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Why is ACCA Not Recognized in The USA?

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21, Apr 2022
Hey there! Welcome back again. Have you ever wondered why is the ACCA course not recognized in the USA, but US CPA is? Let us quickly try to understand why is this so? If you are an accountant and if you are considering pursuing the ACCA course or the US CPA course, then this blog is a must for you.

Before we address the elephant in the room, let us first understand the structure of both these courses. Did you know that each state has slightly different requirements for writing CPA examinations and acquiring the license? Additionally, two very important bodies are included for this assistance, popularly known as the AICPA (American Institute of Certified Public Accountants) and NASBA (National Association of State Boards of Accountancy). However, each state has the right to have its very own benchmarks, and it is mainly because of this reason that many of the international candidates find the application process to be very complicated.

ACCA, on the other hand, is based in the UK and is the only professional body behind planning and plotting all the strategies. It operates as a single entity and has a much simpler application process when compared to the US CPA course. This ACCA (Association of Chartered Certified Accountants) credential acts as a global brand for all accounting and finance professionals, and in fact, it is also highly recommended by all the commonwealth countries.

Coming to the most frequently asked question, why is ACCA not recognized in the USA?

  1. This is significant because having an ACCA credential in the US would not allow candidates to practice public accounting in the US. One must acquire the CPA license to do so, which is issued at the state level. With that being said, there are a few multinational accounting firms and corporations in the US where ACCA professionals could contribute.
  2. Another reason is that ACCA is not widely recognized in the US, and hence ACCA professionals would not be able to add much value.
  3. This indeed narrows down the job opportunities as the ACCA candidates are more aware of the International Financial Reporting Standards, also known as the IFRS, and may have very little or no knowledge about the US GAAP (Generally Accepted Accounting Principles), and US Federal Taxation.

To conclude, ACCA and CPA are both very well recognized. One must decide between both these courses after creating a proper study plan that would depend on various factors like plans, career interest, country preference, and many more.

 

Here is a list of countries where ACCA qualified professionals are highly preferred.

  1. United Kingdom: the UK is considered a major hub when it comes to the economy, financial growth, and development. The UK has always been the one that gives tough competition in terms of banking independence and financial policies. There are immense job opportunities available in the UK, and one must pursue the ACCA course if one wishes to settle for a job abroad.
  2. Germany: Germany is majorly known as a powerhouse of Europe as it has plenty of industries and manufacturing units. The capital of Germany itself offers excellent business opportunities to all accounting and finance professionals. The education sector in Germany has particularly witnessed immense development, which has, in turn, paved the way for many of the finance-related organizations to prosper.
  3. Singapore: Singapore has always been an evolutionary reform and has plenty of establishments, which has left many countries astonished, be it in terms of reforms or financial developments. Singapore is one of the few countries which accepts ex-pats from many countries, and because of this, many educational institutions offer professional ACCA courses. ACCA in Singapore has been considered as the most sought career after completing the educational degree.
  4. Canada: Canada is one such country that has perfectly planned strategies for economic and financial developments. Canada has immense opportunities for all the accounting and finance professionals as they have been focusing a lot on their economy and sustainability. Quebec and Toronto are the two major cities that have a lot of industrial establishments and have the best employability features to offer.
  5. Malaysia: When it comes to the economy, Malaysia has always been very independent as they are striving to become a superpower. As a result, a lot of the financial establishments have signed MOUs with various other countries. As a country, Malaysia has been leading in the tourism sector, heavy equipment, etc.

To summarize, ACCA is considered as the most forward-thinking professional accountancy body that provides placement opportunities to its students too.

The second most frequently asked question that we get is, how much time will it take to complete the ACCA course after completing B.com? ACCA course duration is generally about three years on average.

ACCA course duration after completing B.com would be a total of two years as candidates would be awarded four papers exemption (F1-F4). It would take a total of one year to complete the Skills level and an additional one year to complete the Professional level.

Can ACCA be pursued after completing 12th? Let us find out:

The answer is a yes. ACCA is one such course that can also be pursued after completing std 12th. The only difference would be that the students will have to start from the foundation level, wherein the topics covered would be the same as in the knowledge level. So, the ACCA course in India eligibility is from std 12th.

If you want to know more about what is ACCA course in India? Feel free to reach our counsellors, who would be more than happy to assist you. All the best and happy learning.

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