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ICWAI vs CIMA

"The Institute of Cost and Works Accountants of India (ICWAI) is understood to have sent a letter to the AICTE (All India Council for Technical Education) complaining about the operations of the UK-based CIMA (the Chartered Institute of Management Accountants) in India. " This is a recent article in Hindu Businessline. Read more


This is like Kramer vs Kramer or Akele Hum, Akele Tum. ICWAI protecting the professional turf in India. Right thing to do. CIMA members should not be able to practise in India.



Professionals from India are spreading out across the globe and so is Indian business. Our institute has progress across the globe and endeavour that members get equal recognition and resiprocation with other accounting bodies.

Share your comments and thoughts.


Cheers,

Santosh Puthran


Does CIMA UK qualification add value to Member of ICWAI ?Click here to find more

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SSRK's Management Accounting Knowledge Repository

The knowledge repository for Accounting Professionals by SSRK is one of the best collections in the area of

Cost & Management AccountingFinancial Accounting and Auditing Taxation
It contains pdfs, powerpoint, word and excel sheet on various topics and it is a ready reckoner for you. This is maintained as one of the useful links in the Management Accountant's Blog. Please click here to know more.

If you have good presentations or pdf, please send it to SSRK and he should be happy to upload it for the benefit of professionals.

Cheers,

Santosh Puthran
AICWA
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Trying to enlist the areas where the ICWAI should concentrate on developing Skill set for Younger generation of MAs

Accounting and Auditing(entire gamut of Accounting(financial and management)and Auditing. Finance(entire gamut of financial sector). Strategy(Business strategy),Corporate Governance,Ethics and Social engineering(inclusive growth). Management-all aspects with latest trends focussing on better utilisation of resources. Information Technology. Public finance and Governmental aspects of Governance.
These are some of the most crucial areas where hard and soft skills are to be developed by the institute.Blog posted by RV




ICWAI on wikipedia

A couple of months back, when I searched on wikipedia for ICWAI, the search did not reveal anything. I wondered how come one of the premier institute of the country is not available on wikipedia.

Then writing about ICWAI was my first post on wikipedia. I had no idea whether this post will be accepted. A couple of days later there was additions to post... This meant I got someone interested to write more about institute. Then I added about the bill pending in the parliament and provided the links of MCA website. During that period there were also remarks by wikipedia team that the post do not confirm to guidelines of wikipedia.

Later on wikipedia added links on the posts. You may observe there are number of hyperlinks on the posts, so when you click on it, the link leads to some other topic.

Today I observed that there is good paragraph on Government Department. So things are moving on wikipedia about ICWAI.

I had requested more information about ICWAI about history, major achievements…

Death of PCA site ring

Today I am taking off the Practising Cost Accountants web ring from our Management Accountant blog. The prime reason is lack of response from our practising fratenity.

I have tried to reach our practising members by email in CMA yahoogroups and also writing to them on their email id that was published on icwai website. There has been no response so far. Better to share ideas with our members who are in employment rather than the practising ones... most of them who do not have a website

One last chance, it is available on this post.

Cheers,

Santosh Puthran


Companies Bill and its ripple effect on Chartered Accountants and Auditors

Source

The principles contained in the Companies Bill 2007 will impact positively on business.

It should facilitate the improvement of governance and transparency in public interest corporations while reducing the unnecessary burdens currently being experienced by smaller business.

In July 2006 the South African Institute of Chartered Accountants (SAICA) sought its members' views on the possible removal of the audit requirements for smaller companies.

SAICA received 140 submissions, the overwhelming majority of which maintained that there is a category of smaller companies that should not be required to be audited as the costs of an audit outweigh the benefits.

A small minority argued that SAICA should oppose any proposal to relax the requirements for companies to be audited because by reducing the number of audits, the profession's ability to train chartered accountants and auditors would be restricted.

In preparing its comment on the Bill, SAICA considered the Department of Trade …

Looking back when I started posting in CMA community

I was checking in the yahoogroups, I posted my emails and articles. The first post I made to was to WIRC yahoogroup Msg 67 on May 20, 2007 and CMA India msg no 129 on June 13, 2000. Looking back it has been 7 years when I started posting in the group. The group increased from small numbers and progressed 500 members.

The ideas I had then about our ICWAI community still remains the same. "Progress Through Sharing". This was one of the theme in an article in CIMA magazine in year 1999. It is true in our professional life.


Then there has been steady increase in ICWAI yahoogroups... nicma, cma southindia and student yahoogroups. The largest one is cacwacslinks yahoogroups which has that has largest membership. The quality of discussion in this group is really good.

The question "Has the internet networking really helped us ? ". The credit of starting the ICWAI egroup goes to Mr. Ramesh Joshi. Networking helped us to know about each other. Some of them got jobs.…

Annual Accounts of company

Every year the companies publish there Annual Reports and send it their shareholders. Millions and millions copies are printed and sent over to the shareholders. Majority of copies remain unread and gets passed on to the recycle centres or bin.

These days, almost all the public limited companies are publishing their Annual Reports on the website which is accessed by the public. The pdf document are as good as reading the report on paper. There is a global initiatives to save trees. These annual reports are expense to the companies when they are publishing them on the website.

Most shareholders are interested in dividends. Almost all should have access to internet. I feel that companies should give a choice to the readers of financial statements whether they require a printed copy be sent to them or they want to visit the website and see the electronic copy. If 70% public opt for electronic version, then we would lot on paper and stop cutting of trees. Going green is now the mot…

Millions or Crores in P&L and Balance Sheet

You will most often hear about any MNC - "It is 7 billion US dollar company". Then you tend to make a comparison of turnover based on millions and billions rather than crores or lakhs. I was looking at financial statements of TCS, Satyam & Wipro - the top three Indian IT companies. TCS financial statements is in Indian Rupees and reported the amounts in crores. Wipro's financial statement is in Indian Rupees and reported in millions. The consolidated statements in US GAAP is Indian Rupees with translations in US Dollars. The press release statement reports in Indian rupees with translations in US Dollars Satyam financial statements are in Indian rupees and reported in 'crores. The US Gaap statements are reported in USD and in millions. You may read the statements from the reader's point of view:Investor in India :When a reader has to compare statements of TCS & Wipro, he has to convert either Satyam statement into millions or TCS into crores. Otherwise he ca…

Accountant, Excel & Google pack

Most accountants are married to Microsoft Excel and most of them work out the way to link the sheets in the workbook how they will give them the perfect results. When I started in accountancy, the first spreadsheet software that I used was Lotus 1-2-3. Most of the functions was executed using @sum...... At that point of time it was the wonderful software. Then came Excel and it changed the entire accounting community.

Prior to MS Excel, Lotus was the market leader and they were quite certain that no one would every look for other spreadsheet solutions. At that time, you cannot open an excel document with lotus 123. Since everyone was using 1-2-3, some of them did not bother to use excel. In the ever changing world, how can you think that you can be a market leader forever and expect your customers to use the products what you produce.

I had worked on Lotus 123 Smartsuite which is a GUI version of lotus and it is pretty good. Some of the report tools were quite impressive. But.... the…

Recommendation on use of term accountant

Tuesday, 3 April 2007 18:56

The Irish Auditing and Accounting Supervisory Authority has recommended to the Minister for Trade & Commerce, Michael Ahern, that the term 'accountant' should be afforded statutory recognition.

In a statement issued today Minister Ahern indicated he was now referring the issue to the Company Law Review Group for further consideration.

The IAASA are recommending that people should be allowed offer 'accountancy' services like book keeping but unless they are appropriately regulated they would not be entitled to call themselves accountants.
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This would mean that entitlement to use the term accountant would be restricted to the membership of the nine prescribed accountancy bodies and those separately registered by the state as auditors.

The Institute of Chartered Accountants in Ireland (ICAI) said:'We welcome the IAASA report, particularly its acceptance that affording some form of recognition to the term accountant is a consumer …

Lowballing

‘Lowballing’ is the ‘loss-leading’ practice in which auditors compete for clients by reducing their fees for statutory audits. Lower audit fees are then compensated by the auditor carrying out more lucrative non-audit work (e.g. consultancy and tax advice). Audits may even be offered for free. Such ‘predatory pricing’ may undercut an incumbent auditor to secure an appointment into which higher price consultancy services may be sold.

Ethical risks

There is a risk of incompetence if the non-audit work does not materialise and the lowballing firm comes under pressure to cut corners or resort to irregular practices (e.g. the falsification of audit working papers) in order to ‘keep within budget’. However, a lack of audit quality may only be discovered if the situation arises that the company collapses and the auditors
are charged with negligence.

If, rather than comprise the quality of the audit, an audit firm substantially increases audit fees, a fee dispute could arise. In this case the c…

Corporate social responsibility and Role of Cost accounting record rules and cost audit report rules.

AIMS of CSR:

• Control Risk Management.
• Improve stakeholder relations & operational impacts.
• Comply Integrated EMS, Social and Productivity Management system.
• Compliance through supply-chain .
• Work out the relationships between business drivers and CSR dimensions.
• Improve strengths and weaknesses of organizational expertise.
• Estimate costs of improving CSR.
• Priorities your initiatives in the light of these factors.
• Publicize your intentions in mission and/or value statements.
• Adopt a Ethical Code.

AIMS of COST Audit:(rule 2 c rule 4 G.S.R. 924(E).-sub-section (4) of section 233B,read with subsection
(1) of section 227 and clause (b) of sub-section (1) of section 642, of the Companies Act, 1956 (1 of 1956),

Based on my/our examination of the records of the company subject to aforesaid qualifications, if any,
I/We give my/our observations and suggestions on the following

(a) the adequacy or otherwise of the cost accounting system including inventory valuation in vogue in the comp…

Quantitative Information in return forms-----Income tax act coming closer to the bottomline and will have to move towards recognising cost accountants

The law does not seek mandatory maintenance of quantitative details of goods traded or manufactured, but the return form now seeks quantitative details of raw materials consumed and finished goods produced with details of out-turn. Not a happy situation for taxpayers, considering that the form has been announced after the end of the financial year.


The law does not seek mandatory maintenance of quantitative details of goods traded or manufactured, but the return form now seeks quantitative details of raw materials consumed and finished goods produced with details of out-turn. Not a happy situation for taxpayers, considering that the form has been announced after the end of the financial year.

Blog Contributed by RV


CGA Canada authorised to conduct statutory audit of companies+Equal treatment of accounting institutes ...

CGAs are employed by businesses of all sizes and from all sectors. A number of them are partners in public practice firms; others work in government, industry, commerce, or non-profit sector. As of 2005, CGAs are authorized by provincial legislations to perform audits of public companies in every province and territory in Canada, except Quebec.

Judicial rulings have granted CGAs the rights to audit a selected list of public bodies in Quebec. Pursuant to the terms of the Agreement of Internal Trade (AIT), CGA-Canada has commenced challenges to the audit restrictions in Quebec. The AIT panel ruled that the Government of Quebec must take actions to resolve the barrier of entry into Quebec public accounting for CGAs. As of December 2006, the Quebec Government on introducing legislation that, if passed, will open the field of public accounting to CGAs in Quebec.
On 18 December 2006, CGA Canada and the Association of Chartered Certified Accountants (ACCA) announced a Mutual Recognition Agre…

CGA Canada and ACCA working together

ACCA and CGA-Canada Mutual Recognition Agreement (MRA)

Related Information

The MRA between CGA-Canada and ACCA not only brings together two international accounting associations with similar values and approaches, it reflects the continuing globalization of the profession. The agreement provides a mechanism for members to become designated by the other association. It also formalizes the relationship between two internationally active professional accounting bodies.

The accounting profession is experiencing growth worldwide, reflecting the demand for accredited professional accountants who have expertise in international accounting standards. Both ACCA and CGA-Canada believe that the profession is best served by partnerships which promote global standards, and enhance the value of accountants in the workplace and by qualifications which provide opportunity for talented people to develop skills required by employers.

CGA-Canada experienced a 6.4% increase in the number of students and memb…

Management accounting Guidelines of CMA_canada

Read the links below:

http://www.cma-canada.org/index.cfm?ci_id=4617&la_id=1

http://www.cma-canada.org/4/6/1/6/index1.shtml

http://www.mia.org.my/handbook/guide/IMAP/amas.htm

An Important question is why ICWAI is not copy/pasting these valuable resources is it some form of hypocrisy surrounding its governance.When we cannot make it then Beg/Steal/Borrow and if can afford it Buy the same and that is the bottomline.



What for are we waiting cant we ape even our sister institute in India with regard to above philosophy.

Blog Contributed by RV

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Auditors refuse to certify companies’ tax payments - News item

It is looks like a outsourcing strategy ie. a company outsources internal audit department to external firm. Do you feel it is good it would healthy for accounting profession that they certify tax returns submitted to the inland is correct ? Is the Inland Revenue failing to do what it ought to do ?
I picked this article submitted by SOUMEN DUTTA in CMA Yahoogroups. We have too many rules in the India that expects the returns filed to Tax Authorities are to be certified by Accountants. Personal Tax Returns are not required to be file thru' Accounting Firms but people go through the accounting firms as they make their life easier.
Do you feel introducing Saral systems have not yet made our Tax returns Saral ?
Do you feel the Tax Authorities should have call centres to get closer to people !!! This happens in US/UK/Singapore.
Share your thoughts ... Regards, Santosh Puthran AICWA
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Accounting Firm with ISO certification

As I was browsing our blog and then clicked on one of the Ads that was flickring at the bottom of the blog, I came across an accounting firm with ISO 9000 Quality Standards certification.

"ISO9000 Quality Standards Glazers were one of the first Accountancy practices in the UK to be accredited with ISO9001, the international standard for quality of service. The firm is continually reviewing and improving its commitment to clients and the services offered."

May be this is a trend in UK to follow quality standards. I am not aware that their accounting bodies have directed their practioners to make their firms ISO compliant.

Are there any audit firms in India to have ISO accredited ?

Another thing I noticed about Glazers , Chartered Accountants, was their partnership profile. Five partners are ACA and one of them is ACCA. In UK, the legislative requirement states that majority of the partners should be from one accounting body and they can form a partnership. In this case, it is C…