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CIMA quits CCAB

Posted by John Stokdyk PM | on Wed, 02/03/2011 - 13:49 7302 9 comments

The Chartered Institute of Management Accountants (CIMA) announced today that it intends to withdraw from the Consultative Committee of Accountancy Bodies (CCAB).

With 168,000 members in 168 countries, CIMA now claims to be the world’s largest management accountancy body. In a short statement, the institute said the move would allow it to focus resources where they have the largest benefits for members and students, plus wider public and business interests.

"CIMA’s agenda is to develop and support the role of financially qualified business leaders who work in organisations around the world. Therefore the CCAB, with its emphasis on audit, has diminishing relevance for the institute. CIMA sees the UK’s Financial Reporting Council (FRC) as the independent statutory regulator for the sector and plans to play an active role in both the FRC and International Federation of Accountants (IFAC) to pursue its strategic, global ambitions where relevant to our stakeholders,’ said CIMA's executive director for governance and professional standards Robin Vaughan.

The CCAB is an umbrella organisation that brings together the ICAEW, ICAS, ACCA, CIPFA and ICAI (Ireland). The body describes itself as a "forum in which matters affecting the profession as a whole can be discussed and co-ordinated" that enables the profession to speak with a unified voice to government.

With their chartered status and co-ordinated approaches to training and disciplinary matters, the CCAB bodies have traditionally enjoyed the cachet of being "proper" accountancy bodies. The CCAB also contributes in part to funding the FRC.

With CIMA breaking ranks and debates about protecting the term "accountant", questions will arise about other bodies' commitment to CCAB, and whether it will be able to withstand the financial fallout.

CCAB Is Dead

kenfrost | Wed, 02/03/2011 - 14:17 | Permalink

CCAB have not issued a press release since 2009!

It's dead.

http://stopthemerger.blogspot.com/2011/03/cima-leaves-ccab.html

Well that woke me up!

Sir Digby Chick... | Thu, 03/03/2011 - 10:17 | Permalink

I'd be interested to hear from other CIMA members on this. Is this going to devalue our qualification in any way?

I guess I've always felt that being part of the CCAB made CIMA stand out in the same way the ACCA and ICAEW are considered in the accounting community.

Sir Digby

heh heh! back to the bishop report anyone remember it?

david5541 | Thu, 03/03/2011 - 15:37 | Permalink

this will be a good omen for more talks like those under the bishop report in the 1970's heyday of current cost accounting..............

we have seen alot of behind the scenes consolidation amongst the tiny bodies some of whom have been subsumed into the ACCA or ICAEW with a hood or a wink.

and with the icaew root to membership open to other qualified accountants, its time we fought for the word ACCOUNTANT. Why not rename the CCAB the ACCOUNTANTS SOCIETY, like the Law society.

Aafter all solicitors serve all specialisms from city based freshfields to the local "saintly" criminal lawyers who are propared to work for legal aid and do long hours.

CIMA withdraws from stuffy body.

richardterhorst | Sat, 05/03/2011 - 07:50 | Permalink

Doubt whther CIMA will lose any stature by quitting as it is a WORLD recognised and well respected qualification.

Don't tell me anal auditors are going to start another battle for the term accountant. Grow up please.

CIMA quits CCAB

1995117 | Sat, 05/03/2011 - 09:13 | Permalink

I am a CIMA member and I can't remember if I was asked for my vote or opinion?

Out of the blue?

Sarah K Dunks | Sat, 05/03/2011 - 14:42 | Permalink

I was just thinking the same thing, I can't remember ever reading anything or being asked our opinions on this subject. Often jobs state CCAB qualification and so if we now fall out of that group are we considered a lesser body? Will be interesting to see if any other accounting bodies follow CIMAs move and drop out.

CIMA Members In Practice

malc901 | Mon, 07/03/2011 - 11:39 | Permalink

As a CIMA member in practice I'm worried this will devalue the CIMA qualification in the eyes of potential clients. Also it may lead to problems when signing accountants certificates for clients applying for mortgages and loans when lenders often insist on a CCAB accountant signing the certificate.

CIMA

zubairmalik | Wed, 06/04/2011 - 20:25 | Permalink

I think CIMA must have consulted from members students before taking such decsion.i think CIMA should take this statement back as soon as possible.This step will impair CIMA brand.

Bank Reference

Countinformation | Mon, 06/06/2011 - 20:44 | Permalink

This is a terrible decision and as a MiP it will affect our ability to provide banks references typically requested when clients apply for loans.

As I understand it, the banks will only accept a references from accountants that are a member of an institute that is a member of CCAB. They will not recognise any association or institute that is not a member.

This will mean the downgrading of CIMA as a qualification. I for one am very concerned. My clients may well leave me as a result of not being qualified enough to provide a simple bank reference that the banks will recognise.

I think CIMA needs to contact all banks to ensure they recognise CIMA as a reference qualifying institute. If this does effect my business, I may well be forced to move to another accountancy institute.