The Scottish and Irish accounting institutes have decided that the proposed global business qualification being developed by international accountancy bodies is a non-starter and have pulled out of the task force developing the scheme.
This is the designation code-named "XYZ Designation" by the American Institute of CPAs, and previously referred to as "Cognitor."
The Scottish ICAS stated: "The institute has concluded that there is insufficient market demand for an all-embracing qualification of the sort proposed; and that the business plan is unviable."
Ireland's chartered body said that it had "significant concerns about the viability of the model outlined in the business plan".
The dual withdrawal will be a serious blow to the scheme, which came about in April when eight leading professional bodies, including the AICPA, gathered to discuss the creation of a truly global qualification.
On September 11, the bodies gathered in New York to draw up the business plan. The launch of a global institute to award the new qualification was also envisaged.
Now the Scots have decided to push their own chartered accountant qualification as a global award.
ICAS president Grenville Johnston said: "The Scots CA qualification is already an international passport to business success. It offers a unique combination of business advisory skills. We shall continue to adapt it to meet the needs of the marketplace and work with our international partners to build and enhance the global reputation and currency of the Chartered Accountant.
"Education and professional qualifications are a fast moving part of our competitive world. We have concluded that the proposed Cognitor initiative is not the way forward for our profession."
The Irish institute has said it backs the principle of a global qualification, and will work with other institutes internationally in developing a "portable" qualification.