW official site does not make any mention of the election or of Gerald's victory.
As I said before, it is also a mystery as to why the ICAEW does not allow the ordinary ICAEW members to vote in this election.
Wednesday, February 06, 2008
Vice Presidential Election
Good luck to the three candidates standing for the position of Vice President of the ICAEW.
They are:
- Gerald Russell, senior partner in the London office of Ernst & Young
- Ian Hayes, managing director at Vataxworld London
- Paul Wagstaff, client partner at HLB Vantis Audit in Wokingham.
Voting closed yesterday, and the successful candidate will be announced at the ICAEW council meeting this Thursday.
The new vice president will take up the role in June. He will then become deputy president after 12 months in office, before being elevated to the post of president of the institute in 2010.
It is a pity, and indeed a mystery, as to why the membership of the ICAEW are not allowed by council to vote for the vice president.
Anyone would think that council and the ICAEW are not interested in the views and opinions of the membership, but only interested in taking our subscriptions from us each January.
Surely not?
Is this an example of effective corporate governance?
They are:
- Gerald Russell, senior partner in the London office of Ernst & Young
- Ian Hayes, managing director at Vataxworld London
- Paul Wagstaff, client partner at HLB Vantis Audit in Wokingham.
Voting closed yesterday, and the successful candidate will be announced at the ICAEW council meeting this Thursday.
The new vice president will take up the role in June. He will then become deputy president after 12 months in office, before being elevated to the post of president of the institute in 2010.
It is a pity, and indeed a mystery, as to why the membership of the ICAEW are not allowed by council to vote for the vice president.
Anyone would think that council and the ICAEW are not interested in the views and opinions of the membership, but only interested in taking our subscriptions from us each January.
Surely not?
Is this an example of effective corporate governance?
Tuesday, February 05, 2008
Best Practice
It seems that, according to Dennis Howlett, the ICAEW does not believe that its members need to follow best practice.
Quote:
"Best practice does not have to be followed by members."
Has the ICAEW taken leave of its senses?
Quote:
"Best practice does not have to be followed by members."
Has the ICAEW taken leave of its senses?
Friday, February 01, 2008
No To Merger
CIMA CEO, Charles Tilley, has emphatically told Accountancy Age that there will be no further plans for a merger with any other accounting body.
Quote:
"That is absolutely a no.
There is no merger on the horizon."
It is good to know that the accounting bodies have finally got the message from their respective memberships that mergers are not wanted.
Quote:
"That is absolutely a no.
There is no merger on the horizon."
It is good to know that the accounting bodies have finally got the message from their respective memberships that mergers are not wanted.
Monday, January 28, 2008
Irony
The results of the "Old Professional Stage" ICAEW December 2007 - Professional stage examinations make interesting reading.
In as much as the lowest pass rate (51.1%), was in the Accounting Paper.
Somewhat ironic for a profession of accountants.
In as much as the lowest pass rate (51.1%), was in the Accounting Paper.
Somewhat ironic for a profession of accountants.
Monday, January 14, 2008
Look East
The ICAEW is looking Eastwards as it attempts to increase its size. It has announced a deal with the Chinese Institute of Certified Public Accountants (CICPA) to award credits to each other's examinations.
An agreement will mean that CICPA members, who have passed all five subjects of the CPA Uniform Exams, will be awarded credits in the professional stage of the ICAEW's ACA qualification.
Richard Dyson, ICAEW president, said the agreement between the two parties is "one more step forward in helping to create a global accountancy profession".
Size of course is not everything, quality is the key issue.
Dyson, as if anticipating the above comment, went on to say:
"By providing mutual credits for prior learning, we are making it simpler for members of both the ICAEW and CICPA to achieve qualifications which will enable them to work in each other’s territories."
So long as this does not dilute the ICAEW brand, or expose the ICAEW to ethical problems, then in theory this agreement should cause the ICAEW no problems.
The devil is in the detail.
An agreement will mean that CICPA members, who have passed all five subjects of the CPA Uniform Exams, will be awarded credits in the professional stage of the ICAEW's ACA qualification.
Richard Dyson, ICAEW president, said the agreement between the two parties is "one more step forward in helping to create a global accountancy profession".
Size of course is not everything, quality is the key issue.
Dyson, as if anticipating the above comment, went on to say:
"By providing mutual credits for prior learning, we are making it simpler for members of both the ICAEW and CICPA to achieve qualifications which will enable them to work in each other’s territories."
So long as this does not dilute the ICAEW brand, or expose the ICAEW to ethical problems, then in theory this agreement should cause the ICAEW no problems.
The devil is in the detail.
Tuesday, December 18, 2007
Datagate
ICAEW chief executive Michael Izza, reacting to the release of the interim report by PwC CEO Kieran Poynter on "Datagate", said:
"In tandem with the next stage of this review, we believe government should look at the day-to-day operation of HMRC and ensure that it is properly resourced to deliver.
Until this happens, there should be a moratorium on any further job cuts."
Wrong!
The most effective way to turn around the underperforming and failing HMRC is to simplify the tax system, and hence simplify the bureaucracy and cut the staff/hierarchies within the HMRC.
"In tandem with the next stage of this review, we believe government should look at the day-to-day operation of HMRC and ensure that it is properly resourced to deliver.
Until this happens, there should be a moratorium on any further job cuts."
Wrong!
The most effective way to turn around the underperforming and failing HMRC is to simplify the tax system, and hence simplify the bureaucracy and cut the staff/hierarchies within the HMRC.
Thursday, December 13, 2007
A Contradiction In Terms
On the assumption that the Financial Reporting Council (FRC) really is the independent UK regulator responsible for promoting confidence in corporate reporting and governance.
How can Eric Anstee's (ex CEO of the ICAEW and newly appointed chairman of IFA) appointment as a non-executive director of the new board of the Financial Reporting Council provide a leg up for IFA, as IFA president Professor David Hunt states?
Independent bodies do not provide leg ups.
How can Eric Anstee's (ex CEO of the ICAEW and newly appointed chairman of IFA) appointment as a non-executive director of the new board of the Financial Reporting Council provide a leg up for IFA, as IFA president Professor David Hunt states?
Independent bodies do not provide leg ups.
Subscribe to:
Posts (Atom)