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In this Feb 2006 issue of On Target :
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ICMA-IMA Merger Update
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What's On
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Bookshelf
MERGER NEGOTIATIONS SUMMARY OF OUTCOMES TO DATE
Fruitful negotiations were held at the IMA headquarters in
New Jersey during the period January 30 to February 1, 2006.
Representing IMA were Paul Sharman (CEO), Carl Smith (Chair),
Bill Brower (Chair Elect), Priscilla Payne (Education) and Jim
Gurowka (International); and representing ICMA were Leon Duval
(President) and Janek Ratnatunga (Education).
The visit by ICMA representatives and the ensuing
discussions turned out to be extremely vital because without
the face to face sessions (both formal and informal) no
potential for closing the process would have existed. After
three days of very intensive negotiation, a signed MOU emerged
that was mainly positive towards a merger, but contained two
potential ‘deal-breakers’. The process from here is that
ICMA will refer the draft agreement that emerged from the
discussions to its Executive Board and the IMA will refer the
same to their top decision making body called the Board of
Regents.
The summary of the Draft Agreement in terms of ICMA
stakeholder interests are as follows :
Members
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The ICMA CMA’s need to be recognised as having a
legitimate and prestigious professional qualification and
accordingly be afforded full CMA status by the IMA. This has
never been granted to anyone who has not been directly
examined by the IMA in their history. Therefore the AMAs and
GMAs currently in the pipeline must complete their CMA program
within 12 months from the merger date.
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In addition, the IMA Board of Regents must agree to recognise
ICMA members who have been awarded the CMA without
examination. This applies to our Foundation members and those
CMA’s accepted under our 10 year rule. This could be a
potential ‘deal-breaker’ as the IMA has never recognised
any person who did not pass examinations as a CMA (including
Charles Horngren, who had to sit for and pass the CMA exams).
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There will be no further intake of AMAs, GMAs and CMAs under
the 10 year rule after merger date.
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IMA will handle all membership administration matters which
will include the distribution of the journal, sending of
annual fee statements and collection of cash, and the
maintenance of the members’ data bases.
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All CMA members will be required to undertake 30 hours of CPD
per annum, as is currently the requirement for IMA’s own
CMAs.
Educational Programs
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All future graduates (accounting and non-accounting) will
be required to do the four stage (four papers) IMA program for
certification as CMAs.
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These members will be required, however, to have only two
years practical experience (compared with the 5 years
currently required by ICMA).
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However, ICMA Australia believe that if its existing two part
post-graduate CMA program is abandoned and prospective CMAs
are required to take IMA’s four undergraduate level courses
as the education prerequisite for membership, the membership
pipeline from the other accounting bodies (e.g. CPA, CA &
CIMA) will disappear. The ICMA believes that this will give
rise to serious questions on the membership growth potential
of IMA in overseas market, especially in Australasia; and
therefore the long term viability of the IMA Regional Council
after the merger. Also the articulation opportunities towards
an MBA will have been lost.
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As such the ICMA has recommended that its two module CMA
program is continued as a separate pipeline for qualified
accountants. The IMA however believes that this topic should
be dealt with at a later date as it has implications with
regard to cross accreditation issues between professional
bodies throughout the region as well as in the USA. It
instead, sees the role of the ICMA 2-subject program as CPD,
and to be made available to all USA qualified CMAs as well.
This difference of views is the second potential ‘deal-breaker’.
Course Providers
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Assuming the two ‘deal-breakers’ are resolved, the ICMA
Recognised Provider Institutions (RPIs) would continue to
offer the two existing CMA program subjects as either a route
for existing qualified accountants, or as CPD.
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All RPIs will be given the approval to market and deliver the
four part IMA program.
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The existing CAT, Advanced Diploma and Stage 3 of the GMA
program will be continued; however Stage 4 will become the IMA
program of 4 papers.
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The RPIs will also have further opportunities of providing the
30 hour CPD programs which may include parts of the CMA
program.
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As there are other providers in most countries appointed by
IMA, the marketing of these programs will not be exclusive.
General
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The merged entity would be a Regional Council of the IMA
domiciled in Australia and active in the Asia Pacific region.
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The assets and liabilities of ICMA will be transferred to IMA.
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The ICMA Executive Members to be bound by a 10 year non
competitive clause.
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Elected head of the Australasian Regional Council will have a
seat on IMA Board of Directors. Note the Board of Regents is
an invited membership and we have suggested that a
representative from Australia be invited to join.
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Existing ICMA structure will cease to be a CMA certification
granting organisation although it will still be involved in
the granting of CAT, Advanced Diploma and GMA awards.
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The proposed merger date is now June 30, 2006, as this is the
financial year date for both institutions.
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