What Do All Those Letters Mean

ICAEW, ACCA, CIMA - What Do All Those Letters Mean?

You might want to grab a hot drink before working through this !

First, what is an Institute?

Well, it's an organisation founded to promote a cause and/or for carrying on a particular type of work in a literary, scientific, or educational character. In some institutions examinations of an individuals appropriate relevant learning act as a barrier to entry. These must be passed before full membership and the right to use the designated letters is allowed. The accounting bodies operate such a system.

And what is a Charter?

That's a written grant of rights given by the sovereign to form the creation of an organisation, for example, a town borough, university or institute. It defines the written constitution of the organisations functions and its methods of governance.

Six accounting institutes have Royal Charters.

Chartered Institute of Management Accountants (CIMA)

When founded	1919, as the Institute of Cost & Works Accountants. It changed its name in 1986 to reflect the wider scope of modern management accounting now being provided by its members.
Purpose	To form a body for accountants who gained experience of cost control during WW1 in munitions factories.
Designatory Letters	ACMA – Associate Chartered Management Accountant ; FCMA – Fellow C.M.A.
Good for *	Applied management accounting techniques Operational measurement Change management Relationship and project management Marketing management Human resources management
Entry Qualifications **	Examinations Practical experience (min. 3 years) in business organisations leading to an approved career profile evidencing the application of management accounting skills learned. Test of professional competence in management accounting.

Escape link, go to "The CIMA Difference Summarised for a simpler comparison"

Institute of Chartered Accountants in England & Wales (ICAEW)

When founded	1880 as ICAEW but formed from regional institutes and societies the earliest starting in 1870.
Purpose	The first recorded accounting firm was founded in 1781 in Bristol undertaking audit work of merchants books. The 1831 Bankruptcy Act recognises accountants for the first time. Early work was mostly derived from insolvency and in 1862 a Companies Act recognised the Official Receiver. The accountants recognised the benefit of forming local societies or institutes to band together and promote their profession. Between 1870 and 1880 these local groups combined into several large institutes which became one under a Royal Charter from Queen Victoria.
Designatory Letters	ACA Associate of the Institute of Chartered Accountants in England & Wales; FCA Fellow CA.
Good for *	Taxation of corporate and non-corporate entities External audit and stakeholder assurance Stock exchange regulation and reporting Insolvency Financial accounting and reporting for statutory audits Forensic accounting Corporate Finance
Entry Qualifications **	Examinations. Training contract in a practice lasting 3 to 5 years. Completion of Initial Professional Development requirements. Completion of Structured Training in Ethics module.

Institute of Chartered Accountants in Scotland (ICAS)

When founded	1951 as ICAS but formed from regional institutes and societies the earliest starting in 1853, the first gaining its charter in 1854.
Purpose	Similar to ICAEW.
Designatory Letters	CA – Chartered Accountant
Good for *	Taxation of corporate and non-corporate entities External audit and stakeholder assurance Stock exchange regulation and reporting Insolvency Financial accounting and reporting for statutory audits Forensic accounting Corporate Finance
Entry Qualifications **	Examinations Training contract in a practice lasting 3 years. Completion of experience Achievement Log

Association of Chartered Certified Accountants (ACCA)

When founded	1984 as the Chartered Association of Certified Accountants but formed from other associations, the earliest starting in 1904. It gained its charter in 1974.
Purpose	To provide more open access to the accountancy profession than the existing accountancy organisations of the time.
Designatory Letters	ACCA - Associate Chartered Certified Accountants ; FCCA – Fellow C.C.A.
Good for *	Taxation of corporate and non-corporate entities External audit and stakeholder assurance Stock exchange regulation and reporting Insolvency Financial accounting and reporting for statutory audits
Entry Qualifications **	Examinations Three years practical experience achieving 13 out of 20 exam linked performance objectives.

Chartered Institute of Public Finance and Accountancy (CIPFA)

When founded	1973 as CIPFA but originates from the Corporate Treasurers and Accountants Institute formed in 1885. It gained its charter in 1973.
Purpose
Designatory Letters	CPFA – Chartered Public Financial Accountant
Good for *	Accounting issues specific to the public sector External audit Taxation Audit and stakeholder assurance Public finance and policies
Entry Qualifications **	Examinations

* As represented by the institute's emphasis in their 2007 examination structures (supplemented by information on their own websites) assessed against the 9 characteristics showing in a successful business.

** Without exemptions. All the Institutes offer exemptions in examinations and experience requirements if knowledge and experience has been gained elsewhere prior to joining as a student.

The sixth charter holder is the Institute of Chartered Accountants in Ireland (ICAI) whose profile is similar to the ICAEW and ICAS. These six bodies are represented by the Consultative Committee of Accountancy Bodies (CCAB) whose core objective is to promote and protect the qualified chartered accountant brand.

Other Accounting Organisations in the U.K.

Association of International Accountants

Association of Accounting Technicians (AAT)

Association of Authorised Public Accountants

Certified Accounting Technicians, part of ACCA

Institute of Financial Accountants

International Association of Bookkeepers

Other Professional Bodies In Business Finance

The Chartered Institute of Taxation

Institute of Credit Management

Chartered Financial Analysts Institute (U.S.)

Other Organisations You Might Have Heard Of

Financial Accounting Standards Board (FASB)

The Consultative Committee of Accountancy Bodies ( CCAB)

"The CIMA Difference Summarised for a simpler comparison"

Additions and Corrections

If any of the above is incorrect or unclear, please send an email to let us know and we'll rectify the situation. Contributions expanding on the content are welcome, particularly from the other professional bodies. Contributors will be credited.

Sources

Websites of ICAEW, ICAS, CIMA, ACCA and CIPFA; The CIMA difference – document produced by the University of Bath for CIMA in 2007 to compare the institutes examination syllabuses; Wikepedia

Disclaimer

This information is put together to aid non financial business managers understand the principle differences in the services offered by accountants of the charter holding bodies. It is taken from information freely available to the public and is believed to be a true summary of that information. However, no responsibility can be accepted for the outcomes of actions implemented using this information and users should complete further research before proceeding. Furthermore, no responsibility can be accepted if the interpretations above are subsequently shown to be untrue and/or cause harm to individuals or organisations.

Maybe John Moon could come up with some good ideas on how to re-present this page?