Articleship Deed ICAN

  Wednesday, March 15, 2023 First Gen EMBF Ranger   , , ,   No comments

Articleship Deed or the Deed of Articleship of ICAN


When will you be filling up the Deed?

Once you have been selected and you too have finalized the firm, when both you and your prospective principal have agreed to employ you as an articled trainee, you will be filling the deed.


How Many Copies of the deed needs to be filled?

Three copies. As you can see in the deed itself that it mentions of it needing to be filled in triplets.




What to do after filling up and signing the deed?

After the deed has been signed off by both you and your principal, then you need to register the deed and also register in Chartered Accountancy Professional (CAP-III) level of ICAN within 1 month[1] of signing the deed. The registration process is completely online. You need to login into your CAP-II account of ICAN and then click the Upgrade button to enter into the further process.


Which legislation/ law contains such details about articleship deed?

It is contained in the Nepal Chartered Accountants Regulations, 2061 (Latest Amendment of 2077).


FUN FACT: The Articleship Training is called "पंजीकृत प्रशिक्षण" in Nepali.


What not to be confused with?

Don't be confused that this deed is not to be used for one year internships to be done by Professional Accountants (Chartered Accountants) qualified from foreign Professional Accounting Bodies. There is separate one year internship deed for that purpose. Similarly such interns are called "Chartered Interns" and not "Articled Trainee".


Way Ahead

You will be undergoing the three years articleship training and gaining first-hand experience in auditing, accounting, taxation, finance and allied fields. After 2 years of your articleship has finished you will be eligible to attend examinations for CAP-III. Thenafter, after passing both the groups and completing the 3 years of articleship, you will need to complete the GMCS training then you will be awarded with the degree of a Chartered Accountant. 

Industrial Training

Similarly, after 2 years of your articleship, you may choose for Industrial Training in a particular industry in order to gain practical experience. 

  • The training will be received under the guidance of a CA member of ICAN. 
  • The CA member must be working with the organization for more than 5 years.
  • You need to remember that industrial training must be approved in advance by the entity or such principal with whom you are willing to serve under industrial training. 
  • Any CA member can have a maximum of 2 Industrial Trainees at a time.
A list of organizations where you can serve as an Industrial Trainee under a member of ICAN is given below:-
  1. The Office of Auditor General,
  2. Fully or partially owned Government's undertaking,
  3. Entity or company where compliance of NFRS is applicable mandatorily,
  4. Any office or regulatory body under constitutional body, Nepal Government, Province Government, local government,
  5. Any other Institution or Organization as approved by the Council. 

MUST REMEMBER !!! >> That you cannot just go and start your industrial training in the above listed organizations willingly. There must be a CA member of ICAN working in that organization. There are many CAs who are not member of ICAN and there is no bar for them for employment, business and investments in Nepal except for staying in practice. You must confirm your proposed CA principal is a member of ICAN or not. The organization must also be willing to take you in as an Industrial Trainee. Remember that you must not be taken as a normal trainee as a BBA/ MBA trainee who are not treated well by the trainer organizations.


Way Ahead if you could not pass CAP-III

If you are not able to pass the CAP-III examinations, then still there is a safelanding within the Professional Accounting sector within Nepal and outside of Nepal. Let's list them:

  1. Inside Nepal: You can obtain the Accounting Technician (AT) License and provide professional accounting services regarding which a separate article will be posted soon. Yes, this means you can conduct audits. Currently the audit limit for the ATs is Rs. 20 Crores which is in between the audit limit for RA 'D' Class[2] and RA 'C' Class[3]. (As per the AT Bylaws, 2067)
  2. Outside Nepal: You can apply and become a member of the CPA Australia after having passed these 6 papers and completed the PER4 of the CPA Australia and must have a bachelor's degree recognized by CPA Australia: (As per the Membership Pathways Agreement [MPA] signed between ICAN and CPA Australia)
    1. Ethics & Governance,
    2. Strategic ManagementAccounting,
    3. Financial Reporting,
    4. Global Strategy & Leadership,
    5. Two (2) elective subjects in the CPA Program

You can take a view of the Articleship Deed format below:-

PDF cannot be displayed, please download it here.

Derived from the ICAN's official website https://en.ican.org.np/

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Notes & Glossary:
  • [1] Rule 8(2) of the Chartered Accountants Regulations, 2061 (Latest Amendment of 2077)
  • [2] The Audit Limit for RA 'D' Class is Rs. 5 Crores
  • [3] The Audit Limit for RA 'C' Class is Rs. 30 Crores
  • [4] PER : Professional Experience Requirement
  • All the date used in this article are in Bikram Sambat (B.S.), the national calendar used in Nepal which is about 56.7 years ahead of the Gregorian calendar system
  • GMCS : General Management & Communication Skills

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