Yoseph Asmelash

UNCTADUNCTAD--ISAR ISAR Model Accounting CurriculumModel Accounting Curriculum

Yoseph AsmelashYoseph AsmelashUNCTADUNCTAD

IFRS Teaching SymposiumIFRS Teaching SymposiumRio de JaneiroRio de Janeiro

25 October 201125 October 2011

UNCTADUNCTAD--ISAR Model ISAR Model

Accounting Curriculum Accounting Curriculum

Outline Outline

Introduction to UNCTADIntroduction to UNCTAD--ISAR and the Model ISAR and the Model

Accounting Curriculum (MC)Accounting Curriculum (MC)

Main features of the MCMain features of the MC

Outlook and concluding remarksOutlook and concluding remarks

Introduction Introduction UNCTADUNCTAD--ISARISAR

ISAR stands for ISAR stands for -- the the Intergovernmental Working Group Intergovernmental Working Group

of Experts on International Standards of Accounting and of Experts on International Standards of Accounting and

Reporting.Reporting.

Was established by the Economic and Social Was established by the Economic and Social

Council (ECOSOC) of the United Nations in Council (ECOSOC) of the United Nations in

October 1982 October 1982 -- to promote reliable and to promote reliable and

comparable corporate reporting.comparable corporate reporting.

Introduction Introduction UNCTADUNCTAD--ISARISAR

continuedcontinued

ISAR is composed of 34 Member States of the ISAR is composed of 34 Member States of the United Nations elected by ECOSOC:United Nations elected by ECOSOC:

9 African9 African

7 Asian7 Asian

6 Latin American and Caribbean6 Latin American and Caribbean

3 Eastern European3 Eastern European

9 Western European and other.9 Western European and other.

Introduction UNCTADIntroduction UNCTAD--ISARISAR

continuedcontinued

Is serviced by the United Nations Conference Is serviced by the United Nations Conference

on Trade and Development (UNCTAD) based on Trade and Development (UNCTAD) based

in Geneva.in Geneva.

Has so far held 28 annual sessions. Has so far held 28 annual sessions.

Close to 300 experts from about 90 countries Close to 300 experts from about 90 countries

participate at the annual session of ISAR.participate at the annual session of ISAR.

Introduction Introduction UNCTADUNCTAD--ISAR ISAR

continuedcontinued Over the years UNCTADOver the years UNCTAD--ISAR has issued a ISAR has issued a

number of guidance documents, including:number of guidance documents, including:Environmental Accounting and ReportingEnvironmental Accounting and Reporting

Model Accounting CurriculumModel Accounting Curriculum

Accounting and Financial Reporting by SMEsAccounting and Financial Reporting by SMEs

Corporate Governance DisclosureCorporate Governance Disclosure

Corporate Responsibility ReportingCorporate Responsibility Reporting

Practical Implementation of IFRSPractical Implementation of IFRS

CapacityCapacity--building for highbuilding for high--quality corporate quality corporate reporting (current work programme)reporting (current work programme)

Introduction Introduction UNCTADUNCTAD--ISAR ISAR

continuedcontinued

Model Accounting Curriculum Model Accounting Curriculum --

BackgroundBackground

Accounting educationAccounting education featured in the ISAR featured in the ISAR

agenda as early as 1985 agenda as early as 1985 ((at its fourth session).at its fourth session).

In Feb 1999, the 16th session of ISR, adopted In Feb 1999, the 16th session of ISR, adopted

the the Guidelines on National Requirements for the Guidelines on National Requirements for the

Qualification of Professional AccountantsQualification of Professional Accountants, including a , including a

detailed model curriculum (MC).detailed model curriculum (MC).

In 2003 ISAR In 2003 ISAR publishedpublished a a revisedrevised MC.MC.

Model Accounting Curriculum Model Accounting Curriculum Main Main

Features Features -- continuedcontinued

The MC The MC describes for the international communitydescribes for the international community

the technical subject areas that a candidate needs to the technical subject areas that a candidate needs to

master to become a professional accountant.master to become a professional accountant.

Is Is not a standard or a rulenot a standard or a rule. Is a tool for facilitating . Is a tool for facilitating

implementation of global requirements.implementation of global requirements.

ISAR recognized that the MC is ISAR recognized that the MC is only part of a only part of a

systemsystem of qualification requirements for of qualification requirements for

professional accountants.professional accountants.



Aligned with the IAESBs IESs.

Emphasizes substantive issues over detailed procedural complexities.

Incorporates strong professional, societal, environmental and ethical content.

Integrates knowledge acquired throughout accounting and business modules.

Leaves for member States to decide the amount of time required for completing the components of the MC.



The Model Curriculum consists of :The Model Curriculum consists of :

6 Modules on 6 Modules on Organization and Business KnowledgeOrganization and Business Knowledge

1 Module on 1 Module on Information TechnologyInformation Technology

10 Modules on 10 Modules on Accounting, Auditing, Taxation and Accounting, Auditing, Taxation and

Related KnowledgeRelated Knowledge

7 Modules on 7 Modules on advanced topicsadvanced topics



Core modules are Core modules are required required components of the MC.components of the MC.

Advanced modules are optional Advanced modules are optional available for available for candidates who wish to gain an candidates who wish to gain an inin--depth knowledgedepth knowledge of of specialized areas such as financial reporting, specialized areas such as financial reporting, management accounting, taxation, notmanagement accounting, taxation, not--forfor--profit profit organization, insolvency, advanced auditing, public organization, insolvency, advanced auditing, public sector financial management. sector financial management.

Internship is an optional module for candidates seeking Internship is an optional module for candidates seeking qualification through a universityqualification through a university--based system.based system.

Model Accounting Curriculum Model Accounting Curriculum ImpactImpact

The MC is being implemented in different regions of the The MC is being implemented in different regions of the world. world. ExamplesExamples::

The The Asian Development BankAsian Development Bank used the MC in used the MC in strengthening accounting education in its member strengthening accounting education in its member countries.countries.

In the In the PhilippinesPhilippines -- a majority of the universities in the a majority of the universities in the country revised their undergraduate accountancy curricula country revised their undergraduate accountancy curricula to comply with the ISAR Global Curricula. to comply with the ISAR Global Curricula. Authors of Authors of local accounting textbookslocal accounting textbooks used the ISAR Global used the ISAR Global Curricula and Guideline as guidelines in developing new Curricula and Guideline as guidelines in developing new textbooks.textbooks.

Model Accounting Curriculum Model Accounting Curriculum Impact Impact

Examples continued Examples continued

UgandaUganda The professional accountancy education The professional accountancy education programme used the MC by covering: programme used the MC by covering:

Technical accountancy skills Technical accountancy skills

Information technologyInformation technology

Communication skillsCommunication skills

KenyaKenya The Accountants and Secretaries National The Accountants and Secretaries National Examinations Board considered the MC in prescribing Examinations Board considered the MC in prescribing minimum education requirements for entry into the minimum education requirements for entry into the accountancy professionaccountancy profession



In Brazil In Brazil FUCAPE Business SchoolFUCAPE Business School is one of the pioneers on is one of the pioneers on

implementing the MC.implementing the MC.

In the context of its Reports on Observance of Standards and In the context of its Reports on Observance of Standards and

Codes (ROSCs) on Accounting and Auditing, the Codes (ROSCs) on Accounting and Auditing, the World BankWorld Bank

has been encouraging Latin American countries to upgrade their has been encouraging Latin American countries to upgrade their

curricula on the basis of the MC. curricula on the basis of the MC.

In particular, the World Bank used the MC In particular, the World Bank used the MC as a benchmarkas a benchmark to to

assess university accounting curricula of assess university accounting curricula of Costa RicaCosta Rica, , El SalvadorEl Salvador, ,

GuatemalaGuatemala, , HondurasHonduras and and PanamaPanama and to implement capacityand to implement capacity--

building projects to assist the universities meet the requirements building projects to assist the universities meet the requirements

in the MCin the MC..



Czech RepublicCzech Republic The MC was one of the documents The MC was one of the documents that was considered in developing the that was considered in developing the education and education and certification systemcertification system of Union of Accountants.of Union of Accountants.

EstoniaEstonia The MC was utilized for establishing The MC was utilized for establishing educational requirementseducational requirements for entry into the accountancy for entry into the accountancy profession.profession.

The MC was used as a benchmark to assess the detailed The MC was used as a benchmark to assess the detailed Examination Content OutlinesExamination Content Outlines of a CIPA certification of a CIPA certification programme in programme in UkraineUkraine..

There are other examples too.There are other examples too.

Model Accounting Curriculum Model Accounting Curriculum Outlook and Outlook and

concluding remarksconcluding remarks

Since the publication of the MC significant progress has Since the publication of the MC significant progress has been made in strengthening accounting education.been made in strengthening accounting education.

Recent ISAR sessions have highlighted the need for Recent ISAR sessions have highlighted the need for capacitycapacity--buildingbuilding in response to the increasing pace of in response to the increasing pace of globalisation and proliferation of global corporate globalisation and proliferation of global corporate reporting standards and codes.reporting standards and codes.

The MC is an important component of the The MC is an important component of the human human development pillardevelopment pillar of the capacityof the capacity--building framework.building framework.

The MC is a The MC is a living documentliving document and future work could be and future work could be considered in this context. considered in this context.

UNCTADUNCTAD--ISAR CapacityISAR Capacity--building building Framework Framework Due ProcessDue Process

UNCTADUNCTAD--ISARISAR MemberMember StatesStates

Consultations with key global, regional and national players

Intergovernmental Consensus

Contents of theContents of the CBFCBF

The CBF is structured into four main pillarsThe CBF is structured into four main pillars::

Legal and RegulatoryFramework

InstitutionalFramework

HumanCapacity

Capacity Building Process

CapacityCapacity--building Framework building Framework -- MatrixMatrix

A

B

C

Pillars

D

Outlook and concluding remarks Outlook and concluding remarks

continuedcontinued

It has been over 7 years since the MC was revised. It has been over 7 years since the MC was revised. Significant developments have occurred since.Significant developments have occurred since.

The IAESB is currently revising its standards The IAESB is currently revising its standards including IES 2 including IES 2 Content of Professional Accounting Content of Professional Accounting Education Programmes.Education Programmes.

Therefore, the MC is now due for revision and Therefore, the MC is now due for revision and updating and ISAR will be prepared to take it up when updating and ISAR will be prepared to take it up when funds become available.funds become available.

UNCTAD looks forward to working on this project in UNCTAD looks forward to working on this project in cooperation withcooperation with all interested organizations including, all interested organizations including, the IAESB, the Professional Accountancy Organization the IAESB, the Professional Accountancy Organization Development Committee of IFAC, the World Bank as Development Committee of IFAC, the World Bank as well as all interested participants present here today.well as all interested participants present here today.

For further information:For further information:

Please visit the ISAR website at: Please visit the ISAR website at:

http://www.unctad.org/isarhttp://www.unctad.org/isar

UNCTADUNCTAD--ISAR Model ISAR Model Accounting CurriculumAccounting Curriculum

Thank you.Thank you.

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Yoseph Asmelash