As one of the prominent accounting
bodies worldwide, the Institute of Chartered Accountants of India (ICAI) has
achieved recognition for its
contribution in the fields of education, professional development, maintenance
of high accounting, auditing and ethical standards.
Starting with a handful of about 1700
members, today, the strength of Chartered Accountant fraternity has grown to
over 2.45 lakh members. On the education front, the ICAI began with mere 259
students and today more than 8.75 lakh active students are a part of ICAI. The
ICAI has 5 Regional offices and 153 branches all across the country. The ICAI overseas Chapters continue to spearhead ICAI work program in 27
important jurisdictions globally.
Companies Act
and Companies Law Committee Report
In view of difficulties in smooth
implementation of the Companies Act 2013, ICAI is regularly making
representations on the issues in the Companies Act 2013 related to the
profession. ICAI representations have inspired some of the amendments in the
Act such as in Reporting on Fraud by Auditors wherein enabling provisions have
been prescribed for thresholds for
reporting by auditor to the Central Government.
The Govt. of India constituted The
Companies Law Committee (CLC) in June 2015 for making recommendations on the
issues arising out of implementation of the Companies Act 2013.
·
The Committee submitted its Report to
the Government on 1st February 2016.
·
ICAI had also submitted its suggestions
to the Committee.
·
There are several positive developments
particularly on Accounts, Audit & Auditors.
ICAI
Acts on SEBI Request over Ind AS Implementation Issues
In response to the Securities Exchange
Board of India (SEBI) request to provide suggestions on issues arising out of
Ind AS implementation, ICAI has sent the draft of the format for quarterly
financial results as prescribed under Clause 41 of Listing Agreement to SEBI.
ICAI has also made recommendations to SEBI regarding modifications required in
the SEBI’s Issue of Capital and Disclosure Requirements (ICDR) related to
financial statements as a result of Ind AS implementation.
New
Window of Opportunity for CAs
Opening yet another window of
professional opportunity for CAs, the Delhi Assembly has recently passed Delhi
School (Verification of Accounts and Refund of Excess Fee) Bill, 2015 besides
two other related bills to bring a major reform in education system by amending
the 42-year-old Delhi School Education Act, 1973. The Bill will regulate and
refund excess fees in private institutions and is aimed at ensuring that
private schools show greater accountability in fees accepted and money spent.
The State Government will now form a committee which will get accounts of
private schools audited through Chartered Accountants. This Bill will achieve
its objectives for the good of Delhi education system.
Curbing
the Black Money Menace: New Certificate Course
To curb the generation of black money in various sectors, Central
Board of Direct Taxes (CBDT), Ministry of Finance, Government of India decided to go all out and conduct
workshops which were organized by ICAI to clarify doubts of the assesses
regarding scope, procedures etc. of the new legislation namely Black Money
(Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
As part of its efforts to help
Government initiatives to curb the generation of the black money and closely
work to achieve the objective of Prevention of Money Laundering, ICAI has
launched a 6 days Certificate Course on Anti Money Laundering Laws (Anti- Money
Laundering Specialist). The objective of the course is to equip CA members in
this field with the necessary expertise. Experts from the Enforcement
Directorate, Financial Intelligence Unit of India and other regulatory and
investigation organizations have been invited to address the members during the
Course.
Accounting
Reforms in Indian Railways
ICAI has been
extending its technical and infrastructural support towards the accounting
reforms of various Government offices i.e. moving from cash to accrual system
of accounting, after assessing the tremendous positive impact on national
financial reporting. The Indian Railway approached ICAI to undertake the pilot study project
on “Study
of existing Budgeting and Costing System and proposal for Outcome Budgeting and
Integrated Cost Accounting Architecture in the line of Indian Budget
Announcement 2015-16”. ICAI has undertaken the job & a Concept Paper
on Outcome Budgeting has been submitted to the Railway Authorities. The Indian Railway has hosted the Concept Paper on their
website for comments.
This is a step
forward from Accrual system of accounting. It is a Pilot Project that aims at
analyzing the costs & arriving at concrete & scientific data. This
would help in better analysis & taking informed decisions.
Pilot
Study Project with Coal India Limited, Kolkata (CIL) of Ministry of Power
ICAI has recently undertaken the Pilot Study Project
of “Review of the Capital Expenditure (Capex) Procurement Process and Policy
Compliances Framework” on pro-bono
basis of Coal India Limited, Kolkata (CIL) of Ministry of Power. On the basis
of the information provided, the road map for the assignment has been chalked
out. This Project will study the compliance
framework, Procurement process & policy and will help in identifying the
shortcomings & suggesting the remedial measures.
Pilot Study Project for Power Finance Corporation Ltd.
ICAI has recently undertaken the Pilot Study Project on
"Strengthening Compliance Framework" for Power Finance Corporation
Ltd. and its three subsidiaries.
Municipal Corporation of Greater Mumbai (MCGM)
ICAI
has received the letter of Assignment and Commencement for the Project on
“Review and Strengthening of Accrual Accounting System and Designing of a
Sustainable Audit Management” for MCGM.
Employees Provident Fund Organisation (EPFO)
ICAI has also taken up the project on “Migration Strategy
for Implementation of Accrual Accounting System in EPFO”. The draft report has
been submitted.
Indian
Accounting Standards converged with IFRS
ICAI
has played a very important role in taking Indian financial reporting system to
newer heights and achieving international benchmarks by taking necessary
initiatives from time to time. Continuing with this endeavour, convergence with
IFRS had been decided.
· Subsequent
to the Budget statement of the Hon’ble Finance Minister to implement the
IFRS-converged Ind AS on voluntary basis from 1st April, 2015
and on mandatory basis from 1st April, 2016 in a phased manner,
the ICAI was able to update the complete set of Ind AS in a short span of time.
The ICAI had completed the process of formulating the IFRS-converged Ind AS in
a time bound manner. The due process was rigorously followed and after
extensive discussion and deliberations, these standards were finalized.
· The
ICAI submitted these IFRS-converged Ind AS to NACAS. After recommendation
of the NACAS, these Ind AS have been notified by the MCA as the Companies
(Indian Accounting Standards Rules), 2015 vide Notification dated February 16,
2015. With the hosting of all these standards on the website of the MCA, the
entire process has been completed in record time of less than 6 months.
This
technical contribution of ICAI is a testimony of what the profession can
collectively contribute towards the growth and progress of the country.
The
Government had earlier also virtually accepted ICAI recommendations with regard
to the roadmap for implementation of Indian Accounting Standards (Ind AS) for
companies other than banking companies, insurance companies and NBFCs.
The
ICAI had recommended the revised roadmap to the MCA in August 2014. As per
the corporate roadmap, in the initial phase of Ind AS becoming mandatory from 1st April,
2016 about 1000 listed/unlisted companies are expected to implement the Ind
AS. This number is likely to increase next year as all remaining listed
companies and unlisted companies having networth of more than Rs. 250 crores
will get covered in the next year.
· On
January 18, 2016, the MCA released a Press Note for implementation of Ind AS by
Banks, Insurance Companies and NBFCs. As per the Press Note, Ind AS
implementation is mandatory from 1st April, 2018 for Banks
and Insurance Companies. For NBFCs, implementation shall be in two phases,
viz., from 1st April 2018 for NBFCs having net worth of Rs. 500
crore or more and 1st April 2019 for all remaining
listed NBFCs and unlisted NBFCs having net worth of Rs. 250 crore or
more. Accordingly, over the next few years more and more entities
will apply Ind AS with a view to bring their financial statements at the
international level.
To
be effective, the Ind AS have to be implemented in the same way as they are
implemented internationally. Since the Ind AS require generation of new
type of financial information which is to be reported in the Ind AS-compliant
financial statements, the systems of the companies need to be upgraded to
generate such information.
· With
a view to provide fast-track guidance to preparers, auditors and other
stakeholders in effectively implementing the Ind AS, the ICAI has recently constituted
Ind AS Transition Facilitation Group (ITFG). This Group would provide
clarification on transitional issues in application/ implementation of Ind AS
referred to it by various stakeholders. On Feb 11, 2016, the ITFG has issued
the first batch of clarifications in its ‘ITFG Clarification Bulletin 1’. Going
forward, the ITFG is expected to issue more Bulletins as and when it issues
clarifications.
Further,
not only the professionals involved in the preparation of financial statements
as per Ind AS need to have the necessary skill-sets to implement the Ind AS as
these require judgment and estimates to be made which were hitherto not
required, but auditors also need to upgrade their skills in this regard.
· The
ICAI, through its Certificate course on IFRS, has already trained approximately
6600 number of professionals. Going forward, the ICAI has geared up its
capacity building endeavours in a focused manner. In this direction, the ICAI
is conducting chain seminars throughout the country with a view to develop the
necessary skills and knowledge for smooth and effective implementation of the
Ind AS.
· The
ICAI is also working to bring out Educational Materials on all the Ind AS. The
ICAI has recently brought out Educational Materials on Ind AS 101, First-time
Adoption of Indian Accounting Standards and Ind AS 10, Events
After the Reporting Period. The ICAI is also working to revise
its earlier issued Educational Materials formulated on the basis Ind AS
notified in 2011 and the same are expected to be issued shortly. The ICAI
also plans to launch the Ind AS in the electronic form so that the
professionals and others concerned may use the contents of the Ind AS in a more
effective manner.
The
ICAI has accordingly geared itself on long-term basis to meet the challenges in
the implementation of IFRS.
Swachh Bharat Abhiyaan
Hon'ble Prime
Minister had nominated ICAI for the Swachh Bharat Abhiyaan. Under this banner, Swachh
Vidyalaya Abhiyaan had been
launched to provide separate toilets for boys and girls in all the Govt.
schools throughout the country. The construction of new toilets as well as
repairs of dysfunctional toilets has been undertaken by the Central Public
Sector Undertakings (CPSUs) governed by the Ministry of Power, Coal, New and
Renewable Energy (MoP) and will spend their CSR funds for construction/repair
of the said toilets in schools that are having in-adequate toilets.
It has been desired by MoP that the physical outcome of
such activities be suitably verified and the services of the Chartered
Accountants be availed for this purpose on a pro bono basis. In view of this,
ICAI had made an announcement to this effect to its members inviting them to
confirm their interest in supporting the aforesaid initiative.
e-Hearing
of ICAI Disciplinary Cases
As
part of ICAI’s continuous drive to uphold the credibility, integrity and image
of the accountancy profession in India, the regulatory mechanism of ICAI is
working assiduously. Disciplinary Directorate of ICAI has been taking
disciplinary action against its errant members as per the provisions of the
Chartered Accountants (Amendment) Act, 2006 and Rules framed there under.
The technology is aiding all spheres of
life. Overcoming the need for physical presence, e-benches have been set up by
some of the courts and tribunals where involved parties join and appear from
different cities using video conferencing. Following the example, ICAI has also
decided to initiate e-hearing for its disciplinary cases very soon. This
initiative would help in effective hearing and disposal of disciplinary cases
in the Institute across the country reducing the overall cost and time for all
concerned.
ICAI has a strong disciplinary
mechanism wherein proceedings are initiated and taken to their logical end
through a well-defined procedure which maintains the interests of natural
justice while ensuring that the guilty are never spared. While law takes its
own course, ICAI is committed to ensure justice in all disciplinary cases and
thereby upholding the values of Excellence, Independence and Integrity which
form the benchmarks of the profession.
Setting
up of ICAI Chapter at Auckland and RAK UAE
To establish the footprints and marks of
excellence of the Indian CAs across the globe through a strong network of
foreign chapters, which presently have more than 12,000 members in their fold,
ICAI has established 27 overseas chapters. These chapters prove to be immensely
useful for Indian CAs in the region and would network with the members of
Accounting Institutes.
ICAI would
soon be inaugurating another overseas chapter in RAK UAE.
ICAI-ICPAI Joint
Efforts and Professional Opportunities
ICAI
in partnership with the Institute of Certified Public Accountants in Ireland
(ICPAI) has launched a new Programme to enable the members to access career
opportunities across Ireland. ICAI regularly conducts different Placement
Programmes for the newly qualified and experienced Chartered Accountants. This
is another endeavour to provide the members an opportunity to work
abroad.
This programme would enable ICAI members to access career opportunities in
Ireland.
1163
members had registered for availing the benefits of this programme. ICAI also
endeavors to organise more such programmes in other countries as well. 738
members have been shortlisted in the first level. The quality of the members
has been highly appreciated by the prospective Irish employers.
Campus Placement Programme: Campus
Placement Programme provides an opportunity to the employers to interact
with newly qualified Chartered Accountants peruse their particulars and recruit
the suitable candidate in their organizations. The Placement programme is
organized twice in a year in the months of Feb – March & August –
September.
Campus
Placement Programme, February- March, 2016
ICAI is organizing Campus Placement
February- March 2016 at 22 centres across the country in two phases.
·
In first phase, campus interviews are being
conducted at 15 smaller centers namely Baroda, Coimbatore, Bhubaneswar,
Chandigarh, Kanpur, Thane, Durgapur, Ernakulam, Indore, Jaipur, Vasai,
Ahmedabad, Navi Mumbai, Pune and Nagpur during February 2016.
·
In second phase, campus interviews shall be
conducted at 6 bigger centers namely Bangalore, Hyderabad, Chennai, Kolkata,
Mumbai and New Delhi during March 2016.
Till date, 5961 candidates have registered for the
programme and 100 companies are participating in the programme.
Campus
Placement Programme, August-September, 2015 was organized at 19 centers
- The Highest
salary offered for Domestic posting was Rs. 21 lacs per annum
- Organizations
like Tata Consultancy Services Ltd., ITC Limited,
Barclays Shared Service Pvt. Ltd., Caterpillar India Pvt. Ltd., Coca Cola India
Inc., Wipro Limited, Bharat Petroleum Corporation Limited, Genpact
AIG, National Buildings Construction Corporation Ltd., Reliance Industries
Ltd., Tata Motors Ltd., HCL Infosystems Ltd., Aircel, Maruti Suzuki India
ltd., TVS Motor Co. Ltd., Mphasis an HP Co., Robert Bosch Engineering and
Business Solutions Ltd. and many more participated in the
Campus Placement Program.
Students Initiatives
The ICAI has always been pro-active in
designing education and training schemes so as to produce competent professional
Chartered Accountants. The ICAI is aware
of the demands of modern dynamic society
and therefore the CA course is regularly updated and revised so that the students should acquaint themselves with the
latest in the fields of accounting, auditing, finance, IT and should remain
ahead of times.
Revised Scheme for Education &
Training
Highlights
·
Nomenclature:
Foundation, Intermediate and Final.
·
Two entry routes.
Foundation and Direct.
Foundation entry
·
Registration after
appearing in Class XII. Appearance in Foundation examination after passing
Class XII examination.
·
Intermediate – Study
period is of 8 months.
·
Practical training of three years to be
started after passing either or both groups of Intermediate.
· Orientation course, GMCS I and ITT
merged into Four Weeks Integrated Course on Information Technology and Soft
Skills (ICITSS). This has to be completed before commencement of the practical
training.
· GMCS II and Advanced ITT merged into
Advanced Four Weeks Integrated Course on Information Technology and Soft Skills
(AICITSS).This is to be completed during the last two years of Practical
Training.
·
Final examination can be taken only
after completion of practical training and Advanced ICITSS.
Direct entry
· Allowed to Commerce
Graduates/Post-Graduates (with minimum 55% marks) or Other
Graduates/Post-Graduates (with minimum 60% marks) and Intermediate level passed
students of Institute of Company Secretaries of India and Institute of Cost
Accountants of India to enter directly to its Intermediate Course. They can
immediately commence their practical training after completing ICITSS. They may
appear in Intermediate Examination after Nine months of Practical Training.
· Candidates who have
passed Intermediate level examination of ICSI or ICWAI and enter the CA
Intermediate course directly shall be treated at par with Foundation passed
students and shall have to undergo the CA course in the manner akin to the
Foundation passed students.
Way Forward
o
The Institute is now in
the process of preparing syllabus for each subject. Once syllabi are prepared,
the New Study Material based on New Syllabi will be prepared.
o
The Transition Scheme
will be drafted for the existing students.
o
Government approved
Scheme will be notified in the Gazette of India for inviting comments for a
period of forty-five days.
o
The public comments so
received shall be considered by the Institute.
o
The modified Scheme (if
changed due to comments received) will again go to Ministry of Corporate
Affairs, Government of India for final approval.
o
The new Scheme along
with the Transition Scheme for the existing students shall be put in place.
· Recognition by Renowned University
and Institutes: The
Gautam Buddha University, Uttar Pradesh has recognized Chartered Accountancy
qualification for pursuing Doctorate of Philosophy (Ph.D.). Now, 106
institutions (99 Universities, 6 IIMs and IIT Madras) have so far recognized
Chartered Accountancy qualification for pursuing Ph.D programme.
·
Reading
Rooms: With
a view to provide a conducive atmosphere to the students, who are coming from
different sections of the society, the ICAI is encouraging branches to open
more and more additional reading rooms. As on date, 126 Reading
Rooms/Libraries are in operation across the country.
- Smart class rooms: Efforts are on to setup Smart Class rooms at
Regional Councils and Branches to enable the students to have state of the
art learning facilities.
- e-Learning
initiatives: In its
continuous endeavor to provide quality education to students, ICAI has
been actively leveraging technology to facilitate distance education for
the CA Course. The Board has made available e-Learning for all the levels
of CA Course on the Students Learning Management
System (LMS) (http://studentslms.icai.org/index2.htm). It is a Learning System to be pursued by
Students along with Practical/ Articled Training as it enables them to
learn anytime and anywhere.
Online Answer Books: As a green
initiative, students are now provided certified copies of their answer books in
soft copies. Through a secure login identity and password intimated to them,
they can visit the particular site and view their answer books at their
convenience.
·
Online Correction Post-Submission:
Even after submission of examination forms, students have another opportunity
to correct the particulars online, i.e. at http://icaiexam.icai.org,
including change of examination centre, group and medium, etc. This link called
Correction Window will enable them to communicate online with our Examination
Department for making corrections in the examination forms.
