Certified Practising Accountants Papua New Guinea INFORMATATION BROCHURE

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1 Certified Practising Accountants Papua New Guinea INFORMATATION BROCHURE

2 Certified Practising Accountants Papua New Guinea Certified Practising Accountants Papua New Guinea (CPA PNG) is the premier accounting professional body established under the Accountants Act Current membership is at 4,000 and growing. Mission Statement To serve the public interest, CPA PNG will continue to be the leader in the accounting profession in Papua New Guinea and be the choice of employers, providing professionals to meet the needs of the business community and the public sector. HISTORY The Papua New Guinea Association of Accountants (PNGAA) initially was incorporated in 1974 under the Associations Incorporation Act by a few practitioners aimed at fostering common understanding, relationship and standing in the fields of accounting and business advisory services in PNG. PNGAA on inception had no office of its own and all its matters were dealt with by the elected office bearers from their working offices at no costs to the association. At that time the association could not afford to rent offices and employ paid employees given the membership numbers and income sources of the association. The office bearers and councilors on the PNGAA Council were providing their services at no cost to the association and at times the office bearers and the Committee members had to foot some out of their pocket expenses on behalf of the association. Realizing the financial difficulties the association was going through during the early years, the President, Mr. Adrian Warupi in 1981 successfully negotiated and got a K20,000 annual grant from the National Government through Finance Minister, Sir Barry Holloway. This government grant continued to provide the needed support for the association. The members of the working team that spearheaded the PNGAA grew over the same period as the main source of income of the association was from subscriptions and exam fees. In late 1994, the only accounting body in PNG saw a name change. The PNGAA was changed to PNG Institute of Accountants Inc (PNGIA) still maintaining its incorporation under the Associations Incorporation Act. A few years later in 1996 the enactment of the Accountants Act 1996 (Chapter 189) called for the establishment of an accounting body that would oversee the training development and conduct of accountants in the country. In accordance with the legislative provisions, the name was further changed to Papua New Guinea Institute of Accountants, under the Accountants Act Some six years later, the name was further changed to Certified Practicing Accountants Papua New Guinea (CPA PNG). Involvement in Academia CPA PNG's association with tertiary institutions in the country began in 2003 in response to the perceived need for the development of the accountancy profession. There have been frequent visits to the five universities in the country offering accounting education holding meetings with students and the introduction of the CPA PNG Academic Excellence Award for the final year students every academic year. Other tertiary institutions offering accounting education also received their share of attention all year round with similar awards offered to boost academic excellence and professional competence.

3 One of the milestone achievements in this regard was the strategic alliance with the University of Papua New Guinea for the award of the joint MBA-CPA award. CPA PNG assesses on its professional units while UPNG assesses on the MBA units for the joint award. CPA PNG is still very actively involved in and has strong links with CPA Australia for professional development of Accountants. Establishment of Professional Standards The importance of conducting examinations as a means of determining eligibility for membership was adopted from other overseas models and was established by the early office bearers of CPA PNG. This practice has continued to be a critical part of professional development for members. The rebranding of the qualification to CPA PNG has received greater acceptance as it is a status that is compatible with other similar professional bodies around the world. As part of the ongoing process of encouraging members to maintain high ethical and professional standards, CPA PNG released the code of professional conduct. The change of name to CPA PNG in 2003 strengthened the link with the highly successful and recognized CPA qualification. The change in name and structure aims to unequivocally establish the CPA as the prime accounting designation in Papua New Guinea. Achievements since 1974 Since its incorporation in 1974 there have been a number of developments within CPA PNG. These include the membership to the Confederation of Asia Pacific Accountants (CAPA) in 1983, a close involvement in the development of the accountancy profession through continuing professional programs/conferences, the signing of the memorandum of understanding with CPA Australia paving the way for reciprocal accreditation and cross-crediting for professional programs, the increase in membership and increased number of associate membership, the acquisition of office space (ownership rights) with full time staff strength as compared to nothing at the time of inception, the increased attention/recognition accorded by the PNG Government through legislature and grants, the strategic alliance with the University of Papua New Guinea for the joint award of the Masters in Business Administration and CPA qualification, and the increased networking with stakeholders within the country and abroad. In the areas of education and development of professional expertise in the country, CPA PNG has adopted a graduate entry policy for graduate membership, and developed the Professional CPA Program. This policy entails graduate members upgrading to associate (fully pledged) membership by passing the professional programs. There are avenues available for non-graduates to gain membership under Accounting Technician status and then stream to the Professional Program. In recent times CPA PNG has conducted more review classes then ever at minimal costs offering members every chance not only to pass professional programs but also imparting continuing education to keep members abreast of the developments taking place in the accounting profession globally.

4 MEMBERSHIP INFORMATION AND REQUIREMENTS How To Become a Member of CPA Papua New Guinea To become a member of CPA Papua New Guinea, you must have completed a diploma or degree from an approved tertiary institution in PNG. Becoming a member of CPA Papua New Guinea straight from a tertiary institution will give the status of: REGISTERED ACCOUNTING GRADUATE (degree major in accounting), or REGISTERED ACCOUNTING TECHNICIAN (diploma in accounting/business or degree in business related disciplines other than accounting). A REGISTERED ACCOUNTING GRADUATE may immediately study for and pass the following subjects: 1. Foundations of Accounting (Pre-requisite to other subjects) 2. PNG Business Law 3. PNG Taxation Law & Practice 4. Financial Reporting 5. Strategic Management Accounting 6. Professionalism & Professional Ethics 7. Advanced Audit & Assurance 8. Financial Risk Management On passing all of these subjects and after three (3) years working experience in accounting, a member than becomes a CERTIFIED PRACTISING ACCOUNTANT by application. This gives him/her full voting rights and allows him/her to use the designatory letters of CPA (PNG). It allows him/her to become a member of the National Council or a Branch Council. A REGISTERED ACCOUNTING TECHNICIAN may immediately study for and pass the following subjects: 1. Foundations of Accounting (Pre-requisite to other subjects) 2. PNG Business Law 3. PNG Taxation Law & Practice 4. Financial Accounting & Reporting 5. Professionalism & professional Ethics 6. Management Accounting 7. Accounting Concepts & Principles or Business Finance (Elective subjects) On passing all of these subjects and after three (3) years working experience in accounting, a member than becomes a CERTIFIED ACCOUNTING TECHNICIAN, by application. This entitles him/her to use the designatory letters of CAT (PNG), to receive a membership certificate, and to have partial voting rights. In some cases, this may be the terminal qualification of a member. CPAs and CATs are required to do a minimum of 20 structured hours and 20 unstructured hours of continuing Professional Education each year. This is to ensure that members keep themselves up to date. It is a requirement to maintain membership of the CPA PNG.

5 CPA PNG recognises diplomas and/or degrees in Accounting and business related disciplines from the following universities and institutions for admission to membership 1. University of Papua New Guinea 2. University of Technology 3. Pacific Adventist University 4. Divine Word University 5. University of Goroka 6. Lae Technical College (Lae Polytechnic College) 7. Port Moresby Business College 8. Goroka Business College 9. Kokopo Business College 10. PNG Institute of Public Administration 11. Institute of Business Studies 13. IEA College of TAFE (Port Moresby) Advanced Diploma in Accounting 13. International Training Institute (Advanced Diploma) 14. Sonoma Adventist College 15. Overseas tertiary institutions which conduct diploma and degree courses at the same level as the above institutions Non-citizen members may only become members of CPA PNG if they are full members of the following professional bodies. 1: Non-Citizen (Expatriate) applicants must be full members of a professional accounting body overseas recognized by CPA PNG. (Refer listing below). 2: Candidates should have sufficient and relevant experience in accounting, auditing, taxation or business, four years of which must be at a supervisory level. 3: Entry into admission should be a minimum of a supervisory level (Manager, Finance Manager, Financial Controller, Chief Finance Officer, etc.) Certified General Accountants Association of Canada Certified Practising Accountants Australia (CPA s only) Compagnie Nationalae des Commissaires Au Comptes, France Fiji Institute of Accountants Hong Kong Society of Accountants Institute of Accountants of Indonesia Institute of Certified Public Accountants of Singapore Institute of Chartered Accountants of New Zealand Korean Institute of Certified Public Accountants Malaysian Association of Certified Public Accountants Malaysian Institute of Accountants Mexican Institute of Accountants National Federation of Certified Public Accountants Association of Taiwan National Institute of Accountants Australia Ordre des Experts Comptables et des Compatables Agrees, France Philippine Institute of Certified Public Accountants Samoan Society of Accountants The Canadian Institute of Chartered Accountants The Chartered Association of Certified Accountants (UK) The Chartered Institute of Management Accountants (UK)

6 The Chartered Institute of Public Finance and Accountancy (UK) The Chartered Public Accountants of South Africa The Chinese Institute of Certified Public Accountants The Institute of Chartered Accountants in Australia (ICA) The Institute of Chartered Accountants of Banlgadesh The Institute of Chartered Accountants in England and Wales The Institute of Chartered Accountants of India The Institute of Chartered Accountants in Ireland The Institute of Chartered Accountants of Pakistan The Institute of Chartered Accountants of Scotland The Institute of Chartered Accountants of Sri Lanka The Institute of Chartered Accountants in Zimbawe Professional Examinations CERTIFIED PRACTISING ACCOUNTANTS (CPA) CATEGORY (Degree Major in Accounting) Subject Cost Reference Books IFRS/AUDIT Standards Foundations of Accounting* K PNG Taxation Law & Practice* K Strategic Management** K Financial Reporting** K K (IFRS) Financial Risk Management** K PNG Business Law K Professionalism & Professional Ethics K Advanced Audit & Assurance** K K (Auditing Standard) CERTIFIED ACCOUNTING TECHNICIAN (CAT) CATEGORY (Diploma in Accounting/Business or Degree in Business related disciplines other than accounting) Subject Cost Reference Books IFRS/AUDIT Standards Foundations of Accounting* K Introduction to PNG Taxation Law & Practice* K Management Accounting** K Financial Accounting & Reporting** K K (IFRS) Introduction to PNG Business Law K550.00

7 Professionalism & Professional Ethics Accounting Concepts & Principles or Business Finance (elective) K K880.00

8 Re-sits: All K * Review Classes are offered for these K ** Review Classes are offered for these K (Only in Pom) K100 refundable upon passing these subjects NOTE: GST may be claimed as an input credit if paid by employers Final date for enrolment: o Semester 1 - End of February (Annually) o Semester 2 - End of July (Annually) Deadline to withdraw from the program without penalty: o Semester 1 - End of March (Annually) o Semester 2 - End of August (Annually) No enrolment will be accepted: o Semester 1 - After February (Annually) o Semester 2 - After July (Annually) The examinations are conducted twice annually. The first semester examinations are held on the last of week of May and the second semester examinations are held on the last week of October annually.

9 MEMBERSHIP & EXAMINATION STRUCTURE (COMMENCING JANAUARY 2010) CAT Category CPA Category 1. Diploma in business / accounting 2.Degree in business related disciplines, eg: IT, economics, management, etc REGISTERED ACCOUNTING TECHNICIAN (RAT) Examinations: 7 units CAT Status Three years relevant Degree in Commerce (Major in Accountancy) REGISTERED ACCOUNTING GRADUATE (RAG) Examinations: 8 compulsory units (4 CPA A & 3 CPA Three years relevant work CERTIFIED PRACTISING ACCOUNTANT (CPA)

10 For Further information, we can be contacted on the address below. CPA Papua New Guinea CPA Haus, Level 2 (Street Level), Armit Street, Paga Hill, P O Box 1937, Port Moresby, 121 National Capital District, Papua New Guinea Ph: (675) / ; Fax: (675) [email protected] or [email protected] Web: