Are you interested in pursuing a career in accounting? If the answer is yes, you have several excellent options to consider: the Institute of Chartered Accountants of India (ICAI), the Association of Chartered Certified Accountants (ACCA), and the Institute of Chartered Accountants of Nepal (ICAN). In this informative piece, we will present an overview of each institution, outlining the resources and curriculum they provide, the duration of their programs, job prospects, and average salaries.
Moreover, we will conduct a comprehensive comparison of the advantages and disadvantages of each institution, helping you determine which one aligns best with your aspirations. By the end of this article, you will have a clear understanding of the offerings of each institution and be well-prepared to make an informed decision about your future accounting career. Let's begin this exploration now!
Overview
Institute of Chartered Accountants of India (ICAI)
Among the numerous institutions providing chartered accountancy programs in India, one institution stands out for its exceptional reputation: the Institute of Chartered Accountants of India (ICAI). Since its inception in 1949, ICAI has played a pivotal role in shaping the accounting profession within India and has gained recognition that extends far beyond national boundaries.
Association of Chartered Certified Accountants (ACCA)
Diverging from the predominantly Indian-centric approach of ICAI, the Association of Chartered Certified Accountants (ACCA) adopts a broader global perspective. With its roots tracing back to 1904 in the United Kingdom, ACCA has earned widespread acclaim as an esteemed international institution for accountancy. It operates across more than 180 countries around the world, reflecting its truly global presence.
Institute of Chartered Accountants of Nepal (ICAN)
Individuals aspiring to work and establish themselves in Nepal will find the Institute of Chartered Accountants of Nepal (ICAN) to be a prestigious institution. Established in 1997 under the Nepal Chartered Accountants Act, ICAN offers comprehensive education and training to equip individuals with the necessary knowledge and expertise for success in the Nepali accounting sector. However, it's worth noting that ICAN's recognition beyond Nepal's borders is presently restricted, and individuals seeking international opportunities may need to explore alternative options.
Accountancy Program Curriculum and Exams
ICAI
The Institute of Chartered Accountants of India (ICAI) offers a thorough and well-rounded curriculum tailored to prepare students for a successful career in chartered accountancy. The ICAI curriculum is structured into three distinct levels: Foundation, Intermediate, and Final. Each level consists of a designated set of papers that students must successfully complete as part of their progression through the program.
The Foundation Level
At the Foundation level, students are required to undertake four papers as part of their curriculum in the Institute of Chartered Accountants of India (ICAI). These papers include:
- Principles and Practice of Accounting
- Business Laws and Business Correspondence and Reporting
- Business Mathematics and Logical Reasoning and Statistics
- Business Economics and Business and Commercial Knowledge
Successful completion of these papers is essential for progressing through the ICAI program.
The Intermediate Level
At the Intermediate level of the Institute of Chartered Accountants of India (ICAI) program, students encounter two distinct groups of papers. Group I encompasses four papers, namely:
- Accounting
- Corporate and Other Laws
- Cost and Management Accounting
- Taxation
Group II, on the other hand, comprises three papers:
- Advanced Accounting
- Auditing and Assurance
- Enterprise Information Systems and Strategic Management, and Financial Management and Economics for Finance
These papers within each group collectively form the core curriculum of the Intermediate level, providing students with a comprehensive understanding of key concepts and skills necessary for their future endeavors in chartered accountancy.
The Final Level
Within the Final level of the Institute of Chartered Accountants of India (ICAI) program, students encounter two groups of papers. Group I comprises four papers:
- Financial Reporting
- Strategic Financial Management
- Advanced Auditing and Professional Ethics
- Corporate and Economic Laws
Meanwhile, Group II consists of four papers:
- Strategic Cost Management and Performance Evaluation
- Elective Papers
- Direct Tax Laws and International Taxation
- Indirect Tax Laws
The papers within each group at the Final level encompass essential topics that enable students to develop a deep understanding of financial management, reporting, auditing, ethics, taxation, and legal aspects relevant to the field of chartered accountancy.
In addition to the above papers, students are also required to complete a practical training program and pass orientation and IT training before being eligible for membership as a chartered accountant.
ACCA
The curriculum of the Association of Chartered Certified Accountants (ACCA) is strategically developed to equip students for a successful career in the fields of accountancy and finance. It emphasizes the acquisition of technical knowledge, the cultivation of professional skills, and the integration of ethical values. The ACCA curriculum is structured into two main levels: Fundamentals and Professional. These levels serve as progressive stages in the educational journey of ACCA students.
The Fundamentals
At the Fundamentals level of the Association of Chartered Certified Accountants (ACCA) curriculum, students encounter two modules: Knowledge and Skills. The Knowledge module encompasses three papers:
- Business and Technology
- Financial Accounting
- Management Accounting
The Skills module, on the other hand, comprises six papers:
- Audit and Assurance
- Corporate and Business Law
- Financial Reporting
- Financial Management
- Performance Management
- Taxation
Successful completion of these papers in both the Knowledge and Skills modules is essential for progressing to the Professional level of the ACCA program. These papers collectively lay the foundation for students' understanding of key concepts and competencies in the field of accountancy.
The Professional
Within the Professional level of the Association of Chartered Certified Accountants (ACCA) curriculum, students encounter two distinct modules: Essentials and Options.
The Essentials module comprises three mandatory papers:
- Strategic Business Leader
- Strategic Business Reporting
- Ethics and Professional Skills
These papers are crucial for developing advanced knowledge and skills in strategic decision-making, financial reporting, and ethical professionalism.
The Options module consists of four papers, from which students must choose two:
- Advanced Financial Management
- Advanced Performance Management
- Advanced Taxation
- Advanced Audit and Assurance
This allows students to specialize in areas of particular interest or relevance to their career goals.
In addition to completing the required papers, students must also fulfill a minimum of three years of relevant practical experience. This practical experience provides students with real-world exposure and further develops their professional competencies. Upon meeting all requirements, students become eligible for ACCA membership, solidifying their professional standing in the field.
ICAN
The Institute of Chartered Accountants of Nepal (ICAN) has developed a curriculum tailored to equip students for a successful career in the fields of accountancy and finance. The ICAN curriculum places emphasis on the acquisition of technical knowledge, the development of professional skills, and the integration of ethical values. It is structured into three distinct levels: Foundation, Intermediate, and Final. These levels serve as progressive stages in the educational journey of ICAN students.
The Foundation Level
At the Foundation level of the Institute of Chartered Accountants of Nepal (ICAN) curriculum, students are required to undertake four papers that form the core foundation of their studies. These papers include:
- Fundamentals of Accounting
- Mercantile Laws and Fundamentals of Economics
- Fundamentals of Management
- Commercial Mathematics and Statistics
These papers encompass essential subjects, providing students with a strong grounding in accounting principles, legal aspects, economic fundamentals, management principles, and mathematical and statistical techniques relevant to the field of chartered accountancy. Successful completion of these papers is vital for progressing further in the ICAN program.
The Intermediate Level
Within the Intermediate level of the Institute of Chartered Accountants of Nepal (ICAN) curriculum, students encounter two groups of papers. Group I consists of three papers:
- Advanced Accounting
- Audit and Assurance
- Corporate and Other Laws
Group II, on the other hand, comprises four papers:
- Financial Management
- Cost and Management Accounting
- Business Communication and Marketing
- Income Tax and Vat
These papers within each group delve into advanced topics that further develop students' understanding of accounting principles, auditing and assurance, corporate laws, financial management, cost and management accounting, business communication, marketing, and taxation. Successfully completing these papers at the Intermediate level is crucial for progressing in the ICAN program.
The Final Level
The Final level of the Institute of Chartered Accountants of Nepal (ICAN) curriculum is structured into two groups. Group I comprises four papers:
- Advanced Financial Reporting
- Advanced Financial Management
- Advanced Audit and Assurance
- Corporate Laws
Group II consists of four papers:
- Management Information and Communication System
- Advanced Taxation
- Advanced Cost and Management Accounting
- Strategic Management and Decision Making Analysis
These papers encompass advanced topics in financial reporting, financial management, auditing and assurance, corporate laws, management information systems, taxation, cost and management accounting, and strategic management.
In addition to completing the required papers, students are also required to fulfill a minimum of three years of practical training under the guidance of a practicing chartered accountant. This practical training provides valuable real-world experience and further enhances the professional competencies of students. Upon fulfilling all requirements, students become eligible for membership with ICAN, establishing their professional standing in the field.
Course Completion Time Period
ICAI
The duration of the course varies for each institution based on program structure and individual circumstances. For the Chartered Accountancy (CA) program offered by the Institute of Chartered Accountants of India (ICAI), the typical course duration ranges from 4.5 to 5 years. However, the actual duration may depend on the student's progress and ability to successfully clear the exams.
ACCA
The Association of Chartered Certified Accountants (ACCA) offers a flexible course duration that allows students to complete the qualification according to their own schedule. On average, it takes approximately 3 to 4 years to successfully complete all the exams and fulfill the practical experience requirements of the ACCA program. The duration may vary depending on the individual's study pace and commitment to meeting the program's requirements.
ICAN
The Chartered Accountancy program offered by the Institute of Chartered Accountants of Nepal (ICAN) typically spans a duration of 4.5 to 5 years. It's important to note that these timeframes are general estimates and may be influenced by individual factors such as study habits, exam performance, and availability of practical training opportunities.
Comparing the duration of the three courses, the ACCA program offers the most convenient completion period. ACCA allows students to study at their own pace, providing a flexible schedule. The course can typically be completed within three to four years, depending on the number of papers a student chooses to take in each examination sitting.
Enrollment Qualifications
ICAI
The Institute of Chartered Accountants of India (ICAI) has eligibility criteria that must be met to enroll in their program. The eligibility criteria are as follows:
- Educational Qualification: Candidates must have completed their 10+2 examination or any other equivalent examination recognized by the ICAI.
- Age Limit: There is no age limit for candidates to enroll in the ICAI program.
- Registration: Candidates must register with the Board of Studies (BoS) of the ICAI to start their CA course.
- Foundation Course: Candidates must complete the Foundation Course to be eligible for the Intermediate Course.
- Communication and IT Training: Candidates must complete a four-week Integrated Course on Information Technology and Soft Skills (ICITSS) before appearing for the Intermediate Examination.
- Practical Training: Candidates must complete three years of practical training after passing the Intermediate Examination.
- Final Examination: Candidates must pass the Final Examination after completing the practical training to become a member of the ICAI.
Meeting these eligibility criteria is necessary for enrolling in the ICAI program and becoming a chartered accountant.
ACCA
The Association of Chartered Certified Accountants (ACCA) has eligibility criteria that must be met to enroll in their program. The eligibility criteria are as follows:
- Educational Qualification: Candidates must have completed their 10+2 examination or any other equivalent examination recognized by the ACCA.
- English Proficiency: Candidates must have a good understanding of English, as the program and exams are conducted in English.
- Age Limit: There is no age limit for candidates to enroll in the ACCA program.
- Registration: Candidates must register with the ACCA to start their qualification.
- Foundation Level: Candidates with no prior qualifications or experience in accounting must complete the Foundation Level, which includes knowledge and skills in finance, accounting, and business.
- Professional Level: Candidates must complete a minimum of three exams at the Professional Level to be eligible for the ACCA membership.
- Practical Experience: Candidates must complete a minimum of three years of practical experience in accounting or finance to become a member of the ACCA.
Fulfilling these eligibility requirements is a prerequisite for enrolling in the ACCA program.
ICAN
The Institute of Chartered Accountants of Nepal (ICAN) has eligibility criteria that must be met to enroll in their program. The eligibility criteria are as follows:
- Educational Qualification: To enroll in the ICAN program, candidates must have completed their 10+2 examination or any other equivalent examination recognized by ICAN.
- English Proficiency: Candidates must have a good understanding of English, as the program and exams are conducted in English.
- Age Limit: Candidates must be at least 16 years old to enroll in the ICAN program.
- Registration: Candidates must register with ICAN to start their CA course.
- Foundation Level: Candidates must complete the Foundation Level, which includes knowledge and skills in accounting, economics, and commercial law.
- Intermediate Level: Candidates must complete the Intermediate Level, which includes knowledge and skills in financial accounting, cost accounting, and tax.
- Final Level: Candidates must complete the Final Level, which includes knowledge and skills in advanced financial management, audit, and professional ethics.
- Practical Training: Candidates must complete three years of practical training after passing the Intermediate Level.
- Professional Ethics: Candidates must also complete a course on Professional Ethics before becoming a member of ICAN.
To enroll in the ICAN program and become a chartered accountant in Nepal, meeting these eligibility criteria is crucial.
Tuition Fees
ICAI
The fee structure for the course offered by the Institute of Chartered Accountants of India (ICAI) comprises several components, including registration fees, annual membership fees, examination fees, and additional charges. According to the official website of ICAI, the fee for the CA Foundation course is approximately INR 9,800. For the Intermediate and Final courses, the fees are approximately INR 18,000 and INR 22,000, respectively. It is important to note that these fee amounts are approximate and subject to change based on various factors, such as the mode of study (self-study or coaching), location, and other related expenses.
ACCA
The fee structure for ACCA exams is determined by several factors, including the exam location, exam level, and whether the student is a registered ACCA member. According to the ACCA Global website, the initial registration fee is approximately NPR 7,262.81, while the re-registration fee is around NPR 14,364. The standard annual subscription fee for 2023 is approximately NPR 19,690.29, and there is a reduced first-year subscription fee for 2023, which amounts to approximately NPR 12,911.67. Therefore, the total fee for the initial registration fee, standard annual subscription fee, and reduced first-year subscription fee for 2023 would be approximately NPR 39,864.77. It is important to note that the fees mentioned on the website are subject to change, and students are advised to refer to the official website for the most up-to-date fee structure. Additionally, students may also incur additional costs such as study materials, college tuition fees, course paper fees, and other related expenses.
ICAN
The fee structure for the Institute of Chartered Accountants of Nepal (ICAN) varies depending on the level of membership and other factors. As of March 2023, the registration fee for ICAN membership is NPR 10,000. An annual membership fee of NPR 8,000 is also applicable, and members are required to pay a one-time admission fee of NPR 5,000. Additionally, students are responsible for paying exam fees, which differ based on the level of the exam they are undertaking. It is important to note that there may be additional costs associated with ICAN studies, such as college tuition fees and study materials.
Career Opportunities
Graduates of the Chartered Accountancy (CA) course have a wide array of career opportunities available to them across various industries and sectors. These opportunities encompass fields such as auditing, taxation, investment, and finance, both nationally and internationally. The specialized knowledge and skills acquired throughout the CA program equip graduates with the necessary tools to excel in these demanding career paths and achieve success in the professional world.
CA Worldwide
Chartered Accountants have a wide range of job options, including:
- Auditing
- Taxation
- Investment
- Finance
CAs possess specialized knowledge and skills, allowing them to perform the following tasks:
- Financial analysis
- Preparation of financial statements
- Offer advice
- Provide strategic guidance to businesses
The CA course provides in-depth knowledge of the following areas:
- Accounting principles
- Financial management
- Taxation
- Business laws
Additionally, graduates can either start their own practice or work for a corporation, making it a highly versatile degree.
ACCA
ACCA is a globally recognized qualification that allows individuals to work anywhere in the world. The ACCA body has a strong network of over 8,500 approved employers as listed on the ACCA website, providing numerous job opportunities to its members abroad.
With over 18 career profiles available, students are prepared for senior management positions, including the chief financial officer (CFO) role. ACCA graduates can work as:
- Management accountant
- Finance manager
- Financial analyst
- Consultant
- Adviser
In Nepal, ACCA graduates have numerous job opportunities in various sectors such as:
- Finance sector
- Consulting firms
- Banking industry
- Healthcare industry
- IT sector
- Insurance sector
- Public sector
- Business management
CA in Nepal
A career in Chartered Accountancy (CA) in Nepal offers a diverse range of opportunities in various areas, including:
- Entrepreneurship
- Management consulting
- Taxation
- Cost accounting
- Financial and tax accountancy
- Trustee
- Advisor
- Consultant
- Representative
- Valuator
Employment opportunities are available in both the private and public sectors, such as manufacturing companies, trading businesses, governmental banks, governmental offices, audit firms, financial institutions, insurance companies, and corporate management. Additionally, career paths for CAs can include teaching, forensic accounting, property valuation, and political appointments.
Net Pay
India
In India, Chartered Accountants (CAs) can expect an average starting salary of approximately INR 7-8 lakhs per annum. As CAs gain more experience, their earning potential increases, with experienced professionals earning salaries ranging from INR 15-30 lakhs per annum. At the top-level, CAs with extensive years of experience can even earn salaries exceeding INR 1 crore per annum. It is important to note that these salary figures are approximate and can vary based on factors such as job role, industry, location, and individual capabilities.
ACCA
In Nepal, recent graduates of the Association of Chartered Certified Accountants (ACCA) can anticipate starting salaries ranging from NPR 15,000 to NPR 30,000, depending on the organization they join. As ACCA professionals gain experience, their earning potential can exceed NPR 50,000, taking into account factors such as skills, competition, and organizational demands.
According to the ACCA Global Salary and Career Survey 2021, ACCA affiliates worldwide can expect to earn an average annual salary of approximately NPR 52.5 lakhs to NPR 60 lakhs per annum, including salary, bonuses, and other benefits. Once individuals have acquired three years of relevant work experience and become full-fledged members of ACCA, they can anticipate earning an average annual salary of approximately NPR 82.5 lakhs to NPR 90 lakhs globally. It is important to note that these salary figures are indicative and may vary depending on factors such as industry, location, and individual performance.
Nepal
The average annual salary of a Chartered Accountant (CA) in Nepal falls within the range of NPR 5 lakhs to NPR 15 lakhs. These figures, in comparison to the salaries earned by experienced CAs in India and full-fledged members of ACCA, are relatively lower. However, it is important to recognize that these salary estimates are approximate and can vary significantly based on individual circumstances, including factors such as experience, skills, job performance, and the size of the company.
Furthermore, it should be noted that ICAN members in Nepal have opportunities to work in government organizations and private sector companies, which can have an impact on their salaries. Considering the information presented, experienced CAs in India generally have the potential to earn higher salaries in comparison to ACCA affiliates and Chartered Accountants in Nepal.
Pass Percentage
Pass percentages of ICAI, ACCA, and ICAN vary based on factors like exam difficulty, attempts taken, and study material quality.
ICAI
The pass percentage of the Indian CA Final exams conducted in November 2021 was 13.50% for Group I and 13.25% for Group II. It is worth noting that the pass percentage for the final level exams is generally low due to the difficulty level of the exams.
ACCA
Compared to the ICAI exams, the pass rates for ACCA exams are relatively higher. The September 2021 exam session saw impressive pass rates for ACCA: 89% for Applied Knowledge exams, 80% for Applied Skills exams, and 48% for Strategic Professional exams. These figures demonstrate the effectiveness of the ACCA program's flexibility and broad-based curriculum in accounting.
ICAN
Similarly, ICAN's foundation-level exams have a pass percentage of around 50%, while the intermediate-level exams have a pass percentage of around 55%. The final level exams have a pass percentage of around 32%, making them more challenging to pass. ICAN's exams are relatively difficult, but those who pass them can expect to have a strong foundation in accounting and an advantage in the job market.
Evaluating the facts given above, ACCA tends to have higher pass rates compared to ICAI, while ICAN's pass percentage falls somewhere in between. While these pass rates can give some indication of the difficulty level of the exams, it's important to keep in mind that they are only one factor to consider when choosing a professional accounting qualification.
Number of Total Members of Each Institutions
Based on the most recent data, the Institute of Chartered Accountants of India (ICAI) has a membership of over 319,000 as of 2021. The Association of Chartered Certified Accountants (ACCA) has a membership of over 219,000 as of 2021. The Institute of Chartered Accountants of Nepal (ICAN) has a membership of over 10,000 in Nepal. It is important to keep in mind that these membership figures can change over time and may not be completely up to date. Nonetheless, they provide a general understanding of the relative size and reach of each organization within the accounting profession.
Conclusion
Embarking on a career journey can be likened to a thrilling rollercoaster ride, complete with unexpected twists and turns. Nevertheless, we are here to provide you with valuable information and guidance, serving as your reliable compass to help you navigate the path ahead with greater confidence and preparedness.
