Professions in the field of accounting by IMI PQ NET Romania

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Invest in people! EUROPEAN SOCIAL FUND Sectoral Operational Programme Human Resources Development 2007 – 2013 Priority axis 3 „INCREASING ADAPTABILITY OF WORKERS AND ENTERPRISES” Key area of intervention 3.3 “Development of partnerships and encouraging initiatives for social partners and civil society” Project Title: “Network of Competent Authorities for Professional Qualifications in Romania (IMI PQ NET Romania)” Beneficiary: Ministry of National Education Contract no. POSDRU/93/3.3/S/53132

GUIDELINE FOR THE CERTIFICATION OF COMPETENCIES AND THE RECOGNITION OF QUALIFICATIONS FOR THE PROFESSIONS IN THE FIELD OF ACCOUNTING

Author: Irina Dumitriu, Phd.

July 2013

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CONTENTS Introduction..............................................................................................3

1. Statement of regulations in Romania and other EU MS of professions in the field of accounting............................................6

2. Procedures for the certification of competencies applied by CA in the countries where the professions are regulated....................33

3. Processes for the recognition of qualifications achieved in other EU

for

practicing

the

professions

the

field

accounting.......................37

4. Exercising professions in accounting in the EU..............................53

5. Conclusions........................................................................................58

Bibliography...........................................................................................60

Abbreviations.........................................................................................66

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Useful Links..........................................................................................71

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INTRODUCTION

The guideline for the certification of competencies and the recognition of qualifications for the professions in the field of accounting is one of the results of the project “Network of Competent Authorities for Professional Qualifications in Romania (IMI PQ NET Romania)” implemented by the Ministry of National Education (MEN) in partnership the National Qualifications Authority (ANC) and the Social Policies Institute (IPS), co-funded from the European Social Fund through the Sectoral Operational Programme Human Resources Development 2007 – 2013 (POSDRU). The project IMI PQ NET Romania analyzed with the competent authorities (CA) members of the project Work Group, the procedures for the certification of the competencies and the processes for the recognition of qualifications for each profession regulated partly on this basis also, they developed standard schemes for the procedure for the certification of the competencies and the processes for the recognition of qualifications for each profession regulated. The final result of these activities is the material entitled “Standard terms of reference for the procedures of validation and certification of competencies and processes of recognition of qualifications”, which can be accessed at ................................................ ....................................

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This material includes the basic terminology (the definitions of the terms used in guidelines as well) and the standard schemes for the procedures for the certification of the competencies and the processes for the recognition of qualifications and this is why it was the basis of a number of 30 guidelines for the certification and recognition of different regulated professions, guidelines aiming at supporting the CA in Romania in their efforts to standardize such procedures and processes, in informing the, on the practices of the homologous CA in other EU Member States (MS).

At the same time, each guideline separately addresses the people having acquired the qualifications in that field of activity in Romania, wanting to practice the profession in a EU MS, as presented in the guideline.

The analysis was performed from Romania and 8 other EU MS (Austria, the Czech Republic, Denmark, Germany, Italy, Great Britain, the Netherlands and Spain) but the guideline includes some general information as well, resulting from the research of the database including all the regulated professions in all the EU MS of the European Economic Area (EEA) and the Swiss Confederation, develop by the European Commission (EC), the DG Internal Market), at

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(http://ec.europa.eu/internal_market/qualifications/regprof/index.cfm?ne wlang=en). The authors of the guidelines researched the European laws and of the respective states regarding the achievement of qualifications, the Vocational Education and Training (VET), types of certification documents

(diplomas,

certificates,

certificates

competency,

professional titles) regulations in the certification of competencies and the recognitions of qualifications, the professions regulated according to the

Directive

2005/36/EC

the

recognition

professional

qualifications. In the case of several EU SMs analyzed (Denmark, Germany, Italy, Great Britain, the Netherlands and Spain), there were study visits attended by the representatives of the members of the IMI PQ NET Ro Network, constituted within the project, as well as MEN and ANC experts. The visits consisted of meetings with the representatives of CA at the national level as well as CA managing different regulated professions, occasions on which the authors of the guidelines were able to collect more concrete information from a direct source.

In conclusion, the guide for the certification and recognition of accounting professions aims at: 

assisting the Body of Expert and Licensed Accountants of Romania (Corpul Experţilor Contabili şi Contabililor Autorizaţi din România - CECCAR) in their effort to standardize the

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procedure for the certification/award of the professional titles of expert an licensed accountant and the process of recognition of such qualifications, in informing them on the practices of the homologous CA in other EU SMs; ď&#x201A;ˇ

informing the people having been conferred the necessary qualifications and professional titles in Romania, wanting to practice in the field of accounting services in one of the EU SMs presented in the guideline.

1. STATEMENT OF REGULATIONS IN ROMANIA AND OTHER EU MS OF PROFESSIONS IN THE FIELD OF ACCOUNTING

The present European regulatory framework in the field of the recognition of professional qualifications acquired in the EU MSs mainly consists of the Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005 on the recognition of professional qualifications, as well as a series of sectoral directives in case of some professions which are not covered or are only covered in certain specific situations by the Directive 2005/36/EC (such as, Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts,

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Directive 2002/92/EC on insurance mediation or the Directives 1977/249/EEC and 1998/5/CE in case of lawyers). The Directive 2005/36/EC institutes a system for the recognition of professional qualifications in order to contribute to the flexibility of the EU labor market, in order to continue the liberalization in the field of services (Directive 2006/123/EC on services in the internal market), in order to encourage the autonomous recognition of qualifications and simplify the administrative procedures. This directive applies to all the European citizens wanting to exercise a regulated profession, either as a free-lancer or an employee, in a MS different than that where they were conferred the professional qualifications and distinguishes between the “freedom to provide services” and the “freedom of establishment” based on some criteria, such as duration, frequency, periodicity and continuity of service. From the point of view of the manner of recognizing the professional qualifications subject to it, the Directive 2005/36/EC regulates the following recognition systems: 

the system of automatic recognition based on professional experience in certain industrial, commercial and craft activities – activities listed in chapter II, for which the elements taken into consideration in the recognition of the professional experience are the duration and the form (as free-lancer or

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employee) and the previous training (element which may reduce the duration of the necessary professional experience), proven by a certificate recognized by the MS or considered valid by a competent professional body and the exercise conditions are mentioned in the lists for different groups of sectors of activity included in Appendix IV of the Directive; 

the system of automatic recognition of the qualifications for the professions of doctor, nurse, dental practitioner, veterinary surgeon, midwife, pharmacist and architect – professions provided in chapter III, for which the automatic recognition of qualification titles is made on the basis of coordination of minimum training conditions, including the minimum duration of studies, the qualification titles mentioned in appendices V and VI of the Directive;



The general system for the recognition of professional qualifications – system which applies to the professions which are not regulated by specific rules of recognition and certain situations where the holder of the professional qualification does not comply with the conditions provided in other recognition systems, system based on the principal of mutual recognition, without affecting the application of certain compensation measures in case there are significant differences between the training acquired by that individual and the training necessary in

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the host MS (adaptation period of up to three years or an aptitude test).

From the point of view of the level of the qualifications subject to the general system for recognition, the Directive 2005/36/EC distinguishes among 5 levels of professional qualification: 

an attestation of competence issued by a CA in the home MS, attesting either that the holder has acquired general knowledge corresponding to general primary or secondary education or that they have attended a training course not forming part of a certificate or diploma, or a specific examination without prior training, or full-time pursuit of the profession for three consecutive years;



a certificate attesting to a successful completion of a secondary course, technical or professional in character, supplemented by professional training;



a diploma certifying successful completion of training at postsecondary level of a duration of at least one year or training which provides a comparable professional standard and which prepares the trainee for a comparable level of responsibilities and functions;



a diploma certifying successful completion of training at postsecondary or university level of at least three and not more than four years' duration;

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a diploma certifying that the holder has successfully completed a post-secondary or university course of at least four years' duration.

The regulated professions in the field of accounting are subject to the general system for the recognition of professional qualifications, on several levels of qualification, from the certificate attesting to a successful completion of a secondary course to a diploma certifying that the holder has successfully completed a university course of at least four years' duration. As in the case of the other European directives, all the EU SMs had to comply with the Directive 2005/36/EC through its transposition in the national legislation. Hence, the relevant information on the procedure and the rules of the processes for the recognition valid in each MS is included in the national legislation transposing the Directive 2005/36/EC and it may be obtained at the National Contact Points for the recognition of qualifications all the MSs had to create (as listed at http://ec.europa.eu/internal_market/qualifications/contact/national_conta ct_points_en.htm).

Other European directives relevant for the accounting activity are: the Directive 2013/34/EC on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings

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(care amending Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts and repealing Directive 78/660/EEC on the annual accounts of certain types of companies and Directive 83/349/EEC on consolidated accounts), Directive 2004/109/EC on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market, the Directive on Services 2006/123/EC, Directive 2005/60/EC on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing, Directive 2011/83/EU on consumer rights and Directive 2000/31/EC on electronic commerce. According to the National Classification of Economic Activities (NACE), the financial audit activities are part of the same group of economic activities as accounting and tax consultancy (group 692 – Accounting, bookkeeping and auditing activities; tax consultancy), group which along with group 691 – Legal activities, makes up Division 69 – Legal and accounting activities. That is why, from the point of view of the activities reserved to different regulated professions corresponding to the services of the NAME group CAEN 692, in practice, there are overlappings between the accounting professions, those of financial audit and tax consultancy, different from one country to the other. There are few countries such as Romania, where there are distinctly regulated professions on the three sub-fields of activity. In some countries, although there are distinctly regulated professions, there is one CA where

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all the holders of professional title sin accounting, financial audit and tax consultancy are members, in other countries the professions names include the term “accountant”, however they are regulated only for the activity, exclusively reserved to, of statutory financial audit, whereas the accounting activities are not reserved to these professions (e.g. the Netherlands). Moreover, all the studies identified and used as information source treat the professions of the NACE group 692 altogether, as accounting professions. Also, from the point of view of the knowledge necessary for the practice of the professions pertaining to the NACE group 692, all these professions have a common basis (that is why FEE – Fédération des Experts-comptables Européens/Federation of European Accountant treats in its paper “Structure and Organisation of the Accountancy Profession” both the proper accounting professions and the financial auditor and tax consultant professions (in the countries where the latter is a distinct profession). For the same reason, in the IMI system – the electronic platform of the exchange of information between the CA of the EU SMs, EEA and Switzerland for the mutual recognition of the professional qualifications, there are several generic categories for the regulated professions in the accounting

field:

Auditor/accountant,

Accountant/tax

advisor,

Accounting technician, Commissioned bookkeeper, Management accountant, Payroll accountant, Public finance accountant. As it results from the name of the two generic categories Auditor/accountant

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and Accountant/tax advisor, MSs mentioned in these categories not only the accounting professions but also the regulated professions of financial audit and the tax consultancy professions respectively. Hence, in order to treat the guideline dedicated to CECCAR (since in the project, there were distinct guidelines for the Chamber of Financial Auditors of Romania [Camera Auditorilor Financiari din România] – CAFR and for the Romanian Chamber of Tax Consultants [Camera Consultantilor Fiscali din România] - CCF) only for the professions regulated from the point of view of the activities in the sub-field of accounting, it was necessary in the two generic categories to identify and eliminate the professions in financial audit and tax consultancy. In exchange, the regulated professions which have exclusively (other qualifications/professions do not have the right to carry the same activity) or partly (only two or more regulated qualifications/professions have the right to perform that activity but for the people holding no qualification in the case) reserved both accounting activities and financial audit and tax consultancy activities, were included in analysis presented in this guide. Table 1.1. depicts the situation of the accounting professions regulated from the point of view of the Directive 2005/36/EC on the recognition of professional qualifications, the professions extracted from the IMI system database, in all the above-listed generic categories.

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Table 1.1 Regulated accounting professions recorded in the IMI system

Name of the profession in the MS/generic category of the profession/Romanian translation

CA name

Qualification level

SEC-secondary Corpul Experţilor Contabili şi education certificate, Contabililor Autorizaţi din România art.11 b (CECCAR) (Body of Expert and PS4 – Post-secondary Licensed Accountants of Romania) Expert contabil/ diploma (exactly 4 Accountant/tax advisor www.ceccar.ro years), Art.11 e Gewerblicher Buchhalter/Bundesministerium für Wirtschaft, Accounting technician/ Familie und Jugend/Ministerul contabil comercial Economiei, Familiei şi Tineretului (Federal Ministry of Economy, Family and Youth) www.bmwa.gv.at Contabil autorizat/ Auditor/accounatnt

ROMANIA

AUSTRIA

BELGIUM

Selbständige Buchhalter / Kammer der Wirtschaftstreuhänder Accounting technician/ (KWT)/ Camera Contabililor contabil independent Publici (Chamber of Public DSE-Post-secondary Accountants) education diploma, www.kwt.or.at incl.Appendix II Buchhalter/ (ex.92/51, Appendix Public finance Paritaetische Kommission C,D), Art.11 c accountant/ contabil Bilanzbuchhaltungsberufe/ Comisia certificat Paritară pentru contabilitatea de Bilanzbuchhalter / gestiune (Parity Commission for Management Management Accountancy accountant/ Contabil de Professions) gestiune certificat info@bilanzbuchhaltung.or.at Personalverrechner / Payroll Accountant/ contabil de personal/ salarizare Comptable agréé/ Institut professionnel des Erkend boekhouder/ comptables et fiscalistes agréés/ PS3 - Post-secondary Accountant/tax advisor/ Insitutul Profesional al Contabililor education diploma (3contabil agreat şi Fiscaliştilor Agreaţi (Professional 4years) , Art. 11 d Institute of Accountants and Tax Comptable-fiscaliste consultants) agréé/ Erkend www.ipcf.be boekhouder-fiscalist/

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Name of the profession in the MS/generic category of the profession/Romanian translation Accountant/tax advisor/ contabil fiscalist agreat

Structural Instruments 2007 - 2013

CA name

Qualification level

SPF Economie, P.M.E., Classes moyennes et Energie, Direction PS3 - Post-secondary générale de la régulation et de l’organisation du marché, Service education diploma (34years) , Art. 11 d audit, droit comptable, coopératives/ Min. Economiei, IMM, Clasei Mijlocii şi Energiei – Direcţia Generală Reglementarea şi Organizarea Pieţei, serviciul de Expertaudit, drept contabil, cooperative comptable/accountant/ (FPS Economy Accountant/tax advisor/ SMEs, Self-Employed and Energy, expert contabil Maret Regulation) Institut des experts-comptables et des conseils fiscaux/ Institutul Experţilor Contabili şi Consultanţilor Fiscali (Institute of Chartered Accountants and TAx Consultants) www.iec-iab.be

BULGARIA

CZECH REPUBLIC

CYPRUS

Дипломиран експертсчетоводител (одитор)/ Institute of Certified Public PS3 - Post-secondary Auditor/accounatnt/ Accountants/ Institutul Contabililor education diploma (3expert contabil diplomat Publici Certificaţi 4years) , Art. 11 d (auditor) Činnost účetních poradců, vedení účetnictví, vedení daňové evidence/ Auditor/accounatnt/ consultanţă în contabilitate, servicii de contabilitate, contabilitate fiscală Λογιστής/ Auditor/accounatnt/

Ministerstvo průmyslu a obchodu/ SEC-secondary Ministerul Industriei şi Comerţului education certificate, (Ministry of Industry and Trade) art.11 b www.mpo.cz

Institute of Certified Public Accountants of Cyprus/ Institutul

PS3 - Post-secondary education diploma (3-

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FRANCE

GREECE

IRLANDA

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Name of the profession in the MS/generic category of the CA name profession/Romanian translation contabil/auditor Contabililor Publici Certificaţi din Cipru (Institute of Certified Public Accountants of Cyprus) www.icpac.org.cy Conseil supérieur de l’Ordre des Expert comptable/ experts-comptables/ Consiliul Accountant/tax advisor/ Superior al Ordinului Experţilor expert contabil Contabili (Supreme Council of Institute of Chartered Accountants) Ihdikos kostologissis sti viomichania/ Accounting technician/ contabilitatea costurilor în industrie şi IMM Ihdikos mihanografimenou logistiriou/ Accounting technician/ contabilitate pe calculator Logistís (AEI-TEI)/ Accountant/tax advisor/ contabil Accounting technician/ Institute of Chartered Accountants Accounting technician/ in Ireland/ Institutul Experţilor tehnician contabil Contabili în Irlanda www.icai.ie Technician accountant/ Institute of Certified Public Accountant/tax advisor/ Accountants in Ireland/Institutul contabil tehnician Contabililor Publici Certificaţi în Irlanda www.cpaireland.ie Certified accountant/ Association of Chartered Certified Accountant/tax advisor/ Accountants/ Asociaţia Experţilor contabil certificat Contabili Certificaţi www.ireland.accaglobal.com Incorporated Public Institute of Incorporated Public Accountant/ Accountants/ Institutul Contabililor Accountant/tax advisor/ Publici Incorporaţi (Inregistraţi) contabil public www.iipa.ie incorporat/înregistrat

Qualification level

4years) , Art. 11 d

PSM-Post-secondary education diploma (at least 4 years), Art.11 e

DSE-Post-secondary education diploma, incl.Appendix II (ex.92/51, Appendix C,D), Art.11 c

PS3 - Post-secondary education diploma (34years) , Art. 11 d

DSE-Post-secondary education diploma, incl.Appendix II (ex.92/51, Appendix C,D), Art.11 c

PS3 - Post-secondary education diploma (34years) , Art. 11 d

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Name of the profession in the MS/generic MS category of the CA name Qualification level profession/Romanian translation Löggiltur Ministry of Finance/ Ministerul PS3 - Post-secondary endurskoðandi/ Finanţelor education diploma (3ICELAND Accountant/tax advisor/ 4years) , Art. 11 d expert contabil Commercialista ed Ministero della Giustizia, Direzione PS4 - Post-secondary esperto contabile/ Generale della Giustizia civile, education diploma Auditor/accounatnt/ Libere Professioni/ Ministerul (exactly 4 years), contabil public şi expert Justiţiei, DG Justiţie civilă, Profesii Art.11 e contabil liberale (Ministry of Justice, General Department of Civil Ragioniere, perito Justice, Liberal Professions) commerciale/ Accountant/tax advisor/ www.giustizia.it contabil (înaintea ITALY adoptării titlului de PS3 - Post-secondary expert contabil) education diploma (3Dottore commercialista/ 4years) , Art. 11 d Accountant/tax advisor/ contabil public diplomat Ordine dei Dottori Commercialisti e degli Esperti Contabili/ Ordinul Contabililor Publici Diplomaţi şi al Experţilor Contabili (Association of certified accountants) Buchhalter/ Amt für Volkswirtschaft (Office of Accounting technician/ National Economy) contabil www.llv.li/amstsstellen/llv-avwDSE-Post-secondary home.htm education diploma, LIECHTENincl.Appendix II Wirtschaftsprüfer/ FMA Finanzmarktaufsicht STEIN Accountant/tax advisor/ /Autoritatea pentru Pieţe Financiare (ex.92/51, Appendix C,D), Art.11 c contabil public (Financial Market Authority Liechtenstein) www.fma-li.li Expert comptable/ Ministère des Classes moyennes/ PS3 - Post-secondary Accountant/tax advisor/ Min. Claselor Mijlocii (Ministry of education diploma (3LUXEMBOURG expert contabil the Middle Classes) 4 years) , Art. 11 d www.mdt.public.lu Accountant/ Accountancy Board/Consiliul PS3 - Post-secondary Auditor/accounatnt/ Contabilităţii education diploma (3MALTA Contabil 4 years) , Art. 11 d Chartered Public finance Chartered Institute of Public PS3 - Post-secondary GREAT accountant/ Finance & Accountancy/ Institutul education diploma (3BRITAIN Public finance Certificat pentru Finanţe Publice şi 4 years) , Art. 11 d

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NORWAY

POLAND

PORTUGAL

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Name of the profession in the MS/generic category of the CA name profession/Romanian translation accountant/ Contabil în Contabilitate finanţe publice certificat www.cipfa.org.uk Chartered management Chartered Institute of Management accountant/ Accountants (CIMA)/ Institutul Management Certificat al Contabililor de accountant/ Contabil de Gestiune gestiune certificat www.cimaglobal.com Chartered Certified Association of Chartered Certified Accountant/ Accountants (ACCA)/Asociaţia Auditor/accounatnt/ Contabililor Experţi Certificaţi contabil expert certificat www.accaglobal.com Chartered accountant/ Institute of Chartered Accountants Auditor/accounatnt/ in England and Wales (ICAEW)/ expert contabil Institutul Experţilor Contabili în Anglia şi Wales Institute of Chartered Accountants of Scotland (ICAS)/ Institutul Experţilor Contabili în Scoţia www.icas.org.uk Autorisert Kredittilsynet/ Autoritatea de regnskapsfører/ Supraveghere Financiară a Accountant/tax advisor/ Norvegiei (The Financial contabil extern autorizat Supervisory Authority of Norway) www.kredittilsynet.no Usługowe Prowadzenie Minister Finansów/ Ministerul Ksiąg Rachunkowych Finanţelor (Ministry of Fiannce) (Aneks - A - Kodeks www.mf.gov.pl dobrej praktyki)/ Commissioned bookkeeper/ servicii de contabilitate (Anexa A – Codul de bună practică) (Appendix A - Code of good practice) Técnico oficial de Ordem dos Técnicos Oficiais de contas/ Accountant/tax Contas/ Ordinul Contabililor advisor/ contabil oficial Oficiali (Autorizaţi) (Order of (autorizat) Chartered Accountants) www.ctoc.pt

Qualification level

PS3 - Post-secondary education diploma (34 years) , Art. 11 d

PSM-Post-secondary education diploma (at least 4 years ), Art.11 e

PS3 - Post-secondary education diploma (34 years) , Art. 11 d

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Name of the profession in the MS/generic category of the profession/Romanian translation

Structural Instruments 2007 - 2013

CA name

HUNGARY Mérlegképes könyvelő/ Ministry for National Economy/ Auditor/accounatnt/ Ministerul Economiei Naţionale contabil certificat

Qualification level

DSE-Post-secondary education diploma, incl.Appendix II (ex.92/51, Appendix C,D), Art.11 c

Source: processing of the author with information from the IMI system http://ec.europa.eu/internal_market/qualifications/regprof/index.cfm?action=pro fession&id_profession=2100 (on April 30, 2013)

In those presented above, one notes the fact that in many countries, the professions in the field of accounting services are regulated (19 countries registered 36 professions in the IMI system), in some of them, there being several regulated professions, on the one hand, on different qualification levels, on the other hand, on different specialties on the same basic qualification level. There are also MSs where of all the accounting professions generally (the entire NACE group 692), only the financial auditor’s activity is regulated, by the transposing of Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts (e.g. Spain).

From the point of view of the basic qualification, there are different requirements for the same title. For example, for the accountant in France it is necessary to have a basic qualification in the state education

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system (diploma in accounting and management – DCG, conferred after the baccalaureat - 3 years; higher diploma in accounting and management – DSCG, conferred after DCG – 2 years; chartered accountant diploma – DEC, conferred after DSCG), the higher diploma in accounting and management DSCG granting the right to the condition of intern chartered accountant and the registration with the Institute of Chartered Accountants.

In Italy, in order to become an accountant it is necessary to have a bachelor degree in economic and business management or bachelor or economic sciences (general economics).

The manner of regulation as well is different from one country to the other, covering practically all the regulation mechanisms identified by the EC, DG Internal Market and Services1: 

through the reservation of activities – exclusive or joint – to professionals holding specific professional qualifications;

DG Internal Market and Services - Final Report – Study to provide an

Inventory of Reserves of Activities linked to professional qualifications requirements in 13 Member States & assessing their economic impact, January 2012, p.4

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through professional tiles protected by the law, the holders of such titled having no specific activities reserved;



through self-regulation by the professional associations requiring from the members certain professional standards and a code of ethics and professional conduct (in observance of the national laws and the EU laws, especially competition regulations);



regulation of the activities/services through licences and authorizations (in the sense that the undertakers must have a minimum number of people holding the experience and qualification appropriate to the services in order to be licensed for the operation).

Corroborating the information on the regulation of the accounting professions in several comparative studies made at the EU level2 and 2

Mainly: FEE - Key Features on Structure and Organisation of the Accountancy

Profession

across

European

countries,

March

2012,

http://www.fee.be/images/publications/qualification/Intro_Structure_and_Organ isation_of_the_Profession2732012401312.pdf – sheets on the 9 EU MSs we made a comparative analysis of; DG Internal Market and Services - Final Report – Study to provide an Inventory of Reserves of Activities linked to professional qualifications requirements in 13 Member States &assessing their economic impact,

January

2012

appendix

the

final

report

http://ec.europa.eu/internal_market/qualifications/docs/news/20120214-

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amending the, with information taken from the national documents (to be updated), we will continue with the regulation of professions in the 9 MSs analyzed. In Romania, the protected titles of expert accountant and licenced accountant are regulated by the Government Ordinance (GO) no. 65/1994 on the organization of the accounting expertise and licensed accountants activity, republished, as subsequentlu modified, and the CA for the two professions is the Body of Expert and Licensed Accountants of Romania – CECCAR. The two professional titles reflect the regulation of the accounting activities on the two qualification levels, deriving also the difference concerning the activities the expert accountant may carry apart from those of the licenced accountants. According to the GO no. 65/1994 republished, the expert accountant may provide the following services to natural and legal persons: 

keeps or supervises the bookkeeping and prepares or verifies and approves the financial statements;



provides assistance for the accounting management and bookkeeping;



performs economic and financial analyses and asset appraisals;

annex_en.pdf - sheets on the 7 MSs analyzed, Romania an Austria not being part of the sample countries of analysis.

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undertakes accounting examinations required by judiciary bodies or demanded by natural or legal entities, according to legal requirements;



undertakes any other work of

financial,

accounting,

administrative or IT management nature as required; 

fulfills the tasks provided for in the company censor’s mandate, according to legal requirements;



provides technical expertise for the creation and restructuring of trading companies;



provides accounting-related professional services to natural or legal entities.

The licenced accountant may ensure the bookkeeping and develop the works in order to prepare the financial statements. Moreover, the Law no. 149/2013, published in the Official Journal no. 257 of May 9, 2013, completes the rules regulating the expert accounting activities, appraisal of goods, financial audit, tax consultancy and insolvency practitioner activities, clearly stipulating that the professional of these fields may have a complementary activity only if qualified for it and they are members of the organizations coordinating the respective liberal professions. More exactly, the Law no. 149/2013 provides punctually that “Expert accountants may perform the activities of financial audit, tax consultancy and appraisal only after having acquired, according to the law, the quality of financial auditor, tax

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consultant or authorized appraiser, as the case may be and having registered as member of the organization coordinating such liberal professionsâ&#x20AC;?3. It thus results on the one hand, that all the expert accounting activities are exclusively reserved to the expert accountant profession and, on the other hand, that the expert accountants do not have other partly reserved activities or authorizations included in financial audit, appraisal, legal reorganization and liquidation fields or tax consultancy, since each of these activities is exclusively reserved to one of the other liberal financial professions distinctly regulated in Romania. The expert accountants and the authorized accountants must register among the Members of CECCAR (among which are registered as well the expert accounting companies and the accounting companies authorized by CECCAR), the registration fee being approx. Euro 40 for expert accountants and Euro 20 for authorized accountants.

Law no. 149 of April 30, 2013, 149/2013 for approving of the Government

Ordinance no. 23/2012 for amending and supplementing the Government Emergency Ordinance no. 90/2008 on statutory audit of annual financial situations and the consolidated financial situations and the Government Ordinance no. 65/1994 on the organization of accounting expertise activity and of the certified accountants and for amending other rules, Official Journal no. 257 of May 9, 2013.

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As far as the public interest supervision of the activity of the accounting professions – provisions in the Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts – in Romania, according to the GO no. 23/2013 for the modification and amendment of the GEO no. 90/2008 (on the statutory audit of annual financial statements and annual consolidated financial statements, as subsequently amended and modified, GEO transposing the Directive 2006/43/EC) and of the GO no. 65/1994, the Council for Public Supervision of the Statutory Audit Activity (Consiliul pentru Supravegherea Publică a Activităţii de Audit Statutar [CSPAAS]) has become Council for the Public Interest Oversight

the

Accountancy

Profession

(Consiliul

pentru

Supravegherea în Interes Public a Profesiei Contabile [CSIPPC]), with the view to widening the sphere of public oversight to the CECCAR4 members as well. 4

However, it is still not clear to which extent CSIPPC already deals with the

public interest oversight of CECCAR members, since of CSIPPC website, apart from the logo on the front page, the rest of the information is still on CSPAAS, including in the presentation of the members of the Superior Council, there appear the representatives of the National Securities Commission (Comisia Naţionala de Valori Mobiliare), of the Insurance Supervisory Commission (Comisia de Supraveghere în Asigurări) and of the Supervisory Commission of the Private Pension System (Comisia de Supraveghere a Sistemului de Pensii Private), supervisory bodies of the financial markets which in May 2013 merged

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Austria,

the

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accounting

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professions

are

regulated

Bilanzbuchhaltungsgesetz - BibuG (Law on management accounting), law which was substantially modified, the new form coming into force on January 1, 2013. Thus, the 2 previously regulated professions Gewerblicher Buchhalter - GBH (Accounting technician) and Selbständige Buchhalter - SBH (independent accounting technician) were auppressed, and the holders of the commercial licences GBH and SBH were transferred to one of the three new regulated professions: Bilanzbuchhalter - Bibu (Management accountant), Buchhalter – BH (Public finance accountant) and Personalverrechner – PV (Payroll Accountant). For these three professions a new CA was created, Paritaetische Kommission Bilanzbuchhaltungsberufe - PK (Parity Commission for Management Accountancy Professions) consisting of the representatives of the two chambers involved in the management of these two professions: Kammer der Wirtschaftstreuhänder - KWT (Chamber of Public Accountants, CA for the regulated professions of financial auditor - Wirtschaftsprüfer and tax consultant – Steuerberater) and Wirtschaftskammer Österreich - WKO (Austrian Economic Chambers, the representatives of all the companies and undertaking in Austria in

in one supervisory body of the three financial markets – the Financial Supervisory Authority (Autoritatea de Supraveghere Financiară [ASF]).

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the social dialogue, chambers involved as well in the secondary and tertiary vocational/professional education in Austria).

The manner of regulation of the three professions is the award of a business licence/authorization (the basic qualification level being the same) mentioning the services which may be rendered. The type of licence depends on the number of years of experience and the different examination the applicant must take. It is possible to go from one licence to the other (superior) and the association of the holders of different licences in the same company (including auditors and tax consultants, members of KWT). According to PK5, the new law was passed with the view to the liberalization of the regulation framework of the liberal accounting professions, the creation of a competitiveness situation and market transparency and the provision of quality services, appropriate for the different market segments, according to the requirements of the EU Internal Single Market and the new regulation framework lead to the increase of the number of licences from approx. 5000 (for GBH and

PK â&#x20AC;&#x201C; Independent accountancy in Austria, at http://www.bilanzbuchhaltung.or.at/Independant%20Accountancy%20in%20A ustria.pdf

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SBH by January 1, 2013) to over 10.000 licences for the present three professions.

Te new CA is responsible for the organization of exams, the award and withdrawal of the commercial licence/authorization, the organization and discipline aspects and the application of the international regulations.

In January 2013, PK made the transfer of the former holders of the GBH and SBH authorizations (which were registered in the KWT register) with WKO, in the IT economic, consultancy and accounting sector (Unternehmensberater, Informationstechnologen und Buchhalter – UBIT), the group of accounting professions.

In the Czech Republic, the professions in the field of accounting are not regulated by the law there are only requirements related to the professional experience, as provided by the Commercial Code (Trade Licensing Act No. 455/1991), for the business authorization/provision of services. Hence, the Czech authorities recorded in the IMI system the generic category Činnost účetních poradců, vedení účetnictví, vedení daňové evidence (accounting consultancy, accounting and tax accounting).

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In Italy, the professional titles in the field of accounting, Dottore commercialista (public chartered accountant) and Esperto contabile (accountant), are regulated by the D.Lgs. 28 giugno 2005, n. 139. Costituzione dellâ&#x20AC;&#x2122;Ordine dei dottori commercialisti e degli esperti contabili (Law on the constitution of the Association of certified accountants). Before the reform of 2005, there were separate regulations for the professions of dottore commercialista and ragioniere, although they had many common competencies. Since the Law 139/2005 was passed, the regulations and the professional body become one and a new professional title esperto contabile replaced the title of ragioniere.

From the point of view of the reserved activities, the title Dottore commercialista includes all the activities the accountant may provide and some reserved activities more. Hence, both professions may provide services of accounting, judicial accounting expertise, tax consultancy, management of the assets of the entities subject to special measures of crime prevention, consultancy in the labour law, appraisal of assets, non-statutory

financial

audit

and

the

dottori

commercialisti,

furthermore, may be insolvency practitioners, the may be part of the councils of auditors of companies and may represent the customers before the administrative authorities.

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The registration in the register of the professional body Consilio Nazionale dei Dottori Commercialisti e degli Esperti Contabili – CNDCEC (National Board of Chartered Accountants and Accounting Consultants), Section A – Dottori commercialisti and Section B – Esperti contabili, is compulsory and per territory branches of CNDCEC, the registration fee being of approx. Euro 500.

Ministero della Giustizia, Direzione Generale della Giustizia civile, Libere Professioni ( the Ministry of Justice, General Department of Civil Justice, Liberal Professions) is the CA and the supervisory body for both professions.

the

Netherlands,

the

professions

Accountant

–

administratieconsulent (accounting consultant) and Registeraccountant (chartered accountant) are regulated only as far as the exclusive reservation of the financial audit activity, whereas the accounting services may be provided by individual who are not registered with the NBA Institute, the CA for the two professions. In other words, for the permanent provisions of accounting activities exclusively, not also financial audit, it is not required to recognize the accounting qualifications in other MSs.

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In Denmark, Germany and Spain, the accounting professions are not regulated. In Great Britain, in most cases, the market access is not limited by the reservation of certain regulated qualifications/professions but consumer protection is provided through the existence of legally protected professional titles, the holders of these titles being the members of the professional associations/institutes granting the titles and regulating the activity of their members. The statute of “chartered” (legally protected) bodies shows that there is a distinct profession in that activity and the body granting the title/titles has the capacity to establish and maintain high technical and ethical standards among their members. The “chartered” body statute also confirms that the organization and its members are recognized as experts in that field of activity, which is of public interest.

In the field of accounting, any person in Great Britain may be an accountant and provide accounting services but there are 4 legally protected (chartered) professional titles, their holders not having the accounting activities reserved.

The titles and the associations/institutes granting them are the following: 

Chartered Certified Accountant, title conferred by the Association of Chartered Certified Accountants – ACCA;

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Chartered Management Accountant title conferred by the Chartered Institute of Management Accountants – CIMA;



Chartered Public Finance Accountant title conferred by the Chartered Institute of Public Finance and Accountancy – CIPFA;



Chartered Accountant title conferred by the Institute of Chartered Accountants in England and Wales – ICAEW and the Institute of Chartered Accountants of Scotland – ICAS6.

Each institute separately is a regulation body for its members (and the membership is voluntary), and their activity is supervised by the de Professional Oversight Board – POB, a structure of the Financial Reporting Council – FRC.

The registration fees and the fees for the issue of the practice certificate (in the sense of the use of the professional protected title) are the following7:

We used the two variants of translation of the titles and the CA in Great

Britain because in some specialty Romanian texts, the term “Chartered” is taken as such and in others (e.g. CECCAR documents) the title “chartered accountant” is assimilated to the professional title of expert accountant in Romania.

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ACCA – the membership fee is £193 and the fee for the practice certificate is £385;



CIMA – £234 for members and £85 for practicing members;



CIPFA – £285 the membership fee and £200 for the practice scheme;



ICAEW - £300 membership fee and £268 for the practice certificate;



ICAS - £396 the membership fee and £ 474 for the practice certificate.

Information taken from FEE - Key Features on Structure and Organisation of

the Accountancy Profession across 30 European countries, 26 March 2012

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2. PROCEDURES FOR THE CERTIFICATION OF COMPETENCIES APPLIED BY CA IN THE COUNTRIES WHERE THE PROFESSIONS ARE REGULATED

As far as the Directive 2005/36/EC on the recognition of professional qualifications, one may note in table 1.1 that the basic qualification level varies in the case of the regulated accounting professions â&#x20AC;&#x201C; some are secondary level, others are post-secondary level, either higher vocational/professional education or university level 3-4 years or at least 4 years.

In table 2.1 we presented comparatively the requirements for the award f of the titles corresponding to the accounting professions and continuous professional training/professional development only in Romania and other EU MSs analyzed where the accounting professions are regulated, i.e.: Austria and Italy.

We will also separately present, in the case of Great Britain, the requirements of the 5 institutes granting the chartered titles.

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Table 2.1 Situation of qualifications necessary for the practice of regulated accounting professions in the analyzed EU MSs MS Compulsory training requirements for the title/practicing authorization

Austria All three professions suppose the same basic qualification level through special structured training in the dual professional and technical system: total education cycle of 18 years, of which professional training of at least 9 years (4 years secondary technical studies and 5 years’ practice and professional training finished in a professional exam) + Years of work experience (increased for PVBH-Bibu) + Differentiated exam in PK + Commercial licence/authorization FPC/ continuing Yes, the law provides at least professional 30 hours of development FPC/year

Italy University degree in economic studies (bachelor degree for esperto contabile, master’s degree for dottore commercialista) + 3 years’ practice + State examination for the professional title

Romania University degree in economic studies (bachelor) for expert accountant / secondary education diploma for licensed accountants, recognized by MEN + Exam for internship + 3 years’ internship + Aptitude test for the professional title

Yes, organized by the territory representative office of CNDCEC

Yes, according to the National Programme for Continuing Professional Development

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Application of the professional standards

Disciplinary measures

Yes, the responsibility of PK

Structural Instruments 2007 - 2013

CNDCEC sets and applies the professional standards under the supervision of the Ministry of Economy and Finance and Consob in case of public interest audit companies Yes, CNDCEC oases disciplinary measures under the supervision of the Ministry of Economy and Finance and Consob in case of public interest audit companies

(Programul Naţional de Dezvoltare Profesională Continuă (PNDPC) of CECCAR, at the level of the 42 county representative offices, based on the Professional Standard no. 3, transposing the standard IES 7 of IFAC Yes, CECCAR develops and applies professional standards based on the IFAC standards

yes

Source of information: FEE – Key Features on Structure and Organisation of the Accountancy Profession across 30 European countries, 26 March 2012; DG Internal Market and Services – Final Report – Study to provide an

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Inventory of Reserves of Activities linked to professional qualifications requirements in 13 Member States &assessing their economic impact, January 2012 â&#x20AC;&#x201C; appendix H (for Italy, because Austria and Romania were not include in the sample of analyzed countries), the national legislation in case of Austria

In the case of the 5 British, the Recognised Qualifying Bodies, the requirements for access and achievement of the chartered qualification are synthetically presented in the following table. Table 2.2 Access requirements and qualification programs for the professional chartered titles in Great Britain ACCA Conditions a)secondary education for access diploma b) to university/p qualificaio ostgraduate diploma n c) calificare de Certified Accounting Technician (CAT)

CIMA a)Free access but students must obtain Certificates in Business Accounting before attending the qualification programme b) AAT qualification

Compulsor Study and 14 5 exams for the ACCA y training qualification exams + for professional qualificatio ethics model +3 years of n relevant practical experience

Certificates in Business Accounting + study and 10 qualification exams + 3 years of relevant practical

CIPFA a)secondary education diploma b) university/postgra duate diploma c) AAT qualification

ICAEW

a)secondary education diploma b) university/post graduate diploma c) ICAEW certificate in Finance, accounting and business (CFAB) d) AAT qualification 12 modules, 3 ACA stages: 1. Prof. qualification certificates; programme: 2.Prof. 15 modules diploma; training+ 3.Strategic 450 days of phase + practice+ employment for initial relevant professional practical development

ICAS a)secondary education diploma b) university/post graduate diploma c) AAT qualification

Internship agreement with an employee authorized by ICAS (3 years usually) + study and Ĺ&#x;i 3 exam

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experience

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experience (usually 3 years)

+ structured training in ethics

stages + course in business ethics

Source: FEE, Key Features on Structure and Organisation of the Accountancy Profession across 30 European countries, 26 March 2012

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3. PROCESSES FOR THE RECOGNITION OF QUALIFICATIONS ACHIEVED IN OTHER EU MS FOR PRACTICING OF PROFESSIONS IN THE FIELD OF ACCOUNTING The statistics in the IMI system, made based on the data on the movement of professionals on the two manners of provision (through permanent establishment/exercise of their profession in a different EU MS, EEA and Switzerland or temporary/occasional provision) and per each generic category of professions separately, registered in the database until now, they are not relevant as such in the case of accounting professions, because, as we showed in chapter 1 of the guideline, the EU MSs, EEA and Switzerland, they registered regulated professions in accounting in different generic categories, of which only some include proper accounting professions, whereas others reflect not only the movement of accountants but also of the regulated professions of financial auditor and tax consultant which were registered in those generic categories. Hence, the statistics presented herein are based on the processing of the data strictly in the recognition registered by the EU MSs, EEA and Switzerland, on the professions regulated for the accounting activity.

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The situation of the decisions for the recognition of qualification for the permanent establishment/exercise, in the period 2008 – 2012, of the accounting professions as [resented in table 3.1.

Table 3.1 Statistics of the decisions for the recognition of qualification achieved in other EU MSs, EEA ad Switzerland for the accounting professions (2008 – 2012) Host country:

Profession for

Home country of

No. of

regulated

which the

the qualification

positive

negative

professions

recognition

No. of

Total

neutral decisions

decisions decisions decisions

decision was passed Belgium:

Comptable-

Bulgaria

21= 5 + 4 +

fiscaliste agree/

Italy

Erkend

Luxembourg

applications

boekhouder-

The Netherlands

of 7 MSs

fiscalist

Romania

din 7 SM

11=4+2+5 Expert-

France

comptable/

Luxembourg

accountant/

Great Britain

10=1+2+7

The Netherlands

Czech

Činnost účetních

France

Republic:

poradců, vedení

Germany

8 positive

účetnictví, vedení Italy

decisions to

daňové evidence

Poland

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applications

8 0

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from 4 MSs Cyprus:

Λογιστής

249 positive

249

Czech Republic 0

Great Britain

249

decisions to applications from 1 MS France:

Expert

Austria

47 = 31 + 8

comptable

Belgium

47=31+8+8

Germany

Ireland

Italy

Luxembourg

din 11 SM

Malta

Poland

Portugal

Romania

Great Britain

Greece:

Logistís

Switzerland

23 = 2 + 4 +17

(AEI-TEI)

Great Britain

din 2 SM şi

23=2+4+17

The Netherlands

Commercialista ed

Bulgaria

24 = 2 + 7

esperto contabile

Greece

+ 15

24= 2+7+15

Luxembourg

Great Britain

Poland

Romania

Spain

Germany

Elveţia Italy:

din 7 SM

Poland:

Usługowe

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21 = 8 + 3 + 10 of 4 MS

Prowadzenie Ksiąg Rachunkowy 21=8+3+10

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Ireland

Poland

Slovakia

Portugal:

Técnico oficial de Poland

1 positive

contas

decision from 1 14=3+4+7 MS Romania:

Expert contabil

Cyprus

7 positive

Finland

decisions to

Frane

applications

Italy

from 4 MSs Hungary:

mérlegképes

positive

1 neutral

könyvelő :

decisions to

decision from

0 0 1

applications

313

402

from 1 MS 10 host

11 professions

20 countries

countries

Source: data processed based on the IMI system on July 16, 2013, by the author, the situation of the decisions of permanent provision, only for the accounting professions in all the generic categories where they were registered - at http://ec.europa.eu/internal_market/qualifications/regprof/index.cfm?action=pro fession&id_profession=2100&tab=countries&quid=2&mode=asc&maxRows=* #top Note: in the case of Romania, the data in the IMI system were amended with information provided by CECCAR

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In these statistics we may note the fact the Romania is among the 10 MSs of the EEA receiving applications for the recognition of qualification achieved in Italy, France, Cyprus and Finland but it is not in the top 5 of passed decisions. Cyrus is the first in this top with 62% of the total decisions for the recognition passed in the period 2008 – 2012. If we consider however that all these 249 decisions – all positive and without any aptitude test – refer to individuals achieving the qualification in Great Britain, it might be that Cypriot citizens obtained one of the British qualifications even in Cyprus or studied in Great Britain, reflecting not necessary the movement of professional but also the quality of British qualifications and their recognition at the international level.

As a home country of accounting qualifications, Romania is the second (4% of the total applications for recognition), after Great Britain and just as Germany, with 15 applicants for the recognition of their qualification: 4 applications in Belgium, for the practice of the tax accountant profession (2 positive decisions, a rejection and a pending application), 6 applications in France for the practice of the expert accountant profession (4 positive decisions, a rejection and a pending application) and 5 applications in Italy for the practice of the expert accountant profession (according to the registrations made by the CA in Italy in the

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IMI system, all applications were drawn in 2011 and they are pending in 2012).

Per total, the majority of qualifications achieved in other MSs were recognized (78% of the decisions were positive) which reflects a high degree of mutual trust between the MSs of the EEA, as far as the professional training in accounting.

The chart, the statistics of the mobility for permanent establishment provision of accounting professions is the following: Chart 3.1 â&#x20AC;&#x201C; Structure of the recognition of the accounting qualifications per types of decisions, 2008 - 2012

16%

6% Dec iz ii poz itive Dec iz ii negative Dec iz ii neutre

78%

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Chart 3.2 – Structure per host countries of the accounting qualifications per types of decisions, 2008 – 2012 4%

5% 5%

C ipru

F ranta 6%

Italia G rec ia B elgia 62%

12%

P olonia R es tul de 4 tari

Chart 3.3 – Structure per home countries of applications for the recognition of accounting qualifications, 2008 – 2012 9% 3%

3% Marea B ritanie

3% 4%

G ermania R omania

Italia L ux emburg S pania 74%

R es tul de 14 tari

Source: all the three charts are made based on the data processed by the author in - the EC database with the regulated provisions presented in table 3.1

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In the top of the most mobile professions in permanent provision (establishment) throughout the reporting period, the generic categories existing in the IMI system containing the accounting professions, they occupied the following positions: 

position 45 – auditor/accountant, with 460 decisions;



position 70 – accountant/tax advisor, with 198 decisions.

Out of the 448 generic categories in the top (for which there were recognition application in the period 2008 - 2012), with the 402 passed decisions, only the accounting provisions selected out of these generic categories would be in position 51.

The process of the recognition of the qualification is required only in the case of the permanent establishment/provision of services. As we mentioned in chapter 1 of this guideline, the regulated accounting professions are subject to the general system for the recognition of professional qualifications provided in the Directive 2005/36/EC on the recognition of professional qualifications. In this case, the recognition is not automatic but it needs a comparison between the professional training provided for in the two countries – the one where the applicant achieved the qualification (the home country) and the ne where they want to exercise permanently their profession (the host country), as well

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as the possibility, in case of “substantial differences” of applying compensation measures (adaptation period of up to three years or an aptitude test – article 23 of the Directive).

For the recognition in the general system, the application for recognition is addressed to the CA in the host MS. This application must be accompanied by a series of documents and certificates provided in appendix VII to the Directive 2005/36/EC. The documents that may be requested with the submission of the application for recognition are: 

proof of the nationality



proof of establishment in a different EU MS, EEA or Switzerland



documents

regarding

the

professional

qualification,

the

competencies and the practical experience: certificate of competence or the proof of qualification issued by the CA in the home MS; 

other documents, if required to those having achieved the qualification in the host MS – good reputation attestations, solvency certificates, the proof that the applicant is medically capable, financial statement, professional insurance.

The CA in the host MS may request only for the most important documents, the copies and notarized translations, except for the

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standardized documents (e.g passport, identity card). Also, original documents may not be requested, only copies. In case the applicant may not provide all the information the CA in the host country must try to obtain them from the CA in the home MS in the IMI system.

As a recognition procedure, the CA in the host CA must, within one month, confirm the receipt of the file and draw attention to the missing documents, if applicable. The deadline for the CA to grant the recognition or to decide on the application of any compensation measure is 4 months. Any rejection must be motivated. The rejection or the failure to make a decision, within the above-mentioned term, may be objected against in the national courts. The aptitude test may be applied on the conditions that the CA in the host MS, based on the documents received, determined which are the differences between the two qualifications that must be covered by the compensation measures. As the accounting activities require the knowledge of the applicable national legislation, the aptitude test is a compensation measure used in most of the cases of recognition of such qualifications. In the opinion of the European Commission, the CA in the host MS must organize at least two sessions of aptitude test per year. For this process of recognition and the organization of the aptitude test, the CA must levy a tax on condition it does not exceed the costs and it is not discriminatory to their own nationals in similar situations.

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Once obtained the recognition of the qualification, the applicant may practice the profession on the same conditions with the ones having achieved the qualification in the host MS, the professional regulations in the host MS being applicable, including the professional title in that country.

In table 3.2 we present the characteristics of the process of the recognition of the accounting qualifications in the 3 analyzed MSs which have regulated professions, because in a country where the profession is not regulated (Denmark, Germany, Spain), the access to the market is free. A person wanting to provide accounting services in Great Britain must not go through the process of the recognition of the qualification unless they want to become a member of the 5 institutes to use the professional title they confer. Table 3.2 Requirements for the recognition of the qualification for the permanent establishment/provision of accounting services in the analyzed MS which have regulated accounting professions MS CA for the recognition of the qualifications Procedure for the recognition of qualifications CA for the aptitude test

Austria

Italy

Romania

Ministry of Justice

CECCAR

Aptitude test

CNDCEC

CECCAR

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Test form Main subjects

Oral Relevant Austrian legislation

Written and oral Commercial, tax, profession laws, civil right, insolvency, ethical aspects and professional deontology

Test language Frequency of the aptitude tests Possibility of taking the tests

German Upon request

Italian Twice a year

Oral (interview) Commercial, accounting and tax laws + case study of accounting issues, tax, organization and operation of companies and the operation and organization of CECCAR N/A As per requests

Yes

Source of information: FEE â&#x20AC;&#x201C; Key Features on Structure and Organisation of the Accountancy Profession across 30 European countries, 26 March 2012 for Italy; PK for Austria, CECCAR for Romania

In case of the temporary/occasional provision of accounting services, there is no obligation of requesting the recognition of the qualification but in some countries, the obligation to submit a statement in the host country and to renew it annually if applicable. In the IMI system there has been no registration of temporary provision in case of the accounting professions, that is why there are no statistics of the mobility for temporary provision.

In table 3.3. we present the provisions on the temporary provision of the accounting services in the analyzed 3 MSs with regulated accounting professions.

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Table 3.3 Requirements for the temporary provision of accounting services in the analyzed EU MSs where the professions are regulated MS

Austria

Italy

Romania

Yes – annual renewal

No, only requests for information to the client NO

Personal data Qualification Services to be provided Professional insurance Upon the first statement or modification: identity document, establishment in the home country, proof that there is no temporary/final interdiction of practice or penalty

Personal data Services to be provided Professional insurance

CA for the right of temporary provision Verifications

Ministry of Justice

Permits

Compliance with the regulations in the host MS

Cooperation with CNDCEC and territory branches

Pro-forma statement Requested data

Requested documents

Proof of citizenship in the MS of the EEA, Switzerland; Attestation of proficiency in Romanian; proof of professional qualification; proof of stable domicile in a MS of the EEA/Switzerland proof that there is no temporary/final interdiction of practice, proof of activity specific to the accounting position of at least 2 years in the last 10 years, if the profession is not regulated in the residence country CECCAR

Yes, in cooperation with other CA in other MSs Yes

Source of information: FEE – Key Features on Structure and Organisation of the Accountancy Profession across 30 European countries, 26 March 2012

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A possibility, simpler than the legal way, to make claims against a decision on the recognition of the qualification, considered not compliant with the Directive 2005/36/EC on the recognition of professional qualifications, is to address the SOLVIT syste,. SOLVIT is an online network, operating since July 2002, where the EU MSs cooperate to settle, in a pre-legal phase the problems created by the incorrect application of or the failure to apply by the public authorities, the community law regarding the Internal Market. There is SOLVIT centre in each EU MS, as well as in Norway, Iceland and Liechtenstein. The centres are part of the central administration and must provide solutions to the problems raised by citizens or the companies within 10 weeks, and the use of the network is free.

The SOLVIT centre in Romania is with the Ministry of European Affairs (it may be contacted at e-mail solvit@dae.gov.ro).

The conditions for the operation of the SOLVIT mechanism are: 

to deal with the non-application or the improper application of the European law by the administration of a member state,



to deal with cross-border case,



there must not be any action for settlement.

The cross-border character does not suppose that the petitioner must be in a different MS that the one of the issue. It is enough there to be a

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strange element to make applicable the provisions of the community law (for example, a Romanian citizen wants to practice in Germany and they have difficulties of employment). The operation of the SOLVIT system is presented in the chart below.

Source:

http://www.romania-actualitati.ro/conceptul_de_cetatenie_europeana-

50325 (on July 17, 2013)

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For example, if a Romanian citizen has a complaint against the internal market

regulations,

they

will

approach

SOLVIT

ROMANIA

(organization dealing with the case depending on the nationality of the petitioner). If a Romanian citizen obtained the qualification in Austria, they want to be employed in Germany and there is a complaint in this sense, they will approach the centre in Austria. The request will be analyzed and if considered that this case is a breach of the community law, they will contact the centre LEAD SOLVIT (the responsible SOLVIT centre). If they agree to the proposal, they will move forward, to the defendant authority. The client is assisted in a language they understand but it is more important there to be a responsible SOLVIT centre to be aware of the procedures to be followed and the authorities to be contacted to solve the problem. In order to obtain a good result, SOLVIT is based on the relation with the defendant authority. And this because it is an informal network and it does not have the authority of a judge.

The reasons for which not all claims may be settles: ď&#x201A;ˇ

certain issued depending on the legislation of a member state; if there can be no rapid solution, the case is considered non-settled;

ď&#x201A;ˇ

the defendant authority is not willing to collaborate, when the petitioner is advised to address the courts able to make the CA modify the conduct pertaining to the aspect in question.

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4. EXERCISING PROFESSIONS IN ACCOUNTING IN THE EU The regulated accounting professions are generally part of the category of liberal financial professions, which is why the accounting activity may be exercised either as a freelancer or as a partner or employee of an accounting services company (or accounting, financial audit, tax consultancy services company, according to the NACE code 692, which is registered and authorized to provide all these types of services). Hence, all the national registers where all those exercising regulated accounting professions are registered, include both natural entities and legal entities â&#x20AC;&#x201C; authorized accounting companies.

In spite of the differences in the regulation of the accounting services in the EU MSs, a high level of harmonization/standardization was obtained at the sectoral level, by the efforts of the international and European professional organizations in the field of accounting and financial audit.

At the global scale, International Accounting Standards Board â&#x20AC;&#x201C; IASB, the independent body for the normalization of standards within the IFRS Foundation, elaborates and publishes the international accounting standards (IAS), the international financial reporting standards (IFRS) and the corresponding undertakings (SICIFRIC).

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At the EU level, in order to harmonize the financial information presented by the entities applying IFRS, in order to provide a high level of transparency and comparability of the financial statements and, thus, an efficient operation of the capital market of the Community and the Internal Market, the accounting standards issued by IASB are subject to an analysis, as well as the official vote in the especially constituted committees at this level, the process finalizing in community regulations for the passing of standards. All the European regulations for the passing of standards published by IASB are issued based on the (CE) Regulation no. 1606/2002, where the international accounting standards are defined as the International Accounting Standards (IAS), the International Financial

Reporting

Standards

(IFRS)

and

the

corresponding

undertakings (SICIFRIC), the subsequent amendments to the respective standards and the corresponding undertakings, the future standards and the appropriate undertakings issued or passed by IASB.

The International Federation of Accountants, incorporated in 1977 by 63 founding members in 51 countries, has now 173 members and associated organizations in 129 countries and jurisdictions in the world, representing 2.5 million of accounting professionals in the public sector, education, in government structures and the private sector. In turn, the Fédération

des

Experts-comptables

Européens/Federation

European Accountants - FEE represents over 700,000 professionals in

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Europe through the 45 member organizations in 33 European countries and at the same time it plays the role of Regional Organization of IFAC.

IFAC provides the development of the public interest accounting professions: 

the development of the international public sector accounting standards (IPSA), international standards on auditing (ISA), international ethical standards (IES) and technical assistance for passing and use;



facilitating the collaboration and cooperation of member professional organizations;



collaboration and cooperation with other international organizations;



representing the interests of accounting and financial audit professionals at the international level.

That it\s why, they passed, practically at the international level, the Ethical Code of IFAC developed by The International Ethics Standards Board for Accountants (IESBA), independent body for the development of ethical standards and professional conduct of accountants and auditors, the 8 International Education Standards (IESs) developed (and presently under review) by International Accounting Education Standards Board (IAESB): 

IES1 - entry requirements to professional accounting education,

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

IES2 - initial professional development-technical competence,



IES3 - initial professional development-professional skills,



IES4 - initial professional development-professional values, ethics, and attitudes,



IES5 - initial professional development—practical experience,



IES6 - initial professional development – assessment of professional competence,



IES7 - continuing professional development,



IES8 - professional development for engagement partners responsible for audits of financial statements.

In table 4.1, we took from the FEE study and national sources, some additional information regarding the conditions for the exercise of accounting professions, as well as statistic data suggesting the dimension of the professional community of the qualified accounting in the 3 analyzed MSs with regulated accounting professions. Table 4.1 Conditions for the exercise of accounting professions in the analyzed MSs with regulated professions MS

Austria

Professional address

Yes, in any MS of EEA

Compulsory business infrastructure

The regulated accounting professions may be

Italy Yes, professional residence or address in Italy As freelancers or specialty companies, the majority of

Romania Yes, residence or permanent residence in Romania Freelancers (PFA) or in trade companies authorized by

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Professional liability insurance Number of qualified accountants

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exercised as shareholders in companies (which may include all the three professions and tax consultants and auditors members of KWT), as a soleshareholder company (and employee) or as a freelancer, all traders being members of WKO Yes

At the beginning of 2013, approximately 10,000 authorizations were issued fr the three new regulated professions Number of interns/year

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which small companies

CECCAR (NACE code 6920, the majority of the shareholders must be members of CECCAR, at leats 51% of the share capital held by them, the majority of the CA must be members of CECCAR)

Yes, for certain activities 198 esperto contabile + approc. 112,000 dottore commercialista

Yes for all activities

Approx. 26,000

35,249 expert accountants (of which 25,835 active) 5,342 licensed accountants (of which 1,387 active) Approx. 1,000 expert accountants + approx. 50 licensed accountants /year

Source of information: FEE â&#x20AC;&#x201C; Key Features on Structure and Organisation of the Accountancy Profession across 30 European countries, 26 March 2012; PK â&#x20AC;&#x201C; Independent accountancy in Austria

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5. CONCLUSIONS One of the main issues of the recognition of the profession of â&#x20AC;&#x153;accountantâ&#x20AC;? is that, at first sight, the legal framework of the accounting services seems unitary in Europe, whereas in reality it considerably varies in the context of the differences in the tax regulation and the legal system of the trade companies.

The CA for the accounting professions are public structures in some MSs or the professional associations competent according to the law in some MSs. If there is a ministry (e.g. Italy), the professional organizations may be invited to be involved in decisions.

In the field of continuing education and training, the assessment of the results is already largely used, due especially to the development of procedures independently, at the sectoral level, at the international plan (the international education standards developed by IAESB, the professional ethical code developed by IESBA, the high quality qualification

offered

the

British

institutes

and

recognized

internationally, especially those of ACCA). Thus, the national authorities tend to trust the diplomas and certificates issued by the national bodies of other MSs, facilitating thus the mobility of the professionals in the field of accounting services on the Single Internal Market of EU.

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From the point of view of the Directive 2005/36/EC on the recognition of qualifications, the accounting professions are subject to the general system for the recognition of professional qualifications, at the qualification level attesting the graduation of training courses at the secondary, post-secondary level, either in the technical and professional education or the university with a duration of 3 or 4 years or at least 4 years. Considering that the provision of accounting services supposes the knowledge of the commercial, tax and labour laws in the host MS, the aptitude test as a compensation measure in the recognition of qualifications achieve din a different member state is largely practiced.

The statistics of the IMI system on the processes of the recognition of qualifications

between

2008

and

2012

for

the

permanent

establishment/provision, show that the accounting professions have been among the most mobile professions registered in the IMI system up to now.

Moreover, the globalization process, on the one hand, and the new international regulation of the financial services, from the beginning of the financial and economic crisis in 2007, determine the need for the accounting professionals to follow the clients in the process of business internationalization.

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Bibliography 

Directive

2013/34/CE

the

annual

financial

statements,

consolidated financial statements and related reports of certain types of undertakings, at http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:182:0019: 0076:RO:PDF 

European Commission, Internal Market and Services DG (2010) – Group of Coordinators for the Recognition of Professional Qualifications – Frequently Asked Questions (Update 22 October 2010

–

MARKT

D/3418/6/2006-EN)

http://ec.europa.eu/internal_market/qualifications/docs/future/faq_en. pdf 

European Commission – User Guide, Directive 2005/36/EC, at http://ec.europa.eu/internal_market/qualifications/docs/guide/users_g uide_en.pdf



European Commission – Code of Conduct approved by the Group of Coordinators for the Directive 2005/36/EC on the Recognition of Professional Qualifications – National Administrative Practices Falling under Directive 2005/36/EC – at

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http://ec.europa.eu/internal_market/qualifications/docs/future/cocon_ en.pdf 

European Commission – Commission Staff Working Document on the

Transposition

and

Implementation

the

Professional

Qualifications Directive (Directive 2005/36/EC), Brussels, 22 /10/2010, SEC(2010) 1292, at http://ec.europa.eu/internal_market/qualifications/docs/evaluation/sta ff-working-doc_en.pdf 

DG Internal Market and Services – Revised Final Report – Study Evaluating the Professional Qualifications Directive against recent educational reforms in EU Member States, 28 October 2011, at http://ec.europa.eu/internal_market/qualifications/docs/policy_devel opments/final_report_en.pdf



DG Internal Market and Services - Final Report – Study to provide an Inventory of Reserves of Activities linked to professional qualifications requirements in 13 Member States & assessing their economic impact, January 2012, at http://ec.europa.eu/internal_market/qualifications/docs/news/201202 14-report_en.pdf; appendix H to the final report at

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http://ec.europa.eu/internal_market/qualifications/docs/news/201202 14-annex_en.pdf 

CECCAR - Codul etic naţional al profesioniştilor contabili (National Ethical Code of Accounting Professionals), Ed.a V-a revizuită şi adăugită (5th edition revised and amended), Ed. CECCAR 2011



CECCAR - GHID pentru pregătirea candidaţilor la examenul de acces la stagiul pentru obţinerea calităţii de expert contabil şi de contabil autorizat (GUIDE for the preparation of applicants to the examination for the access to the quality of expert accountant and licenced accountant), ediţia a II-a, revizuită (2nd edition, revised), Ed. CECCAR, Bucharest, 2013



CECCAR – Raport anual

2011 (Annual report 2011), at

http://ceccar.ro/ro/wpcontent/uploads/2011/09/Raport_anual_2012_ro.pdf 

CECCAR - Professional standard no. 21 – Mission of keeping books, drawing up and presenting the financial statements – Application Guide – 4th Edition, revised and amended, Ed. CECCAR, Bucharest, 2011

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CECCAR - Professional standard no. 22 – Mission of examining accounting, drawing up, signing and presenting the financial statements – Application Guide – 4th Edition, revised and amended, Ed. CECCAR, Bucharest, 2011



CECCAR - Professional standard no. 35 – Accounting expertise – Application Guide – 4th Edition, revised and amended, Ed. CECCAR, Bucharest, 2011



CECCAR - Professional standard no. 37 – Mission of assessing the company – Application Guide, Ed. CECCAR, Bucharest, 2011



FEE - Key Features on Structure and Organisation of the Accountancy Profession across 30 European countries, 26 March 2012, at http://www.fee.be/images/publications/qualification/Intro_Structure_ and_Organisation_of_the_Profession2732012401312.pdf



FRC – Key Facts and Trends in the Accountancy Profession, June 2013, at http://www.frc.org.uk/Our-Work/Publications/ProfessionalOversight/Key-Facts-and-Trends-in-the-AccountancyProfession.aspx

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IFAC, IESBA™ - Handbook of the Code of Ethics for Professional Accountants, 2013 Edition, May 2013, at http://www.ifac.org/sites/default/files/publications/files/2013IESBA-Handbook.pdf



IFAC, International Accounting Education Standards Board Handbook of International Education Pronouncements, 2010 Edition, August 2010, at http://www.ifac.org/sites/default/files/publications/files/handbookof-international-e-2.pdf



IFAC, IAESB - 2012 IAESB Annual Report: Enhancing Professional Accounting

Education,

August

2013,

https://www.ifac.org/sites/default/files/publications/files/IAESB2012-Annual-Report_0.pdf



IFAC - Handbook of International Public Sector Accounting Pronouncements, 2013 Edition, vol. I, at http://www.ifac.org/sites/default/files/publications/files/Volume%20 1_0.pdf

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CFE Professional Affairs Committee, editor Rudolf Reibel European Professional Affairs Handbook for Tax Advisers, 2nd edition, March 2013 

Law no. 149 of April 30, 2013 for approving of the Government Ordinance no. 23/2012 for amending and supplementing the Government Emergency Ordinance no. 90/2008 on statutory audit of annual financial situations and the consolidated financial situations and the Government Ordinance no. 65/1994 on the organization of accounting expertise activity and of the certified accountants and for amending other rules, Official Journal no. 257 of May 9, 2013

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Abbreviations AAT - Association of Accounting Technicians AC – Competent Authority (for one/several regulated professions) ACA - Associate of the Institute of Chartered Accountants in England and Wales (ICAEW intermediary qualification) ACCA – Association of Chartered Certified Accountants ANC – Autoritatea Naţională pentru Calificări (National Qualifications Authority) (din România) ASF - Autoritatea de Supraveghere Financiară (Financial Supervisory

Authority) (in Romania) BH - Buchhalter (Public finance accountant, profession registered in Austria on January 1, 2013) Bibu – Bilanzbuchhalter (Management accountant, profession registered in Austria on January 1, 2013) BibuG - Bilanzbuchhaltungsgesetz - (Law on management accounting in Austria) CAEN - Clasificarea Activităţilor din Economia Naţională (National Classification of Economic Activities) CAFR – Camera Auditorilor Financiari din România (Chamber of Financial Auditors of Romania) CAT - Certified Accounting Technician (qualification in Great Britain) CCF - Camera Consultanţilor Fiscali din România (Romanian Chamber of Tax Consultants)

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CE – Comisia Europeană (European Commission) CECCAR – Corpul Experţilor Contabili şi Contabililor Autorizaţi din România (Body of Expert and Licensed Accountants of Romania) CFAB – Certificate in Finance, Accountancy and Business (qualification in Great Britain) CIMA - Chartered Institute of Management Accountants CIPFA - Chartered Institute of Public Finance and Accountancy CNDCEC - Consilio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (National Board of Chartered Accountants and Accounting Consultants in Italy) CSIPPC – Consiliul de Supraveghere în Interes Public a Profesiei Contabile (in Romania) (Council for the Public Interest Oversight of the Accountancy Profession) CSPAAS - Consiliul pentru Supravegherea Publică a Activităţii de Audit Statutar (Council for Public Supervision of the Statutory Audit Activity) (in Romania, transformed in CSIPPC) DCG - diploma in accounting and management obtained in FRance DEC - chartered accountant diploma obtained in France after DSCG DG – General Directorate DSCG - higher diploma in accounting and management obtained after DCG in France EFP – professional education and training

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FEE – Fédération des Experts-comptables Européens/ Federation of European Accountants FPC – continuing professional training FRC – Financial Reporting Council GBH - Gewerblicher Buchhalter (Accounting technician, profession existing in Austria before January 1, 2013) IAESB – International Accounting Education Standards Board IAS - International Accounting Standards IASB - International Accounting Standards Board ICAEW - Institute of Chartered Accountants in England and Wales ICAS - Institute of Chartered Accountants of Scotland IESs – International Education Standards (developed by IAESB) IESBA - The International Ethics Standards Board for IFAC – International Federation of Accountants IFRS – International Financial Reporting Standards IMI – Internal Market Information system (information system of the Single Market in the EU) IPS - Institutul pentru Politici Sociale (in Romania) (Social Policies Institute) JO – Official Journal of EU KWT - Kammer der Wirtschaftstreuhänder (Chamber of Public Accountants in Austria)

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MEN – Ministerul Educaţiei Naţionale (in Romania) (Ministry of National Education) MO – Monitorul Oficial (in Romania) (Official Journal) OG - Ordonanţa Guvernului (in Romania) (Government Ordinance) OUG - Ordonanţă de Urgenţă a Guvernului (in Romania) (Emergency Government Ordinance) PK - Paritätischen Kommission Bilanzbuchhaltungsberufe (Parity Commission for Management Accountancy Professions

Austria) PNDPC - Programul Naţional de Dezvoltare Profesională Continuă al CECCAR (National Programme for Continuing Professional Development of CECCAR) POB - Professional Oversight Board PV - Personalverrechner (Payroll Accountant, profession registered in Austria on January 1, 2013) SBH - Selbständige Buchhalter (independent accounting technician, profession existing in Austria before January 1, 2013) SEE – Spaţiul Economic European (European Economic Area, all the MS of EU + Iceland, Liechtenstein, Norway) SICIFRIC - related interpretations of the International Financial Reporting Standards SM – Member State (of the European Union)

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European Social Fund POS DRU 2007-2013

Structural Instruments 2007 - 2013

UBIT - Unternehmensberater, Informationstechnologen und Buchhalter (Economic sector of information technology, consultancy and accounting of the Austrian Economic Chambers – WKO) UE – European Union WKO - Wirtschaftskammer Österreich (Austrian Economic Chambers) WT-Arl – Directive on the practice of accounting professions public in Austria WTBG - Wirtschaftstreuhandberufsgesetz (Public Accountants’ Statute of Professional Practice)

EUROPEAN UNION

ROMANIAN GOVERNMENT MINISTRY OF LABOUR, FAMILY, SOCIAL PROTECTION AND ELDERLY AMPOSDRU

European Social Fund POS DRU 2007-2013

Structural Instruments 2007 - 2013

Useful Links 

CE Regulations for the international accounting standards – http://ec.europa.eu/internal_market/accounting/legal_framework/ regulations_adopting_ias/original_text_en.htm

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List of national bodies for public interest supervision http://ec.europa.eu/internal_market/auditing/links/index_en.htm

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EC database with regulated professions in the MS – http://ec.europa.eu/internal_market/qualifications/regprof/index. cfm?newlang=en

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National Contact Points for the recognition of qualifications in the MS – http://ec.europa.eu/internal_market/qualifications/contact/nationa l_contact_points_en.htm

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SOLVIT centers in the MS - http://ec.europa.eu/solvit

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PK Austria – http://www.bilanzbuchhaltung.or.at/de/desktopdefault.aspx

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CECCAR - http://ceccar.ro/ro

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CNDCEC - http://www.cndcec.it/Portal/Default.aspx