Accounting Profession and Professional Accounting Education in Japan - - PowerPoint PPT Presentation

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Accounting Profession and Professional Accounting Education in Japan - - PowerPoint PPT Presentation

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Accounting Profession and Professional Accounting Education in Japan Wednesday 26 April 2017 Yoshinori Kawamura 1 Table of Contents 1. Accounting Profession and Qualifications 2. JICPA Membership 3. IPD 3.1. Becoming a CPA 3.2. CPA Exam

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Accounting Profession and Professional Accounting Education in Japan

Yoshinori Kawamura

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Wednesday 26 April 2017

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  • 1. Accounting Profession and Qualifications
  • 2. JICPA Membership
  • 3. IPD

3.1. Becoming a CPA 3.2. CPA Exam 3.3. Pass Rates of CPA Exam 3.4. Successful Candidates of the CPA Exam 3.5. Professional Accountancy Education 3.6. Pass Rates of Final Assessment 3.7. Practical Experience

  • 4. CPD

4.1. CPD Requirements & Monitoring 4.2. CPD Curriculum 4.3. Encouraging CPD 4.4. How CPD units are earned 4.5. Examples of output-based approach

Table of Contents

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  • 1. Accounting Profession and Qualifications

 Certified Public Accountants (CPA) The Japanese Institute of Certified Public Accountants (JICPA) is a member body of IFAC. 29,246 are registered at the end of March 2017.  Certified Public Tax Accountants (CPTA) CPA is eligible to be registered as a CPTA. 76,269 are registered at the end of Oct 2016.  Other qualifications and examinations:  Business Skill Test in Bookkeeping (3 times a year, degrees 1-3), provided by Chamber of Commerce and

  • Industry. 560,000 applicants in total during 2016.

 Bookkeeping and Accounting Test for International Communication (BATIC), based on IFRS, in English

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  • 2. JICPA Membership

PAO Country Members Population One in … JICPA Japan 29,246 126,980,000 4,342 AICPA USA 412,000 321,600,000 781 CPA Canada Canada 200,000 35,830,000 179 ICAEW UK 144,000 65,110,000 452 ICAS UK 20,000 CA Ireland Ireland 21,000 4,640,000 221 HKICPA Hong Kong 38,000 7,310,000 192 SAICA South Africa 40,000 54,960,000 1,374 IDW Germany 13,000 82,180,000 6,322

Number of members - http://www.globalaccountingalliance.com/globalaccountingalliance/Alliance-Members Population - IMF - World Economic Outlook Databases (2016OCT)

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  • 2. JICPA Membership

88 8 4

Educational Background

B.A. Master's/Ph.D Other 20% 17% 16% 12% 3% 0% 5% 10% 15% 20% 25% 20s 30s 40s 50s 60s

Female CPAs

77% 60% 46% 40% 18% 8% 3% 11% 26% 46% 68% 78% 0% 20% 40% 60% 80% 100% 20s 30s 40s 50s 60s 70s

Auditors/Tax Accountants

CPAs in the audit firms CPAs Registered as Tax Accountants

As of 31 March 2017

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FSA (CPAAOB) Multiple Choice Test Essay Test Professional Accountancy Education (3 years) Final Assessment JFAEL JICPA Practical Experience (more than 2 years) CPA FSA JICPA

Register with JICPA

Associate Full JICPA Membership

  • 3. IPD 3.1. Becoming a CPA

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CPA Exam

________ FSA: Financial Services Agency CPAAOB: Certified Public Accountants and Auditing Oversight Board JFAEL: Japan Foundation for Accounting Education and Learning

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  • CPA Exam is open to non-accounting majors
  • Subjects and Timetable

(*) Select one subject from four electives below ■Business administration ■Economics ■Civil code ■Statistics

  • 3.2. CPA Exam

Date Start End Hour Subjects Multiple Choice Test Sunday, 12/6/2015 5/29/2016 9:30 10:30 1:00 Business law 11:30 12:30 1:00 Managerial accounting 14:00 15:00 1:00 Auditing 16:00 18:00 2:00 Financial accounting and reporting Essay Test Friday, 8/19/2016 10:30 12:30 2:00 Auditing 14:30 16:30 2:00 Tax law Saturday, 8/20/2016 10:30 12:30 2:00 Financial accounting and managerial accounting 14:30 17:30 3:00 Sunday, 8/21/2016 10:30 12:30 2:00 Business law 14:30 16:30 2:00 Selective (*)

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  • 3.3. Pass Rates of CPA Exam

961 1,148 1,262 1,378 1,308 1,372 2,695 3,024 1,916 1,923 1,447 1,301 1,149 1,076 1,030 1,098 8.0% 8.6% 8.4% 8.4% 8.5% 8.4% 14.8%15.3% 9.4% 7.6% 6.4% 7.4% 8.8% 10.0%10.2% 10.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 5,000 10,000 15,000 20,000 25,000 30,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Pass Rates of CPA Exam

Applicants Successful Applicants Pass Rate

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  • 3.4. Successful Candidates of the CPA

Exam

41.7 26.6 17.9 13 0.8

Occupation

Students

  • Prep. School Students

Employed Unemployed Other 47.4 29.2 11.1 3.6 8.7

Academic Background

B.A. Undergraduates Master's/Ph.D Graduate Students Other

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  • 3.5. Professional Accountancy Education

 Term: 3 years (can be shortened based on pre-Exam practical experiences)  Administration: Japan Foundation for Accounting Education and Learning (JFAEL)  Those who can sit for Final Assessment (given once a year) １．Lectures 270 credits to be earned ２．Interim assessments 10 interim assessments 60 or more credits in total, and 4 or more credits in each assessment should be earned ３．Subject studies 6 subject studies required 36 or more credits in total, and 4 or more credits in each study  Costs: JPY 255,000 (approximately USD 2,550), Admission fee JPY 15,000 (USD 150)  Held mainly in the evening and on Saturdays

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  • 3.6. Pass Rates of Final Assessment

61.5%61.6%62.0% 65.4%65.2% 68.2% 69.1% 70.3% 67.2%67.0% 65.4%65.6% 61.9% 65.3% 66.6% 64.3% 56.0% 58.0% 60.0% 62.0% 64.0% 66.0% 68.0% 70.0% 72.0% 500 1000 1500 2000 2500 3000 3500 4000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Pass Rates of Final Assessment

Applicants Successful Candidates Pass Rate

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  • Candidates are required to gain relevant practical

experience by working in accounting/audit firms or in industry for a minimum of two years.

  • The JICPA provides assistance for candidates in obtaining

their positions in firms or businesses.

  • 3.7. Practical Experience
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  • Measurement: Input-based approach
  • Complete at least 120 credits in each rolling three-year period; and
  • Complete at least 20 credits in each year
  • Mandatory CPE credits
  • 2 credits in professional ethics, and 2 credits in tax are mandatory for

all CPAs.

  • 6 credits in auditing, of which 2 credits in fraud case study, for audit

practitioners

  • CPE fulfilment

Year ended 31 March 2016: 98.6% (Prior year: 98.3%)

  • Sanctions if a CPA fails to fulfil:
  • Publication of the names of the CPA who did not comply
  • Suspension of JICPA membership, and requests to the FSA for

administrative sanctions, etc.

____ CPE: Continuing Professional Education

  • 4. CPD 4.1. CPD Requirements & Monitoring
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  • Ethics
  • Accounting
  • Auditing
  • Tax
  • Consulting
  • Skill

“CPE Curriculum” is reviewed annually by the JICPA’s “CPE Committee” to incorporate new standards, changes in tax laws, new IT topics, etc.

  • 4.2. CPD Curriculum
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  • 4.3. Encouraging CPD
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  • 4.4. How CPD credits are earned

77.6 17 0.4 5

CPD by Education Style

Seminar Trainings Self Studies Writings Lectures 6.7 11.1 37.3 34.8 10.1

Seminar Trainings by Provider

JICPA Headquarters JICPA Regional Audit Firms e-Learnings by JICPA/Firms Other Orgranizations

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  • Short essays are required after self-

studies.

  • Multiple-choice tests after e-learnings.
  • CPE credits are awarded to outputs,

including writing articles and books and giving lectures.

  • Audit firms utilize group discussion and

presentation after learning activities.

  • 4.5. Examples of output-based approach
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Lastly… Should you have any questions and/or comments, please contact…

  • Yoshinori Kawamura

ykawamur@waseda.jp

  • Shinji Takada

shinji.takada@jp.ey.com Thank you for your attention.