Two of Ireland’s main professional accounting bodies, Chartered Accountants Ireland (CAI) and CPA Ireland (formerly the Institute of Certified Public Accountants in Ireland), will hold a vote next month on a proposed amalgamation.
With a combined membership of more than 37,000, the two organisations propose to establish a single institute under the Chartered Accountants Ireland name, forming the largest professional body on the island of Ireland.
CAI currently represents close to 33,000 members and 6,000 students, while CPA Ireland has a membership of almost 5,000 professionals and students.
It is not the first time that the bodies have tabled a motion to amalgamate, with previous proposals in 2001 and again in 2004 called off before they could reach the ballot.
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Other accountancy bodies operating in Ireland include the Association of Chartered Certified Accountants (ACCA) which has close to 13,000 members, and the Chartered Institute of Management Accountants (CIMA), which has almost 4,500 members, both of which are governed from the UK.
Mark Gargan, president of CPA Ireland, said the two organisations came together to collaborate on addressing a shortage in accountants, and when they identified “more and more similarities” between the two bodies, came to the conclusion of having an amalgamation vote.
“It’s about supporting the profession in Ireland, and trying to simplify accreditation... having one Irish body on the island of Ireland makes a big difference when we’re trying to encourage people into the profession,” he said.
The amalgamation would create a single accounting qualification with dual designation, regulated by the Irish Auditing and Accounting Supervisory Authority (IAASA).
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Mr Gargan added that as other jurisdictions have seen oversight bodies compel the amalgamation of multiple accounting organisations, it is something that “might come down the track at a later stage” in Ireland.
According to 2022 accounts, CAI had an average of 167 staff, while CPA Ireland employed an average of 32. Mr Gargan confirmed that “all roles should be honoured” if the amalgamation goes ahead.
Sinéad Donovan, president of CAI, said the proposal is based on a “strong financial case” and the “synergies” that could be created if the two bodies were to combine their regulatory processes, as well as through pooling other resources and skill sets.
“As the only two Irish-based accountancy bodies, coming together as a newly enhanced Chartered Accountants Ireland will strengthen our voice,” she added.
CAI reported net assets of €38.6 million by the end of 2022, and operating cash balances of €17.1 million, while CPA Ireland held net assets of €6.3 million, and cash and cash equivalents of €1.1 million. If the proposal is approved by members, all assets from the two bodies will be amalgamated under the Chartered Accountants Ireland name.
CAI and CPA Ireland will hold general meetings on Wednesday, February 21st next, where members will be asked to approve the amalgamation in principle. If both organisations pass the initial vote and subsequent enabling resolutions, and obtain regulator approval, an application will be made to the High Court to sanction the amalgamation.
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