Comments on Management Accountant Blog: The word Chartered hot debate in India

I think Santosh the first step could be to file an...

2006-12-09T09:36:00.000Z

I think Santosh the first step could be to file an RTI application with the MCA-Information officer and set the ball rolling.
Any citizen of this country can file an RTI if he proves he is the stakeholder of an issue.In this case since the name is in question as a consumer of the statute any citizen can claim that the Name is misleading the society to exclude a similar profession(ICWAI)from expositing its talent.Also this amouts to government creating a Monopoly condition within the statute by having a partisan approach towards chartering a category of accountants in preference to the other.This also resulted unequal distribution of work area statutorily enabled.
ICWAI has generated accountants with specialisation in Cost and management accounting in addition to financial accounts through a much easier route that allows flexibility to attempt exams while at work to earn bread at the same time not compromising standards in anyway through enforcement of 3 year relevant experience criteria,in contrast the Articleship limits the capability of the person to enter the course if employed at a better place and there is no option under ICAI regulation.Worldover the trend is to give alternatives.
The breed of accountants thus coming out of ICAI cannot be economic class neutral in this society.

CMA.R.Veeraraghavan to Santosh More options ...

2006-12-08T08:17:00.000Z

CMA.R.Veeraraghavan
to Santosh
More options 03:36 (4 hours ago)
On the basis of their reply we should initiate suitable legal action.
The question could be:
1.Is it true that MCA administers the ICAI and ICWAI institutes
through an act of parliament?
2.If so is it also true that these acts were amended as late as 2006?
3.If so did the ministry ruminate on the nomenclature to be adduced
to both these acts?
4.Were there any recommendation by an empowerwed committee to change
the name of the institute of ICWAI?
5.Was it further deliberated?if so the reason for retaining the
Orginal name of the institute?
6.Is the recommendation shelved or kept in abeyance?If so its status
as on date?
7.What is the orginal Import of the word Chartered in the ICAI act
and Works in the ICWAI act?
8.If these words do not reflect the functionalities of the
profession,the reasons for retaining the same in the year 2006 when
new act was passed?
9.If the word Chartered has decorative import why then the same was
not extended to the similar act governing cost accounting profession?
Like Chartered Cost accountant.
10.If the word Chartered had relevance in the pre-independent India
what then was the reason for retaining the same even today?
11 If the word chartered had a definitive meaning or sanctity in the
British Raj and has lost its relevance today why then the same is not
discarded from the nomencalture as did many words and concepts like
the "privy purse"?
12.the Chartered accountant reflect their functionality as financial
accountant?or do the word Cost and works accountant reflect their
functionality today as a management accountant?
13.Do the ministry feel that the customers and stake holder are kept
in the dark as to the orginality of the functions of the membersof
these institute?
14.Corrective measures if any in the mind of the MCA and the time
frame required to do the same?

CMA.R.Veeraraghavan to Santosh --- Hi To rais...

2006-12-08T08:16:00.001Z

CMA.R.Veeraraghavan
to Santosh

--- Hi
To raise a question in parliament is not much difficult as MPs are
thirsty for a question A Starred question would have an impact.
As regards RTI anybody can file however it is better that a person in
government service do not indulge in this and this is an effective
mechanism today.

"CMA.R.Veeraraghavan" wrote: > > --- yOU SAID IT....

2006-12-08T08:16:00.000Z

"CMA.R.Veeraraghavan"
wrote:
>
> --- yOU SAID IT.BUT WHO WILL LISTEN IN THIS WORLD OF DICTATED
> DEMOCRACY.THOUGH WE ABOLISHED PRIVY PURSE LONG BACK(NO THE BRITISH
- Hide quoted text -
THEMSELF DID IT)WE STILL FEEL
> OBLIGED TO RECOGNISE THE CHARTER OF A MONARCH THOUGH THE MONARCH OF
> ENGLAND MAY YET NOT SINCE IT REQUIRES A RENEWAL FEE AND CONTINUITY OF
> SANCTITY(IT IS NOT SANCTIFIED BY THE AUTHORITY FOR 60 YEARS).I THINK
> A RTI TO MCA FOR THE USE OF THE WORD CHARTERED AND ITS RELEVANCE IN
> INDIAN CONTEXT,AND QUESTION IN THE PARLIAMENT WOULD HAVE AN IMPACT.
> ANY TAKERS!

Santosh Puthran Replies: Hello Rohit, What you s...

2006-12-08T08:14:00.001Z

Santosh Puthran Replies:

Hello Rohit,

What you say is true... Change of name does do anything to a Cost Accountant unless and until it adds value to his career.

That is what the institute has to work towards. Sometime back I had sent an email how ACCA supports its passed finalist and members in their career progression and making the mark in the industry.

http://www.accaglobal.com/affiliates/support/

ACCA become a Chartered body in in 1984 even though it was formed in 1904. Same is the case with CIMA. They have earned a status of "Chartered body" after such long years of existence.

In India, the scenario is different. The bodies are formed by the Act of Parliament. To me or for everyone, these bodies are an extension of govt. To get the accounts audited, you have to get it done by a member of ICAI. Or Cost Audit should only be performed by ICWAI. As the time has passed, Company Secretary should be a member of ICSI. How can you expect the standards of these institute to improve, when the user has to go to these bodies. There should be a regulatory body to monitor these Institutes and encourage new accounting institutes to come up and meet the standard.

You are right to say, name change will not help. But unless and until we have no. of institutes, the plight of public and members will continue to remain what it is today. Over the period of time, overseas institutes will build up presence in India and then demand recognition for practise. See CIMA how it is encouraging professionals to do their course. And now companies have taken a notice to hire CIMA. You will notice ACCA is offering country specific variants for their courses and it would build up membership base everywhere. At the same time , they are creating opportunities for their members and students in the industry.

The point I raised for the word "Chartered" in ICAI is to know how it is relevant in Indian context ? If the word "Management" misleads the public, then so does "Chartered".

Read ICAI website:

1949

The Chartered Accountants Act, 1949 was passed on 1st May. The term Chartered Accountant came to be used in place of Indian Registered Accountants.

Chartered Accountants Act was brought into effect on 1st July. The Institute of Chartered Accountants of India is born.

Why does no other institute has this fancy word ? Does "Chartered" word add some type of goodwill to accountant. Registered Accountant is an appropriate name for an accountant who is doing financial accounting.

All the bodies have to raise their standards, their internal workings, equal focus to members in employment and practice... Our accounting bodies primary focus is getting statutory audits/certification for members in practice. Unless we until there is a change in how the accounting bodies are recognised.... we continue to talk about this subject for times to come...

Regards,

Santosh Puthran

I have received following comments when I posted o...

2006-12-08T08:14:00.000Z

I have received following comments when I posted on different forums.

On 07/12/06, ROHIT VORA wrote:

Hi,

Do you think that by simply a Change in the name from Cost and works
to Cost And Managent could change the life of the Individual Cost
Accountant?

If all Cost Accountants at Job or consultancy delivers to and for
management than by result only we all can recognise as Management
Accountant or Consultant

Rohit Vora