Saturday 1 June 2019

ICAI Mega GST Conference


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 more than 3 lakh members. On the education front, the ICAI began with mere 259 students and today about 8 lakh active students are a part of ICAI. The ICAI has 5 Regional Councils and 164 branches all across the country. The ICAI Overseas Chapters continue to spearhead ICAI work program in 34important jurisdictions globally.

Migration of Services to New Digital Platform

ICAI is constantly evolving in tune with times and proactively leveraging the technology to better serve the stakeholders. Latest in the series of such initiatives is an ambitious project to automate and reengineer ICAI processes to make these user-friendly, which involve a creation of SSP (self-service portal), to make applications (Forms) and transactions (Services) fast and convenient. Migration to a new digital platform has already started and the digital transformation process will soon be completed. Few Student / Member Forms & Services have already been made available and others are being migrated in the due course.

A full-scale Student and Member/Firm services will be put to implementation soon.

One Million UDINs Generated

Unique Document Identification Number (UDIN) has been made mandatory in a phased manner, i.e. on certification done by practicing Chartered Accountants with effect from February 1, 2019, on GST and Tax Audit Reports with effect from April 1, 2019.
While UDIN has been made mandatory under 3rdand final phase for all Attest and Assurance functions from July 1, 2019, in the mid-2ndphase, the number of UDINs generated has crossed the one million mark.

Standards on Internal Audit (SIAs)-Codifying Best Pracitices

The Institute has initiated the process of revising Standards on Internal Audit (SIAs) and making them principle-based. These principle-based Standards will help the members in providing a framework for internal audit activities, establishing the basis for evaluation of internal audit performance and fostering improved organizational processes and operations.
  
ICAI had revised Definition of "Internal Audit", including an explanation which provides additional clarity on the key terms used in the revised definition. The Institute has also revised Preface to the Framework and Standards on Internal Audit, Framework Governing Internal Audit and Basic Principles of Internal Audit in March, 2018. The Institute has revised five more Standards on Internal Audit i.e. Managing Internal Audit Function, Conducting Overall Internal Audit Planning, Planning an Internal Audit Assignment, Internal Audit Evidence and Internal Audit Documentation in August, 2018.

Now, five more Standards on Internal Audit providing guidance on important areas are being issued by the ICAI i.e. Nature of Assurance, Objectives of Internal AuditUsing the Work of an Expert, Communication with ManagementReporting Results Standards on Internal Audit .

Release of Compendium of Ind AS (E-version) effective from April 1, 2019
ICAI released the Compendium of Ind AS (E-version) for standards effective April 1, 2019. During the previous year there have been certain amendments to Ind ASs which have all been incorporated in appropriate places and relevant standards in this updated version of compendium. ICAI has been at the forefront of ensuring high quality accounting standards in India. The Compendium of Ind AS will be highly useful to all stakeholders in particular preparers and auditors of financial statements. ICAI will also continue to engage in disseminating knowledge of these Standards and the changes through a series of initiatives including webcasts, workshops, training programmes and certificate courses.
Capacity Building Measures
“Help Desk” for Members in Industry
In its consistent pursuit of addressing the queries of Members in the Industry, ICAI has set up a Help Desk through its Committee for Members in Industry & Business. The Help Desk will help in quick disposal of all queries and concerns of the members in industry. The Members in industry can submit their queries pertaining to ICAI through any of the below mentioned channels.
·         Write an email to  helpdesk.cmib@icai.inor
·         Call at 8448512714 or
·         Log on to https://cmib. icai.org & fill the form available at Help Desk
The key features of the Help Desk are:
·         Queries can be submitted through Website/ Email/ Call
·         Unique tickets will be generated for each query & thereafter tickets will be assigned to concerned Department/Region/Committee for resolution
·         Merging of tickets of the same member /same subject from various channels
·         Voice messages and Calls can be received, recorded and converted into tickets/queries
·         Timely Alerts/ Notifications
·         Option to share articles/forms/letter etc. with the member while resolving their tickets.
·         Customized Report System
·         Well defined Escalation Points (after defined period or level) to address the queries
·         In case there is delay in replying to the query, tracking system to find thereason of delay.


Lateral Placement for experienced Chartered Accountants

The Institute is organizing Lateral Placement for experienced Chartered Accountants who are having considerable experience (5 years & above) and looking for job change. Lateral Placement is a platform specifically designed with an aim to provide placement opportunities to the Experienced Chartered Accountants. This initiative is an extended dimension to the existing initiative i.e. Campus Placement Programmes (organized twice a year), undertaken by ICAI to provide employment opportunities to the Newly Qualified Chartered Accountants. 

A Chartered Accountant having Membership as on May 31, 2014 or prior to that is eligible for lateral placement. The Interviews are scheduled at Chennai (June 25th), Kolkata (June 26th), Mumbai (June 27th) & New Delhi (June 28th).

The Complete details of the Lateral Placement is available at https://cmib.icai.org/ 

Successful Campus Placements
ICAI successfully conducted campus placement programme for Feb-March, 2019 at 17 centres, where 139 companies participated and offered 3802 jobs to members.Highest salary (i.e. cost to company) offered for domestic and international posting were 22.50 lakh and 36 lakh respectively. Many well-known companies from different sectors were amongst the top recruiters,which proves that the industry is upbeat about engaging the young Chartered Accountants.

For the first time, second round of placement was also organized from April 24-26, 2019 at 13 centres for left-out candidates to help them with job offers, where 46 organisations and their              58 interview teams participated. Around 600 candidates appeared for interview and 113 offers were made.


Promoting Foreign Language amongst members and students

ICAI always has focus on export of Chartered Accountancy services as more than 20,000 of its members are based overseas. Moreover, with new employment being generated in overseas, ICAI is providing beginners' level course for its members and students in language skills pertaining to French, German, Spanish through their Official language Institute in association with respective Embassies. ICAI is also looking for tie up in Arabic, Chinese and Japanese language courses. The same is being mandated by Ministry of Commerce and Industry in its Action Plan for Champion Sector. 
  
  • 8th Batch of Spanish course in association with Instituto Cervantes has been initiated w.e.f. May 4, 2019.  The course ends on July 14, 2019.
  • ICAI also tied up with Goethe InstitutMax Mueller Bhavan and organised the 1st batch of German language w.e.f January 12, 2019.  The course ends on June 9, 2019.
  • Foreign language course in French in association with Alliance Francaise started w.e.f. May 13, 2019 wherein 20 members and students have registered and the course will end on August 20, 2019.
·         One day session on Arabic Language was hosted by Overseas office of ICAI in Dubai Knowledge Park on May 14, 2019 in association with Eton Institute in Dubai which was successfully attended by 100 members in order to assess the demand of Arabic language in Dubai.
·         ICAI has also launched the Online Survey for assessing the demand for foreign language wherein members and students can express their interest by for the French, German, Spanish, Arabic, Chinese and Japanese languages till June 15, 2019.

ICAI’s Contribution in GST Recognised
ICAI has been recently felicitated in recognition of its contribution and support in the development of GST ecosystem by the GSTN on its foundation day i.e. April 5, 2019. This honour has come to ICAI in response to Institute’s various initiatives and dedication to the cause of GST. ICAI has been and will remain supportive to both Central and State Government(s) in their endeavours pertaining to the ambit of its professional expertise and excellence.
Recent Developments in GST
  • Handbook on GST Annual Return: GST annual return filing is mandatory for all entities having GST registration, irrespective of turnover during the financial year. With a view to provide support and help tax payers in filing their Annual Return for the first time, the Institute has brought out Handbook on GST Annual Return. An attempt has been made to guide about each and every information sought in the Annual Return.

  • 7th Edition of Background Material on GST: Seventh edition of the Background Material on GST has been published, which is in line with the changes brought about in the month of April, 2019. Containing clause-by-clause analysis of the GST laws, this explains with the help of flowcharts, diagrams, MCQs and FAQs.

  • GST Portal: Based on GSTN’s request for suggestions for improving the GST portal, ICAI submitted 38 suggestions to improve various forms/ interfaces available on the Portal including filing return, making payment and login.

  • Taxation in Infrastructure: GST Council had proposed to impose tax at the rate of 1% and 5% on affordable housing properties and for the residential properties outside affordable segment respectively. Now, favourably responding to ICAI’s eight suggestions in that regard, the GST Council decided that these new rates would be mandatory only for new projects that would start from April 1, 2019 and taxpayers have been given freedom to opt for the new scheme in the running project, if they so desire.

  • Updated e-Learning Modules on Customs and FTP: ICAI has come up with an updated series of e-Learning on Customs and foreign trade policy (FTP) comprising recorded video sessions, which cover almost all relevant topics in that regard.



Global Forays

ICAI has the multi fold objective of positioning brand Indian CA at the global level by establishing Qualification Recognition Arrangements with Accounting bodies.  With the approval of MoU with ICAEW, ICAI as on date has arrangements with the following Accountancy bodies:-
  • Certified Public Accountants of Australia (CPA Australia)
  • Institute of Certified Public Accountants in Ireland (CPA Ireland) 
  • CPA Canada
  • South Africa Institute of Chartered Accountants (SAICA)
  • The Institute of Chartered Accountants in England & Wales (ICAEW) – Approved by the Union Cabinet of India, pending for signing
  • Chartered Accountants - Australia and New Zealand (CA ANZ) - Pending for approval with the Union Cabinet of India
In addition to signing various Qualification Recognition Arrangements, ICAI has also signed Cooperation Arrangements with various countries to provide technical assistance to developing countries in the direction of institutionalization of Accountancy profession. Such arrangements has been signed with the Institute of Certified Public Accountants of  Kenya (ICPAK), National Board of Accountants & Auditors, Tanzania, ICA Nepal,  Accounting and Auditing Standards Board of Bhutan, College for Banking & Financial Studies, Oman and Bahrain Institute of Banking and Finance (BIBF). The technical MoUs with following institutions namely Higher Colleges of Technology - UAE, Saudi Organization for Certified Public Accountants (SOCPA) and CPA Afghanistan have been approved by the Union Government of India, and would be signed in due course.

SAFA Women Leadership Committee
In the year 2018, Women Leadership Committee was formed at SAFA with the objective to formulate and implement plans, policies and programmes for the development of women professional accountants of the SAARC region. ICAI was given the responsibility of chairing this newly-formed Committee in its first year. SAFA Board after reviewing the good performance of this Committee in last three months has decided to extend the term of Chair of the Women Leadership Committee for two more years i.e. till December 31, 2020.
Submission of Accrual-Based Financial Statements of Indian Railways for 2015-16 and 2016-17
ICAI Accounting Research Foundation (ARF) submitted the accrual-based financial statements of Indian Railways for the years 2015-16 and 2016-17 comprising the Statement of Financial Position and Performance, Cash-Flow Statement as on March 31, 2016 and March 31, 2017. The accrual-based financial statements as submitted by ICAI-ARF have been approved by the competent authority in Indian Railways.
Software for Allotment of Statutory Auditors at PSBs
This year, the automated application developed by ICAI for the selection of Bank Branch Auditors has been used by 7 public-sector banks i.e. Punjab National Bank, Central Bank of India, Bank of Baroda, Dena Bank, United Bank of India, Punjab & Sind Bank and Oriental Bank of Commerce. This will address ICAI concerns regarding the autonomy of banks towards their selection of Bank Branch Auditors, while making the process of allotment uniform, fair, transparent and equitable.
Publications Released
E-book on “Quick Insights on Professional Opportunities For Chartered Accountants”
With an aim to provide heightened focus of Chartered Accountants who are in Practice on various emerging Professional Opportunities such as RERA, Ind AS, Companies Act, 2013, Artificial Intelligence, Blockchain, Cyber Security and Data Analytics (ABCD of Technology), GST, Registered Valuers, Forensic Audit, International Taxation, Insolvency Practice, PSU & Bank Audit etc., ICAI has brought out the publication ‘Quick Insights on Professional Opportunities for Chartered Accountants”. The above publication is an e-book available at http://icaitv.com/sites/default/files/FLIP/QuickInsightsBook/main/mobile/index.html and contains information about empanelment opportunities and other professional opportunities available at trending areas alongwith important contact web-links.

It will act as a Single Point Referencer for Members in Practice. 
Revised Publication on ‘Ind AS Disclosure Checklist’
ICAI had brought out this Publication in June, 2018 to provide a ready reckoner of all the disclosures required by Ind AS, including disclosure requirements under Ind AS 11 and Ind AS 18 and also included disclosures required under Ind AS 115, Revenue from Contracts with Customers. However, with effect from April 1, 2018, Ind AS 11 and Ind AS 18 stands withdrawn, accordingly, the Publication has been updated to capture requirements for the accounting year 2018-19. This publication is for guidance purposes and should be read in conjunction with the relevant Ind AS and should not be considered as an alternative to studying the Ind AS. This disclosure checklist does not include disclosure requirements under other regulatory requirements e.g., Schedule III of Companies Act 2013.
e-Publication on FAQs on the Banning of Unregulated Deposit Schemes Ordinance, 2019
The ‘Banning of Unregulated Deposit Schemes Ordinance, 2019’ is the Government’s endeavor to bridge the regulatory gap in the wake of difficulties faced in investigating of ponzi-schemes, and the ordinance has been promulgated with an objective to completely ban unregulated deposit schemes; prohibit solicitation or acceptance of deposits outside the Regulated Deposit Scheme. It will also enable creation of an online central database for information on deposit takers.
In view of the significance of the Ordinance, ICAI has proactively taken an initiative of bringing out the e-publication on ‘FAQs on the Banning of Unregulated Deposit Schemes Ordinance, 2019’.The objective of this publication is to recommend the parameters to be followed by the Chartered Accountants while rendering consultancy and services to stake holders in economic and commercial field.
BoS : One Stop Referencer
A booklet namely “BoS: One Stop Referencer” has been published for the benefits of Regions, Branches, Members in Practice, Members in Industry and CA Students. This booklet contains detailed information about the initiatives and activities being undertaken by Board of Studies (BOS)- academic wing of Institute, contact details of the respective officials handling the activities, web addresses where detailed information related to the respective activity can be found.
Guidance Note on Reports in Company Prospectuses (Revised 2018)
The Guidance Note was previously revised by ICAI in 2016 to give impact to the changes made by Companies Act 2013 and SEBI in the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2009 (ICDR Regulations 2009). SEBI further revised the ICDR Regulations 2009 by issuing the ICDR Regulations 2018 in September, 2018 incorporating certain changes/additions in the requirements to be fulfilled by issuers for issue of securities, roles and responsibilities of various persons, financial information and disclosures to be given in prospectus, various reports and certificates to be given by the practitioners on financial information related to the prospectus etc.
These changes necessitated revision of the Guidance Note earlier revised in 2016. This revised edition of the ‘Guidance Note on Reports in Company Prospectuses’ incorporates the impact of these changes at appropriate places. The Guidance Note contains detailed guidance on various issues involved in such engagements.
Guidance on Resignation/Withdrawal
The Institute has released the “Implementation Guide on Resignation/ Withdrawal from an Engagement to perform Audit of Financial Statements” in time, which deals with various aspects of auditors’ resignation. This year, there have been a number of mid-term resignations by auditors particularly in the cases of listed companies. Considering this, ICAI had decided to examine the reasons and circumstances behind this and constituted a Group, which in turn had decided to create more awareness about the responsibility of auditors in form of issuing the desired guidance. In fact, International Auditing and Assurance Standards Board (IAASB) too had recognised this issue and held a specific conference in Paris.
Technical Guide on the Functioning of Audit Committee and its Review Checklist
The Audit Committee is inter alia responsible for liaison with the management; internal and statutory auditors, reviewing the adequacy of internal controls and compliance with the significant policies, procedures and reporting to the Board on key issues. The idea of having independent directors on the Audit Committee originates from the concept of effective Corporate Governance. The Independent Directors bring objectivity to Board decisions, protect common interest of the company and its stakeholders.
In this backdrop, ICAI has taken an initiative of bringing out a publication titled “Technical Guide on the functioning of Audit Committee and its Review Checklist” which is a comprehensive and self-contained reference document for the guidance of Audit committee on its functions, role, duties and ensuring effectiveness. As the name suggests, this Guide also provides a checklist for review of the Audit Committee. This publication would be a source of knowledge enrichment and of great help to the members and other stakeholders.
Technical Guide on Audit of Urban Improvement Trusts and Development Authorities
Urban improvement trusts and development authorities are constituted under the respective State Acts with the object of improvement and expansion of urban areas and many of such entities still follow cash-basis of accounting. To address the absence of any specific auditing guidance in this regard, as a proactive step, ICAI has developed and released Technical Guide on Audit of Urban Improvement Trusts and Development Authorities, which would provide guidance on various issues involved in audits of such entities.


Student Initiatives
·         ICAI commenced Live Virtual Classes (LVC) for Final level (targeting May, 2020 attempt) on April 3, 2019. Intermediate LVC targeting November,2019 are already running. During these LVC, entire syllabus is covered. Periodical Tests and Question Answers sessions will be conducted from time to time.
·         ICAI has been conducting Live Open House Sessions on Elective papers for all the Final level students of ICAI.  These are free for all the Final level students and during these sessions guidance is given to students as to how to attempt Case Studies in the Elective papers.
·         ICAI will be launching e-Books for Foundation Course students through Digital Learning Hub. These e-Books will contain chapter-wise/ unit-wise study material with embedded video lectures and self-assessment quizzes. The students will be able to make notes which will be retained in their login.
·         The students who have qualified CA final w.e.f. 2002 onwards but have not applied for Membership of the Institute due to non-completion of Management and Communication Skills Course can undergo the Management and Communication Skills through virtual mode. The aforestated students can undergo the course anytime anywhere.  After completing the Virtual MCS course of 90 hours they can apply for membership of the Institute.  The link to register is https://virtualmcs.icai.org/

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