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ICWAI gets its name changed to ICAI and its members to use ACMA and FCMA

Written By Admin on Tuesday, 24 January 2012 | Tuesday, January 24, 2012

THE INSTITUTE OF Telephones: 91-11-24622156-58

COST AND WORKS ACCOUNTANTS OF INDIA Fax No. 91-11-43583642

(STATUTORY BODY UNDER AN ACT OF PARLIAMENT) Email: info@icwai.org

3,Institutional Area, Lodhi Road, New Delhi Delhi-110003 Website: www.icwai.org

HQ: 12, Sudder Street, Kolkata- 70016

PRESS RELEASE

January 19, 2012

ICWAI gets its name changed to ICAI and its members to use ACMA and FCMA:

Mr. M.Gopalakrishnan, President of ICWAI announced in the press meet held on 19th

Jan 2012, on the sidelines of the Regional Conference being held at Bangalore, by

Southern Regional Council that the Institute has been given a new year gift by the

Government of India, by virtue of the passing of ICWAI Amendment Act 2011, to enable

their members to use the designation ACMA and FCMA denoting Associate and Fellow

membership of the Institute respectively. This will enable the members working in India

and abroad, being recognized by a common designation by which similar members are

known throughout the globe. This is a major boost to the members of the Institute who

serve in various countries across the world and were facing discrimination due to their

earlier designation AICWA and FICWA.

He said that the entire members community thank the Honourable Union Minister of

Corporate Affairs, Dr.Veerappa Moily, for his scholarly statesmanship for accepting their

just demand that has been pending for decades. He complemented the Ministry for their

unstinted effort to promote good corporate citizenship through various landmark

initiatives such as Business Responsibility Guidelines (CSR), e-govenance and Investor

Enlightment which are pioneering moves at a global level.

In another amendment, in the same Act, The Institute of Cost and Works Accountants of

India (ICWAI) will be henceforth be known as The Institute of Cost Accountants of India

(ICAI). Asked whether this will create confusion amongst the public due to similar

accounting body already in existence, he affirmed that the ICWAI tried its level best to

convince the Parliamentary Committee which deliberated on the name change that the

name that was introduced by the Ministry in the Bill i.e “The Institute of Cost and

Management Accountants of India” will be the best choice. Although the Committee

accepted the logic as correct, but could not accede to the demand, as there was

vehement opposition from the sister body. He said that the members of the ICAI (New)

are clear that their profession is for developing and propagating “Cost and Management

Accounting”, irrespective of their name being ICAI.

Making Indian economy cost competitive:

Queried about the need for emphasis on cost accounting, Mr.Gopalakrishnan

highlighted that mere reporting of the transactional summary through Financial

Statements or compliance with law does not make an enterprise competitive. It is the

efficient utilization of limited resources or eliminating wastage and inefficiencies makes

them competitive. In a market economy, those who are efficient survive and others fall

by way side or get absorbed by better managed companies. He pointed out that Indian

corporate sector need cost consciousness more than ever in the coming years, as the

they are facing flatter income, high prices and shrinking margins. In a well connected

world the domestic economy gets hammered by the happenings across the world.

Cost Competitiveness in Government Schemes:

He also pointed out that Cost Competitiveness extends to Government Schemes also.

He said that the Institute has been approached for providing training to Officers of

Comptroller and Auditor General through their Regional Training Institute at Kolkata to

do Performance Audit of Government Schemes such as MGNREGA, on a Pilot Study

basis. Based on the success of the programme, it will also be extended to other

schemes such as

• Rajiv Gandhi GrameenVidyutikaranYojana

• SarvaSikshaAbhijan

• PradhanMantri Gram SadakYojana

• PradhanMantriGramodayaYojana

• Swarnajayanti Gram SwarozgarYojana

• SwarnaJayantiShahariRozgarYojana

Legislative mechanism for Cost Accounting and Cost Audit:

He said that in order to make the cost accounting practices uniform, the Institute has

come out with Cost Accounting Standards and Generally Accepted Cost Accounting

Principles, which will remove the subjective element in computation of costs and make

them comparable across entities. It will be very useful to arrive at the reasonable prices

to be charged to public based on costs for public services like education, medical

treatment, toll roads, municipal services and public transport.

The Government has also recently revised the Cost Accounting Records and Cost Audit

mechanism from a format based to a principle based approach, which will enable

various entities to introduce cost accounting systems and provide assurance to various

tariff authorities such telecom, pharmaceuticals, sugar, cement, pesticides, electricity

and chemicals to fix tariffs based on a reasonable return over costs.

Helping transformation of Reporting:

He informed that the Institute is also spearheading the new form of Corporate Reporting

known as Integrated Reporting, which aims to reduce the voluminous Annual Reports

which report predominantly only the financial reports, and make slim but meaningful

reports on environment, social and governance aspects apart from financial reports.

The Institute has been admitted as a member of Accounting Bodies Network of Prince

of Wales A4S Foundation, which aims at making Accounting work for Sustainability of

the world.

Contributing to robust Government Accounting:

He also pointed out that the Institute also has been admitted as a member of

Government Accounting Standards Board, which is introducing Government Accounting

Standards for Financial Reporting both for commercial entities such as railways but also

for service providers like local bodies. The Institute is also helping Department of Posts

to introduce modern Cost Accounting Systems to efficiently use the 1,50,000 post

offices across the country deliver communication services at reasonable cost to more

than 6 lac villages in the country.

Raising new global generation:

Mr.Gopalakrishnan said that the Institute has also introduced e-governance for

providing best service to more than 4 lac students who study the course. Through the

Distance learning and Direct Learning centres, they enable more than 50,000 students

acquire qualification which are recognized all over the world. The Institute also

organizes campus Placement to successful candidates twice in a year with a success

rate of 70%. As a body promoting cost consciousness, it charges a very reasonable

cost of below Rs.50,000/- per person for the entire course. The members can acquire

automatic membership of Institute of Management Accountants –USA and Institute of

Public Accountants-Australia. They are exempted from 11 papers in another global

management accounting body- CIMA-UK.

Presence across the country and abroad:

Mr. Gopalakrishnan said that the Institute through its 4 Regional Councils and around

95 Chapters throughout the country, caters to around 50,000 members and 4.50 lac

students. More than 70 centres conduct examinations twice a year in which around

1,40,000 students appear. With the demand for professionals who help different entities

to take informed decisions based on costs, growing by leaps and bounds, it provides a

very good opportunity to any young person aspiring to become a globally renowned

CMA.

The Regional Conference which is being inaugurated by Dr.Veerappa Moily,

Honourable Minister of Corporate Affairs, will enable around 1000 professionals across

the five states to meet and exchange ideas on making their organisations more

competitive. Eminent experts from across the country are expected to address the

participants.

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