What is ACCA?
ACCA stands for “Association of Chartered Certified Accountants“, which is a UK-based accounting certification and the one who qualifies is termed a “Chartered Certified Accountant“.
The term “Chartered” in the UK means authority granted by the monarch, in the UK the charter issuing authority is the King or Queen. In 1974 ACCA was granted a royal charter by the present Queen Elizabeth II.
And the term “Certified” means that ACCA is a certification, not a degree.
The Chartered certified accountants are eligible to provide services that include
- Accounting
- Auditing
- Tax filing
- Authorizing financial statements
- Analyzing financial statements
Founded in 1904 ACCA is the only professional, globally recognized chartered accountancy certification.
The Art deco Adelphi building, located at 1-10 John Adam Street in London, is the current HQ of ACCA. Its administrative office is located in Glasgow. There are over 104 offices and centers in 52 countries – with 323 Approved Learning Partners (ALP) and more than 7,300 Approved Employers worldwide, who provide employee development.
How many subjects are there in ACCA?
ACCA consists of 13 papers which are divided into three levels
- Applied knowledge
- Applied skills
- Strategic professional
Applied Knowledge
Applied knowledge exams provide the student with brief guidance on finance, business, and accounting techniques to develop a “know-how” of accountancy.
| EXAMINATION | TIMELINE |
| Computer-based examinations with 4 dates in a month |
| Computer-based examinations with 4 dates in a month |
| Computer-based examinations with 4 dates in a month |
Applied Skills
The next level is the applied skills which take the existing knowledge on techniques learned in the applied knowledge and takes it forward to a new level of understanding. The term “skills” says it all s it develops the accounting skills necessary to move forward in the world of finance.
| EXAMINATION | TIMELINE |
|
Computer-based examinations with 4 dates in a month |
| 4 dates in a year with March, June, September, and December |
| 4 dates in a year with March, June, September, and December |
| 4 dates in a year with March, June, September, and December |
| 4 dates in a year with March, June, September, and December |
| 4 dates in a year with March, June, September, and December |
Strategic Professional
Strategic professional is the third and the last level which is further divided into two parts i-e Essentials and Options which enables the student to learn the competitive business environment through a blend of modern techniques and advanced examinations further it provides the options to choose two out of four exams of your own choice which allows for specialization in one’s own preference
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Essentials Exams
| EXAMINATION | TIMELINE |
| 4 dates in a year with March, June, September, and December |
| 4 dates in a year with March, June, September, and December |
Options (2 out of 4)
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EXAMINATION | TIMELINE |
| 4 dates in a year with March, June, September, and December |
| 4 dates in a year with March, June, September, and December |
| 4 dates in a year with March, June, September, and December |
| 4 dates in a year with March, June, September, and December |
ACCA vs CA a Comparison
CA stands for “chartered accountancy” every country has its own accountancy body for regulating chartered accountants, for instance, UK has its own chartered accountancy body which is ICAEW, India has ICAI, Pakistan has ICAP and so on…….
The main difference that exists between both is Taxation.
Comparing ACCA with CA one can point out the fact that every country has its own tax laws and regulations. ACCA offers UK taxation while each country’s regulations are supported by the respective CA qualification. So there lies the main difference between these two reputable qualifications although both have the same principles and basics they differ in taxation.
Monopoly between ACCA and CA
Many ACCA affiliates who pass their qualification also face problems finding articles and jobs in their home countries. Due to the fact that every country wants its respective CA to thrive against a foreign qualification that’s a monopoly.
Global Exemptions for ACCA
But, that’s just one part of the story, ACCA affiliates enjoy more exemptions on a global level as compared to CA, for instance, CPA is recognizing ACCA and seems to be granting some ACCA members full direct CPA membership, also CIMA “chartered institute of management accountant” grants exemption up to 11 exams
The eleven CIMA exams that you will be exempt from includes:
- four Certificate level exams
- three Operational level exams
- the Operational level integrated case study exam
- three Management level exams.
Top of the list accounting body is ICAEW (institute of chartered accountants of England and Wales). As an ACCA student or affiliate, you may be exempt from up to 12 out of 15 exams by applying for Credit for Prior Learning (CPL) also if you’re a member of an ACCA organization and have gained membership through a professional pathway program you are eligible to apply for CA ANZ (Chartered accountant Australia and New Zealand) membership.
Cost analysis between CA and ACCA
ACCA is more costly than CA because of the fact that payments are made in pounds £ and the cost/paper depends upon the exchange rate of your country against the GBP. In contrast, CA is cheaper because fees are paid in your local currency.
As my home country is Pakistan and the currency here is Rupees…So a typical CA costs around 2-3 lac rupees whereas ACCA costs around 4-5 lacs. these costs have tuition fees included in it.
So, both ACCA and CA are a blow to the pocket, they don’t come easy, but this huge fee becomes just a bunch of pennies when compared to the benefits these courses garner afterward.
Studying ACCA can lead to a Bachelor of Science (Hons) in Applied Accounting degree from Oxford Brookes University (OBU).
After completing the applied knowledge and applied skills exams i-e from F1-F9.you can actually get a bachelor’s degree from…yes you heard it right “Oxford University“.
With an international reputation for innovation, high-quality education and research, and global relationships, OBU has frequently voted the best modern university in the Sunday Times Good University Guide.
To obtain this degree you have to first complete the skills level, undertake the Ethics and Professional Skills module, and successfully undertake a research and analysis project….and here you go you are a graduate at the same time as you are sitting for ACCA…isn’t it awesome?
Just think of the job prospects for an ACCA who also has an OBU degree while your CV is being read by your employers. It gives you an immense edge over your competitors and also shows your dedication to research, learning, and innovation.
And the last thing, as you move forward with your qualification and complete the strategic professional level you can also collect a Master’s qualification from the University of London.
So basically to summarize things up, ACCA gives you an opportunity to gain a bachelor’s and a master’s degree alongside the ACCA certification…that’s 3 in 1…
The flexibility offered by ACCA
ACCA offers flexibility in contrast to CA because CA offers groups and to move forward one has to pass all the exams in one go, failing one exam means repeating each and every subject again, there is no grouping of subjects in ACCA as there is in CA. So unlike CA if you do not pass a subject in ACCA, you have to rewrite only that particular subject and not every subject in that particular group.
Also, in ACCA you can attempt exams at your convenience. So you can give 1,2,3 or 4 exams at a time.
If you are an ACCA aspirant, you can also complete your articles anytime (before, during, or after the course).
All these small details and refinements in the ACCA course make it slightly easy to tackle than the CA exams.
Conclusion
So the conclusion reached while choosing between CA and ACCA although both are top-notch qualifications ACCA is globally recognized while CA is a local qualification.
If you plan to move to the UK, Canada, Australia, New Zealand, or the middle east.ACCA is the best option but if you want to stay in your home country then CA is preferable.
But, my advice to all the readers is to think in terms of the major core concepts embodied in both of these qualifications, they are all same…the major difference is the taxation laws of every region. So if you have a conceptual grasp of the subjects you would find many industries even in your home countries wanting a chartered accountant.
And everything works on money right??….. As long as we are breathing we would be needing money and with this need comes the demand for accounting, because each and every penny counts. So my advice is to work on the core concepts of accounting and most importantly acquire the skill of effective communication because in the end no one is gonna know how much you are capable from the inside or how much you know about the conceptual working of the modern financial systems if you could not deliver it to the ones hiring you…that’s the most important thing….The only thing that differentiates between the two graduates is how much they effectively communicate their knowledge.
Much of the time a person with less knowledge but excellent communication skills gets accepted you know why? ……Because everyone likes to talk to someone who talks in response and provides valued output….or simply look around yourself…The people having some sort of authority have something in their tone…that’s called effectiveness….so learn to I repeat “effectively” communicate…
Do meditation to clear your mind, let go of fears, feel powerful and energetic, stand in front of the mirror, and practice speech…Because in the end, all fears are in your mind..there is nothing in the real world that could make you fear…Yes, you can do it.
Some valuable tips for students encountering myths regarding CA and ACCA
Some of the things I did in my early childhood were to self-hypnotize myself for the beauty of a task and made it my hobby because every single task has beauty associated with it that’s called expertise and hobbies are something that motivates you into doing more and more.
Simply put, take any task you want to fulfill, in this case, it is ACCA, go and watch on youtube what ACCAs do, and what are their strengths, make a mind map of an ACCA’s lifestyle, challenges, and objectives and understand their importance in society more importantly how they function…and how the world would be like if there is no accounting…grasp all the concepts…picture yourself to be the best CCA, what it would be like? what would be your contribution to society as a whole? and what you can do after becoming CCA for the greater good.
In the beginning, you would feel it’s just futile but remember you have to do this visualization and mental mapping before sleeping because that’s the time your inner self is most awake. just give it 3 days and you would start realizing how much power you actually possess. harness this inner power and you can do wonders that’s my challenge…but you have to do it religiously for 15 minutes before sleep for 3 days…
So, my sincere advice to you all the aspirants out there, whether it is CA or ACCA both are valuable make it your hobby, make it fun by learning real-life concepts and there you go it’s all easy…
Always remember difficult or easy it’s all in the mind.
