Two of Ireland’s main professional accountancy bodies, Chartered Accountants Ireland (CAI) and Chartered Accountants Ireland (formerly the Institute of Chartered Accountants of Ireland), are scheduled to vote on a proposed merger next month.
The two organizations, which have a combined membership of more than 37,000 people, propose to establish a single institute under the name of Chartered Accountants Ireland, forming the largest professional body on the island of Ireland.
CAI currently has nearly 33,000 members and 6,000 students, while CPA Ireland has approximately 5,000 professional and student members.
This is not the first time the two institutions have filed a motion to merge, with previous proposals killed in 2001 and again in 2004 before reaching a vote.
Other accounting bodies operating in Ireland include the Association of Chartered Certified Accountants (ACCA), which has nearly 13,000 members, and the Chartered Institute of Management Accountants (CIMA), which has approximately 4,500 members, both of which are UK-controlled. I am.
Mark Gargan, president of the Institute of Chartered Accountants of Ireland, said the two organizations had been working together to address the shortage of accountants, but that it had become clear that there were “increasing similarities” between the two organizations, leading to a merger vote. He said he had come to the conclusion that he would do so.
“It seeks to support the profession in Ireland and simplify accreditation… Having one Irish body on the island of Ireland is a big deal when trying to encourage people to enter the profession. It makes a difference,” he said.
The merger will create a single accounting qualification with dual designation, regulated by the Irish Audit and Accounts Authority (IAASA).
Is it time to start building homes in Dublin’s main parks?
Mr Gargan added that, as other jurisdictions have seen regulators forcing the merger of multiple accounting bodies, in Ireland it “could be in full swing at a later stage”. .
According to the 2022 report, CAI had an average of 167 staff and CAP Ireland had an average of 32 staff. Gargan confirmed that “all roles should be respected” if the merger goes ahead.
CAI President Sinead Donovan said the proposal was based on a “strong financial case” and the “synergies” that could be created by the two institutions integrating their respective regulatory processes and pooling other resources and skill sets. ”.
“As the only two Irish-based accounting bodies, coming together as a newly strengthened Chartered Accountants Ireland will strengthen our voice,” she added.
CAI reported net assets of €38.6 million and operating cash balances of €17.1 million at the end of 2022, while CPA Ireland had net assets of €6.3 million and cash and cash equivalents of €1.1 million. If the proposal is approved by members, all of the assets of both institutions will be combined under the name of Chartered Accountants Ireland.
CAI and CPA Ireland will hold their next general meeting on Wednesday, February 21st, to ask members to approve the merger in principle. If both organizations pass the initial vote and subsequent clearance resolution and receive regulatory approval, they will apply to the High Court for approval of the merger.