ISLAMABAD: The Institute of Cost and Management Accountants of Pakistan (ICMAP) has applied for trade mark registration of the Chartered Accountant title with the Government of Pakistan’s trademark registration authority.
This action has irked many members of the Institute of Chartered Accountant of Pakistan (ICAP) as they claim that the title was by default, allocated to ICAP members under the CA ordinance 1961.
As per the chapter 2 clause 7 of the CA ordinance 1961, Members to be known as Chartered Accountants, “Every member of the Institute in practice shall, and any other member may, use the designation of a Chartered Accountant and no member using such designation shall use any other designation, whether in addition thereto or in substitution therefore.”
The clause further states, “Provided that nothing contained in this section shall be deemed to prohibit any such person from adding any other description or designatory letters to his name, if entitled thereto, to indicate membership of such other institute of accountancy, whether in Pakistan or elsewhere as may be recognized in this behalf by the Council, or any other qualification that he may possess, or to prodhit a firm, all the partners of which are members of the institute and in practice, from being known by its firm name as Chartered Accountants.”
There were rumors circulating that some members of ICAP have been urging the institute to isolate the practicing members of ICMAP in the industry as a retaliative step.
However, the President of ICAP, Ashfaq Tola, while commenting on the issue told Profit, “I don’t think there is friction between Institutes and we don’t have any issues with practicing members of ICMAP.”
Referring to the trademark issue, he added, “This is a legal issue and it will be handled legally.”
Ali Latif, a senior Chartered Accountant and member of the ICAP’s governing council commented on the issue, “ICMAP is employing deceptive practices to exploit and benefit from the reputation created in the market by ICAP. Last year they tried to acquire audit rights through back door politics, but they failed to do so. Now this is another desperate step to revive their falling reputation amongst students and industry professionals.”
Profit reached out to President of ICMAP, Zia ul Mustafa Awan, He stated. “The rationale behind filing the patent was to protect the CA title from being misused by foreign accountancy bodies who have entered the Pakistani market and are awarding the title at will.”
“Our aim is not to create friction with ICAP as the objective of both organisations aim for the betterment of the accountancy profession. If ICAP has this (CA) trademark registered for itself then our application will automatically be rejected. Therefore, ICAP members shouldn’t be concerned.” he added.
To get some context, there needs to be an assessment of the difference between these certifications and those awarded by foreign institutes.
Currently, ICMA has around 5,000 registered members while ICAP has around 8,000 members. Sajjeed Aslam, head of ACCA Pakistan, while talking to profit in 2018 had stated that in Pakistan ACCA had around 35,000 members.
ICAP being the oldest institute of all (in Pakistan) has maintained a tight grip over the corporate sectors of Pakistan in terms of recognition of its qualification.
However, other institutes like ACCA and ICMAP have followed suit in terms of gaining recognition for their qualifications from HEC as well as the corporate sectors of Pakistan.
ICAP is widely accepted as the premier institute when it comes to Accountancy in Pakistan. The practicing members of this institute are entitled to conduct audits and also provide other tax, legal, accounting and support services to clients.
ICMAP, on the other hand, has been in the shadows of ICAP. Though the institute’s members are recognised and authorised to provide audit, legal, accounting and other support services, there are some statutory limits to these.
The primary bone of contention between the two institutions, for long, has been the license to conduct audits. As per SECP regulations and Companies Act, ICAP registered members and firms subject to certain criterias are authorized to conduct audits of any type in the Pakistani jurisdiction.
However, for ICMAP, the audit rights are restricted to cost accounts and companies having share capital upto Rs 3 million.
Does it make any difference? In business terms, it does. The accounting, consultancy and audit firms thrive on the fees of audits assignment and ancillary services provided to the audit clients.
In ICMAP’s case its ability to conduct audits and provide these services is restricted by the law as it doesn’t have the legal right to conduct audits of large entities like those listed on the stock exchange and banks. Thus, its members lose out on a considerable market.
ICAP on the other hand is keen to protect its monopoly in the market and is adamant on holding on to the blanket audit rights.
ACCA, the most popular foreign accountancy body in Pakistan, is sailing a different boat altogether. It doesn’t have any special legal rights for services in Pakistan, but still it has the most members out of all 3 accounting bodies due to its global appeal and relatively better exam pass ratio.
This is not the first time that the accounting bodies in the country have come face to face. In September 2012, the Competition Commission of Pakistan (CCP) brought charges against ICAP for a directive that the latter had issued in July that same year. ICAP’s notice issued to its members and chartered accountants had asked them to refrain from hiring and engaging accounting trainees from any non-ICAP institution, ‘particularly trainees from foreign institutes or any other accounting body of a similar nature’.
Also Read: ACCAs will outnumber CAs in Pakistan this year. What does that mean for the accounting market?
ICMAP is trying to go for form over substance. The trade mark will remain with ICAP.
Yes. You say right. I launched ICMA members they said there is a best method only lied for applying a core word, CA, then IPO will mention the list already trade marked i.e CA (ICAP)….Parliamentary titled, Association CA (ACCA)…. HEC recognized, Chartered Management Accountant (CIMA) vacant and may be titled to ICMA that they want. Members also narrated there is time of ICMA councils elections and moreover they said that the value of institute is being fastly recognizing in the near future because other foreign capable professionals (Fellow ACCAs & Associate CIMAs) increasingly acquiring ICMA degree after sitting only in one exam. They said, we need neither want the word Chartered Accountant, which is recognized in the whole common wealth world for compliance accountants ie Tax & Corporate Laws, ISA, IFRS & company’s SOPs compliance. While we are Management Accountant ie Product & Project specific cost decision maker, Budgeting & Standard costing technicians.
Without prejudice, both the institutions are esteemed in their professions but some individuals create such things in order to set up a frictional environment. They must understand the motives behind such moves. Br Ashfaq Tolla has shown the right grace in the given situation.
Both parties have its own worth in the market. ICMAP should consult IFAC to resolve this issue.
Why ICAP is so jealous towards ICMAP over audit and other issues, there is a huge untapped market i.e public sector audit that’s conducted and controlled by non professional HR, why ICAP does not raise this issue before competent forum, the whole ICMAP family shall support it.
Both the titles have their own worth and significance. The ICAP should not monopolies the accountancy profession.
It is unfortunate to see on petty matters they are arguing. This issue come as surprise rather as a funny act by ICMAP.
Wonder in which world both are living as already accountancy profession under threat and new emerging technolgies paving their way though in Pakistan things move bit slow but eventually it would impact. Blockchain, AI, RPA, Cybersecurity, PCI DSS, ISO 27001, Data analytics, Data governance etc are the areas to explore where both institutes can colloborate and find huge new opportunities to train students & members & be more useful for Pakistan & Internationally rather traditional old fashioned accounting, tax and audit, which would require fewer resources but top class resources in future and wont accomodate all. Find new avanues. Thanks
Just one word “Grow-up”
Title does’t matter…. The real thing is professional competncy,. Both institutions growing good professionals… B professional…
CIMA used word chartered management accountant and they are capturing market in Pakistan. why ICMAP is not given right to use the word chartered?
Both the bodies have it’s respective demand and value in the Corporate World. We should have to accepts the upcoming challenging in Business sectors and creat new and sole strategies to meet the upcoming diversification.
Both the professional should have something unique quality .
Both institutions are most decorated and well reputed in their field. Government must take necessary steps to maintain the quality and outreach all market segments keeping performance of CA trade mark in check through a legal procedure through a governing body.
Education should not be restricted to one or two institutions.
There are many members of ICAP who are also the member of ICMAP at the same time like Asif Kasbati sb. The matter is not so big it can be resolved with mutual understanding. Both organizations are ours.
ICAP’s mandate is production of Public Accountants and self governance of Auditing profession, though many members go for “professional accountants in business”. ICMAP’s mandate is production of “professional accountants in business”.
Alphabets “CA” are and has long been associated with Public Accounting / Auditing. That should remain so. Bickering over the alphabets will damage the overall profession.
In layman’s terms; a highly qualified molecular biologist or x-rays technician should not be using title Dr. as this may confuse ordinary people. ICMAP members have their own value and domain, their institution should not create unnecessary fuss.
This doesn’t make any sense. The competence level of ICAP Students is far ahead of ICMAP students. Name of Chartered Accountancy is mostly given to a single institute and for sure and by far ICAP students deserve it. Full stop 🛑
Egoistic maniac and ancient times jealousy of icap at its peak..😂 In the long run all certifications are on same level with experience wether you r a ca or cma or acca. But that typical superiority complex minded mentality of icap wont recognise.
Honestly, I’ve hired ACCA’s at the same wages I paid to my chauffeurs. That EGO of Waleed Riaz has substance.
NIMRA, your words are humilated. ICAP, ICMAP, ACCA, CPA, CMA CIMA or other accountancy bodies are imparting education.
ICMA and ICAP are both professional bodies in Pakistan. Both fields have their own worth. It can be resolved by mutual understanding.
ICMAP AND ICAP both have its own.significance and worth in market. I think rather to create frictional environment and making disputes with each other, they must think how to produce worlds best accountants which rise the name of PAKISTAN globally as well.as of institute. They must focus global challenges how to beat indian accountants in international market.
Being an outsider, I would say I have always seen and observed CA for chartered accountants. I have seen ICMA evolve much later and the level of effort, difficulty, repute of CA is far ahead of ICMA.
very Wrong Sir
I believe this matter of Chartered Managment Accountancy is being pending since along which is expected to be resolve now through legal action, but intention are clearly state the smell of insecurity of ICAP members same like had in some past events.
If CIMA can be chartered why not ICMAP.
Even certificate like ACCA can use Chartered with no objection.
Good.
I’m full agreed with ICAP
first I would like to clear that These are both professional bodies.But you can’t compare icap with CIMA. ICAP is a brand.. in CA has to work hard then iCMA.
It just clarifies the point that ICMAP management is useless. Internationally CAs are worthless in front of CMAs. The value of CMAs is immense. Yet since the day I joined we always were considered 2nd. We shouldn’t be wasting time in audits. We should have built our own brand.
Plz help me
ICAP should stop playing with the careers of other body members for the sake of keeping the bigger market chunk. And if ICAP really had confidence in the skills of its members, then it would never have taken measures like restrictions on the hiring of other body members.
There’s no friction between the accountancy bodies nor any misunderstanding. Every accountancy body is quite mature and in the industry for a very long period of time. If something is going wrong, look around the same accountancy bodies operating in UK and other developed countries.
Icap members can’t complete in business process with cma’s. CA are just auditors and have no other ability.
CA’s are everywhere, they are experts in Auditing, Accounting, Taxation, Consultancy, Corporate.
How can u say that CA’s are auditors and have no other ability? Just do some research on it.
I will agree if you said that just CA’s are auditors.
Element that CAs think make them premier is auditing actually. Auditing is core competency of CAs but not of CMA’s. Why you people do always strive for this unlogical comparison b/w CA and CMA? Core competencies of CMA’s are far more different and demanding than that of CA’s covering the fields of Financial Decision Making, organizational management, Cost controlling, Financial Risk hedging, Taxation, Strategic Management, Profit Maximization, etc. Auditing is a by-field of CMAs. So, it will not be acceptable for ICAP having enhanced audit rights for ICMAP. So, comparison bw these two different qualifications is quite unlogical.
Agreed 👍💯
Haris Bhai you say absolutely right
Chairmam Fbr
CFO k electric
Cfo pia
Cfo murree bewrey
CEO Meezan Bank
CEO standard chartered
General secretary Honda Atlas ltd
Cfo Unilever Pakistani
Cfo Zong
Cfo telenor
and list goes on
All are Chartered accountats , They are not practicing audit but practicing Business accounting
Fun fact: Previous Chairman of Pakistan Cricket Board( PCB) Ehsaan Mani was also a Chartered accountant.
Since its birth, ICMAP has been acting like a cry-baby. Every second year precious time of Courts is wasted by ICMAP, who put them back to their place.
Nimra you say wrong. Actually Cost Accounting is a Father of All Accounts. So ICAP is our child. And we shall take our Title C.A (Cost Accountant) INSHA ALLAH.
REGARDS
Quite non professional statement
I think, until ICMAP makes training of students mandatory in any accountancy and audit firm, their members should not be given audit right. It is very simple an logical thing.
Actual title should be given to ICMAP because Cost Accountant is a actual accountant.
COST ACCOUNTING is the Mother of Account, and skills of accounting. Meanwhile Financial Accounting is as a Makeup of account s.
.
Cost Accountant knowledge of accounting is hundred time better than Chartered accountant.
There is very Massive difference between Cost Accounting & Financials accounting..
Cost Accounting is a Mother of all Accounts. And it’s provides the basic principles of Accounts. Without Cost Accounting Financials accounting can’t Exists.
Financial Accounting is a CHILD of COST ACCOUNTING. . SO That child should keep care of their Mother.
So that Title OF CA ( COST ACCOUNTANT) Should be go to ICMAP.
REGARDS
Kashif Masood
CFO (Pak Dairy & Bake industry)
Both professional bodies are the giants of corporate sector having their own worth and size and should never be compared with each other. The central competency of CMA’s is Financial Decision Making, Strategic Management, Organizational Management and Long Term Strategy Making. And that of CA’s is Financial Reporting and Financial Auditing. Development of our corporate sector is heavily based on the development of these two giants. So, efforts must be made to groom both of these rather than competing each other.
test
I launched ICMA members they said there is a best method only lied for applying a core word, CA, then IPO will mention the list already trade marked i.e CA (ICAP)….Parliamentary titled, Association CA (ACCA)…. HEC recognized, Chartered Management Accountant (CIMA) vacant and may be titled to ICMA that they want. Members also narrated there is time of ICMA councils elections and moreover they said that the value of institute is being fastly recognizing in the near future because other foreign capable professionals (Fellow ACCAs & Associate CIMAs) increasingly acquiring ICMA degree after sitting only in one exam. They said, we need neither want the word Chartered Accountant, which is recognized in the whole common wealth world for compliance accountants ie Tax & Corporate Laws, ISA, IFRS & company’s SOPs compliance. While we are Management Accountant ie Product & Project specific cost decision maker, Budgeting & Standard costing technicians.
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There is a better approach to deal this matter as working in audit firm since more than 5 years I observed that CA students & members are more competent in audit & accountancy (FA) however Cost audits, accounts & management are more better deal by ICMAP members.
Management Accountancy is a recognized profession in the world. One should not be scared of using Title “Chartered Management Accountant” being used by most of the accounting bodies in the world. Both the degrees/certification are different with different scope in the market ICAP being big brother should accept it with open heart and mind. Believe in competency of professionals instead of titles. Confrontations will get both professional bodies no where as it did happen in case of ACCA as well.
Afraid of competition ICAP won’t allow other accounting bodies have their legitimate right exercised.
Dear Sir
What is the current status of this matter?
To be very honest why ICAP and ICMAP are after Chartered title? I mean this title originates from ICAEW which has been granted royal charter by His or Her Majesty…. Similarly CIMA and ACCA both have been granted this royal charter by His/Her Majesty ….. Case should be launched to subtract this title from ICAP …. Moreover, ICAP, was established in 1960’s and has history of what??? 60 years???? 8,000+- members???? CIMA and ACCA both have century long histories being established in 1800s…. both separately hold 300,000+ members world wide… no body from europe or elsewhere will pursue ICAP but people are pursuing CIMA and ACCA from all over the world…