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Can we Check out of Legislative sphere without risking our to derecognition.

Accountants today across the globe are what the legislation want them to be. In our attempt to our emphasise our role as business manager/process manager/financial engineers do we have an option to exit out of legislative zones.

Take for instance if ICAI decides tommorrow to derecognise itself from Statutory financial audit and taxation role what is left is a simple Post graduate qualification in Accounting with its members. Then the question arises do accounting need accountants in business. In todays IT world a physical accounting qualification is almost not necessary ofcourse there will be a lot of back up exercise but they are one time with few manning (rather miniscule) which means Accounting perse works on legislative sanctity and compliance requirement as somebody the other day said if there were not 2 million pages of Accounting standards probably its conformance certification would not have been a must.

Well a question may be asked what if the stakeholders other than legislators want accounting the answer is then tailor amde accounting and not compliance accounting. Auditing being a corollary to existing of accounting would not have survived in this manner. It is a bid question if sec 209 drives ICAI/ICWAI and keeps them kicking the answer is to a large extent true for both the institute.

At this point of time if one suddenly visualises the potential of members of ICWAI/ICAI as more than just a legislative accountant then watch out the profile of both the institute and appreciate who has to re-jig. Members of ICWAI(98%)in the industry and ICAI(35%)in the industry. But this is a partial story practising ICAI members in large numbers are in accounting zone specially in SME segment.

If ICWAI suddenly thinks that we have to focus ourself as Business managers and not simple accountants fine they are free to think so but how come such a thought blocks progress in Legislative sphere to such an extent that ICWAI has to exit from Legislative support is Big question to be pondered upon by the stake holders (40000+200000+industry+GOI) and not just the council or a part of it. A plebisite ofcourse is a must.



Are we prepared?





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Comments

Unknown said…
This is Right question,u have raised at right time. our council members should look in this matter. If no legislative support to ICWAI, then this qualification will be treated like B.COM/M.COM. In India, Accounting Institute will be survived with the help of Govt statutory support.
13 June 2007 at 09:43:00 BST
Unknown said…
Legislative safegaurd is one thing. All the profession in the country is regulated and this by itself is a good thing. However, in case of Accountancy professional, the GOI has delegated its authoritiy to the accounting body itself instead of having a regulatory board. Actually speaking, the dominant accounting body ie. ICAI has been exercising its influence on the profession. This is unlike in developed countries.

Imagine, Doctors graduate from only one Institute and that institute is regulatory body of the profession. In UK, there are 5 accounting bodies for the purpose of auditing and accountancy. There are indepenent boards for framing the accounting standards and auditing standards.

Now GOI should rethink about having an arrangement.

The second discussion in the blog is about ICWAI. The think tank has to rethink how they should focus their membership base and their infrastructure to make a mark in the profession.
15 June 2007 at 16:15:00 BST
Ubhaya Vedanthi.R.Veeraraghavachariar said…
This is the reaction of one of our learned Sr.Member who has youthful ideology and a proactive person for the profession see his serious note:

Conceptually I agree MAcs can do what FAc (CAs) can do.
Ideally we shd unify Statutory Internal accounting needs as well as corp governance (CA CWA CS) and eliminate such debates! For any profession it pays to have the ability to offer multiple services within a range. It is line extensions in a product portfolio. More importantly alliances must be made with all the players in the value chain that together results in delivering value to the end user/consumer.
If this argument is accepted (understood ?!) there can be no room for conflicts and competition amongst those who provide services of Statutory Financial Accounting and Certification, Internal Management Accounting and Corporate Governance (CA,CWA,CS). This is the rationale behind my call for unification.
18 June 2007 at 11:05:00 BST
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