RESTRICTED
WORLD TRADE S/WPPS/W/7/Add.12
9August 1996
ORGANIZATION(96-3167)
Original: English Working Party onProfessional Services
COMMUNICATION FROM BARBADOS
Response tothequestionnaire ontheaccountancy sector
Thefollowing communication iscirculated attherequest ofBarbados.
_______________
I. GENERAL
1. What aretheprofessional titlesofaccountants inyourcountry? Arethese professional titles
protected? Please specify how.
Theprofessional titleofaccountants inBarbados is"Chartered Accountant" which isprotected
bytheInstitute ofChartered Accountants ofBarbados (Incorporation) Act,1974.
Thereareotherprofessionaltitlesofvariousprofessionaloverseasbodies(e.g.AICPA,ICAEW,
CICA, ICAS, ICAI, CGA, CMA) whose holders maynotnecessarily bemembers ofthe
Barbados Institute (ICAB). These titles arenotprotected.
2. Howistheaccountancy sector regulated inyourcountry: bylaw,professional self-regulation,
acombination ofboth?
Theaccounting profession isself-regulating inBarbados.
3. Arethere anyprovisions toprotect company names, whether national orforeign, inyour
country?
Yes. Company names areprotected bytheCompanies Act,1982.
4. What aretheprofessional bodies inyourcountry? Aretheyrecognised bylawasaregulatory
ordisciplinary bodyfortheaccountancy profession inyourcountry, orarethese functions
fulfilled byother institutions (please specify)?
TheInstitute ofChartered Accountants ofBarbados (ICAB). Itisrecognized inlawasa
regulatory anddisciplinary body.
5. Howmany members dothese professional bodies have? What istheestimated proportion
ofthose:
Ourmembership at31December 1995 wasasfollows:
329-comprised of234males and95females.S/WPPS/W/7/Add.12
Page2
Theindustry profile ofmembers isasfollows:
Industry 149 45.3%
Public practice 124 37.7%
Public sector 25 7.6%
Other 31 9.4%
6. What isthescope ofactivities regularly practised byaccountants inyourcountry?
Activities regularly practised byaccountants:
(a) statutory audit
(b) taxadvice
(c) consulting
(d) audit ofcontributions inkind(i.e.not-for-profit entities)
(e) public sector audit (viz,quasi-government entities)
(f) accounting
(g) insolvency practice
7. Which ofthese activities areregulated inyourcountry?
Activities regulated are6(a),(d)and(e).
8. Which ofthese activities arereserved bylawtoaccountants, shared byaccountants withother
professions (please specify), orevenforbidden toaccountants inyourcountry, e.g.byfull
prohibition orbynotallowing cumulation ofcertain activities which areconsidered
incompatible ormutually exclusive?
Activities reserved bylawtoaccountants areasnoted in7.above.
II. QUALIFICATION REQUIREMENTS
9. What arethequalification requirements forthese activities inyour country interms of
university/higher education degree, practice andprofessional exam? Specify thenumber
ofyears required foreachelement, andthedifferences according totheactivities (audit,
insolvency, tax,etc.)covered bythequalification.
Amember ofthelocalinstitute isrequired tohaveapractising certificate inorder toperform
theattest function. Apractising certificate isissued toamember whohasobtained atleast
three years'approved practical experience under thesupervision ofoneormore members of
ICAB. There arenoqualification requirements forperforming activities 6(b),(c),(f)and(g).
10. Arethere anypre-conditions tomeet tostarttheprofessional education: minimum age,
particular diploma ortitle,prior education, registration withaprofessional body, payment
ofafee,other (please specify)?
Aperson applying formembership ofICAB musthavepassed theexaminations ofarecognized
professional body andmust satisfy Council thathe/she hashadnotlessthanfive(5)years'
approved accountancy experience andsatisfies Council astohis/her general character and
suitability.S/WPPS/W/7/Add.12
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11. What arethesubjects tobecovered bytheeducation: accounting, audit, tax,general law,
economics, ethics, information technology, other (please specify)?
Notapplicable since ICAB isnotanexamination setting body.
III. TECHNICAL STANDARDS AND ETHICS
12. Inrelation towhich activities donational standards exist(audit, accounting, insolvency,
other)? Please specify theirmain policy objectives.
National standards existforaudit andaccounting. Themain policy objectives are:
(i) topublish inthepublic interest accounting standards tobeobserved inthepresentation
offinancial statements topromote theiracceptance andobservance inBarbados.
(ii) toimprove thedegree ofuniformity ofauditing practices inBarbados byissuing
pronouncements onavariety ofaudit andattest functions, andtoseektopromote,
with thesupport ofthebusiness community, thevoluntary acceptance ofsuch
pronouncements.
13. Which bodyorinstitution develops thesestandards andmonitors theirimplementation? What
aretheconsequences ofabreach ofthestandards (fortheprofessional, forclients, etc.)?
(i) International Accounting Standards Committee (ISAC);
(ii) International Federation ofAccountants (IFAC).
Abreach ofthestandards cangiverisetodisciplinary action being taken against theperson(s)
inbreach.
14. Aretheinternational standards developed byIFAC (International Education Standards and
Guidelines, International Standards onAuditing) andIASC (International Accounting
Standards) recognised orusedinyourcountry? Ifyes,please explain how. Ifno,please
explain why.
AllInternational Accounting Standards issued byIASC andInternational Standards onAuditing
issued byIFAC havebeenadopted inBarbados.
15. Inrelation towhich activities does aparticular ethical code exist (audit, accounting,
insolvency, other)? Please specify itsmain policy objectives.
Anethical codeexists foraudit, accounting, management consultancy, company registrar and
dataprocessing services.
Themain policy objectives are:
(i) tospecify thetypeofentity through which theservice canbeprovided;
(ii) toregulate theconduct ofthemember providing theservice re.advertising, soliciting;
(iii) toestablish procedures fortheacceptance ofanassignment from anaudit client of
another member offirm.S/WPPS/W/7/Add.12
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16. Which body orinstitution develops thiscodeandmonitors itsimplementation? What are
theconsequences incaseofbreach oftheethical codebyaprofessional orafirm?
Thecodehasbeendeveloped bytheInstitute ofChartered Accountants ofBarbados ("ICAB").
Disciplinary action canbetaken bytheCouncil ofICAB ifthere isabreach ofthecode.
17. Arethere restrictions onmarketing, solicitation, advertising?
Yes.
18. Arethere restrictions onfee-setting (minimum/maximum levels imposed, indicative scale,
etc.)?
Feesshouldnormallybechargedonthebasisoftimespentonthework,calculatedatappropriate
hourly ratesforpartners, principals andother staff.
IV. LICENSING REQUIREMENTS AND PROCEDURES
19. Apart fromthequalification requirements, whatarethelicensing requirements forindividuals
inyourcountry?
(a) Practising members ofICAB arerequired tohaveapractising certificate.
(b) Practising members whoarepartners ofafirmorsolepractitioners arerequired to
payannual feestoGovernment (Ministry ofFinance).
(c) Practising members arerequired tohaveprofessional indemnity cover.
(d) Thetaking ofanoathisnotrequired.
(e) Members withcriminal records could faceexclusion from membership ofICAB.
(f) There isnorequirement onaminimum ageformembership.
20. Arethere anyconditions imposed tobeeligible formembership oftherelevant professional
body(ies)? Please specify.
Conditions imposed tobeeligible formembership ofICAB arealready setoutin10.above.
21. Arethere specific licensing requirements forprofessional firms?
There arenospecific licensing requirements forprofessional firms.
22. Cananapplication forlicensing befiledatanytimeoftheyearorarethere specific dates
torespect? Howlongdoesittaketocomplete thewhole licensing procedure? Please specify
incaseofdifferences between individuals andfirms.
Anapplication from anindividual forapractising certificate canbefiledatanytimeofthe
year. Theapplication issubmitted toICAB anditsevaluation isdelegated totheMembership
Committee. Council meets monthly toconsider anyrecommendations made bytheMembership
Committee.S/WPPS/W/7/Add.12
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23. Arethere differences interms oflicensing requirements and/or procedures, according to
theactivities covered bythelicence (audit, insolvency, etc.)? Please specify. What kind
ofdocumentation isnecessary/accepted? Aredocuments issued inother countries acceptable?
Please specify.
Practising certificates areonlynecessary toperform theaudit andattest function. Practising
certificates issued byoverseas recognized professional bodies would beverystrong evidence
ofaperson 'sentitlement toapractising certificate ifanapplication ismade bythatperson
forapractising certificate from ICAB.
24. What happens when thelicensing conditions arenolonger respected bytheindividual or
thefirm?
Apractising certificate thatiswithdrawn byICAB following disciplinary action willrender
themember ineligible topractice. Failure torenew thepractising certificate would alsohave
similar consequences.
V. RECOGNITION OFQUALIFICATIONS
25. Arethereanypossibilitiesfortakingaccountofqualificationsacquiredbyforeignprofessionals
inanother country? Arethere bilateral agreements withother countries inthisrespect?
Qualificationsofoverseasrecognizedprofessionalaccountingbodiesareacceptedandrecognized
inBarbados. There arenobilateral (reciprocal) agreements withothercountries inthisrespect.
26. Arethere anyautomatic recognition ormutual recognition agreements between your
professional bodies andtheircounterparts inother countries? Ifso,please specify themain
characteristics ofsuchagreements; ifnot,please explain why.
There arenoautomatic recognition ormutual recognition agreements between ourprofessional
body andtheircounterparts inother countries.
27. Where possibilities oftaking account offoreign qualifications exist, isafulllocalexamination
oralocaltraining exceeding 12months required? Please specify. Isalocallicence always
necessary topractice aregulated accountancy activity? Please specify when thisisnotthe
case.
There arenolocalexaminations orlocaltraining required oncetherequirements of10.above
aresatisfied.
Alocalpractising certificate isrequired toperform theaudit andattest function.
28. Whataretheaccreditation/licensingrequirementsimposedonforeignprofessionalsauthorised
topractice intheirhome country? Maycertain (regulated) activities becarried outonthe
basis ofaforeign licence?
Foreign professionals authorized topractise intheirhome country arerequired toapply for
apractising certificate from ICAB inorder toengage inpublic practice inBarbados.S/WPPS/W/7/Add.12
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VI. REGULATIONS GOVERNING THE ESTABLISHMENT OFACOMMERCIAL
PRESENCE
29. Arethere anyrestrictions ontheform under which onecanestablish (partnership,
incorporation, other)? Please specify.
Theaudit andattest function must becarried outthrough apartnership. Other services can
beprovided through limited liability companies.
30. Arethere restrictions onforeign direct investment andownership, including restrictions
applying tonotlocally qualified individuals orfirms? Please specify.
Firms andindividuals investing inBarbados needtobeaware ofandabide bytheregulations
oftheCentral Bank ofBarbados withrespect totherepatriation ofprofits.
Anon-resident individual isrequired tobeamember ofICAB inorder tobecome apartner
inalocalfirm.
31. Isthere arequirement ofaminimum number orpercentage oflocal directors, managers
orstaff(please specify)?
No.
32. Arethererestrictionsontheabilityoflocallyestablishedfirmstodevelopinternationalrelations
(membershipofaninternationalnetwork,associationwithforeignfirms,etc.)?Pleasespecify.
No.
33. Istheuseofinternational orforeign names restricted forfirms?
No.
VII. REGULATIONSGOVERNINGTHEENTRYANDTEMPORARYSTAYOFNATURAL
PERSONS FOR THE PURPOSE OFSUPPLYING ACCOUNTANCY SERVICES
34. Istheentry andstayofprofessionals subject tolabour market testsoranyother restrictions?
Please specify.
Yes. There should firstly beashortage oftheparticular skill. Inthisinstance awork permit
would beissued toanexpatriate tofilltheposition.
35. Isthere anyprocedure facilitating thetemporary entry andstayofprofessionals tosupply
accountancy services? Please explain.
Awork permit hastobeapplied forandisusually granted foraminimum oftwo(2)years,
renewable atitsexpiry provided asuitably qualified localcannot befound.
36. Arethere anyrestrictions onhiring oflocalprofessionals byforeign firms andprofessionals?
Please explain.
No.S/WPPS/W/7/Add.12
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VIII. NATIONALITY/RESIDENCY REQUIREMENTS
37. Isacondition ofnationality/citizenship imposed topractice certain activities, tostartan
education, toobtain alicence, tobecome member ofaprofessional body, etc.? Please specify.
Anyperson whoisacitizen ofBarbados orisordinarily resident inBarbados atthetimehe/she
applies formembership intheInstitute canbeamember.
Topractice, theindividual mustbeamember ofICAB andmustbetheholder ofapractising
certificate.
38. Isacondition ofestablishment, prior residency orresidency imposed topractice certain
activities, toobtain alicence, tobecome member ofaprofessional body, etc.? Please specify
theconditions andthedefinition ofestablishment, residency, etc.when relevant. Isitpossible
tohaveaprofessional establishment inmore thanonecountry?
Itispossible tohaveaprofessional establishment inmore thanonecountry (e.g.theEnglish-
speaking Caribbean 'srulesandregulations arequite similar. Onewould needawork permit
towork andpractise indifferent islands).