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Visionary Approach for change of name

The name change committee of ICWAI has submitted letter to Honorable Minister of Corporate Affairs - Shri Premchandji Gupta to change the name of ICWAI to The Indian Institute of Cost & Management Accountants" (IICMA).

Similarly the letter proposes to delete the word "Chartered" from name of The Institute of Chartered Accountants of India. Click here to read more

A letter is also written by Mr V C Kothari, Member Council of ICWAI to Mr. Sunil Talati, President ICAI to support the cause for name change of both the Institutes of India. Click here to read more

Some ICAI members have did not appreciate the fact that name change of ICAI is required and comments were made in different yahoogroups.

"Vispi Patel wrote: A proposal to delete the word CHARTERED from the name of ICAI is in Bad taste.

V J Babu wrote : Hi Mr.Kothari. How can a person like you can suggest for deleting the words :chartered: from the name of our institute. It seems that instead of trying to create a brand image for CMA, people like you are trying a negative approach.Are you excepting to reap a benefit by deleting the word from our institute's name? then you are wrong?"

My views are:


The proposal for change of name of ICWAI and ICAI is in the right direction.

The members of ICAI should do an of introspection instead of writing emails that ICWAI has taken steps to gain any mileage out of it.

  1. List of Specialised institutions as per GOI directory http://goidirectory.nic.in/specinst.htm .None of the institutions have word "Chartered" in the name. Majority have institutions name "National Institute of.... or Indian Institute of...." So why ICAI has word "Chartered"
  2. ICAI's website : Read History The change to "Chartered Accountant" happened in year 1949. And India become republic in year 1950. Although name change was made, ICAI was not body given any status as per "Royal Charter". Did ICAI do it to enhance the brand image then ?
  3. The meaning of word "Chartered". Read http://www.reference.com/browse/wiki/Royal_Charter
    As you read the link above, "A Royal Charter is a charter given by a monarch to legitimize an incorporated body, such as a city, company, university or such."
  4. India is a republic. We do not have Royal Indian Airforce nor Royal Indian Navy.
  5. How a body becomes a "Chartered" body in UK - Read here
    1. ACCA - In 1984 it became the Chartered Association of Certified Accountants to reflect the fact that, a decade earlier, it had been granted a Royal Charter of Incorporation. In 1996 ACCA became the Association of Chartered Certified Accountants (ACCA). Read More
    2. CIMA : 1976 The Institute was granted the Royal Charter.* *The Royal Charter recognises CIMA as being among the top professional bodies in the UK, and allows us to qualify people as members. As a chartered body, we are responsible for observing UK government standards. Read More
  6. The word "Chartered" is only used in British context. You will note American/Hongkgong/Singapore Accounting bodies do not use the word "Chartered".

The question is not why ICWAI has requested the name change for deleting the word "Chartered" from ICAI. But the question that needs to explained by ICAI is why ICAI should continue to use the word "Chartered" when it is no way connected with Royal Charter, UK but is a elite accounting body formed by Act of Parliament in Republic of India.

  1. Interview President ICWAI
  2. ICWAI applies for name change
  3. Choosing an Accounting Qualification 22-Dec-07
  4. Accounting Profession in India 22-May-08
  5. The word "Chartered" a hot debate in India 05-Dec-06
  6. Now Company Secretaries in India want "Chartered"
  7. Shortage of Accountants
  8. Probing Accountant's attitude to the Accounting body
  9. Professional Body
  10. ICAEW qualification in Middle East
  11. ICWAI v/s CIMA
  12. ACCA vs CIMA
  13. Profession v/s Professionalism 29-Jun-08
  14. Accounting Technician Course in India
  15. ICAI doubles membership fees
  16. Home
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Comments

M. Mayur Prabhu said…
Dear Santosh Puthran,
I am a subscriber to Management Accountant. I am a CWA and a CA.

Th following is the definition of Charter from Encyclopedia Brittanica:

Document granting certain specified rights, powers, privileges, or functions from the sovereign power of a state to a person, corporation, city, or other unit of local organization.

In the case of the ICAI, we can take the Sovereign body to be the GOI. I do agree with you that no other institute has "Chartered" in its name. What I feel is that the word "Chartered" is more of a practice from the British times. May be no one thought of changing the name as all the people have been accustomed to the name.

The burning issue now is the name change of ICWAI. Worldwide professional institutes have transformed from having "Cost Accountants" in their names to "Management Accountants" in their names. So, the global profession is clear - they have steered towards Management Accounting, for costing can be automated by IT Systems. It is this area - Management Accounting, we should focus on and what business really needs. I, therefore, suggest a name of IMAI -Institute of Management Accountants of India.
M. Mayur Prabhu said…
Dear Santosh Puthran,
I am a subscriber to Management Accountant. I am a CWA and a CA.

Th following is the definition of Charter from Encyclopedia Brittanica:

Document granting certain specified rights, powers, privileges, or functions from the sovereign power of a state to a person, corporation, city, or other unit of local organization.

In the case of the ICAI, we can take the Sovereign body to be the GOI. I do agree with you that no other institute has "Chartered" in its name. What I feel is that the word "Chartered" is more of a practice from the British times. May be no one thought of changing the name as all the people have been accustomed to the name.

The burning issue now is the name change of ICWAI. Worldwide professional institutes have transformed from having "Cost Accountants" in their names to "Management Accountants" in their names. So, the global profession is clear - they have steered towards Management Accounting, for costing can be automated by IT Systems. It is this area - Management Accounting, we should focus on and what business really needs. I, therefore, suggest a name of IMAI -Institute of Management Accountants of India.
------
Mayur
Santosh Puthran said…
Hello Mayur,

The point is that we, India, is republic and we have a constitution. UK is a monarchy and they have a different way of managing. UK has Royal Charter and institution recognised by Royal Charter is considered to be a chartered body.

The word "Chartered" in India for ICAI came up in 1949 (after British times)... earlier the accountants were known as Registered Accountants in India. The change of name of ICAI name is essential to keep in tune with naming convention with other institutions in India and also remove any British legacy.

Coming back to issue as a premier body for standard setters in the country as well as auditing. Common sense should prevail that India needs independent bodies for standard setter and auditing ... just like in any developed country or any company where the accounting and auditing dept. are seperate. In India, ICAI has been given too much powers/responsibilities which is unhealthy for corporate india.

The role of accounting changes with the business. I met a CA who qualified in 1960s and he talked about posting and casting errors etc... which now is viewed as technical issue with the system.Similarly the role of management accountants have changed since accountants have tools to analyse the information and advise the management.

Keep commenting and sharing your thoughts.

Cheers,

Santosh
gudu said…
Mr Santosh Puthran
you dont seem to understand the reason why an indipendent soverign nation awards a charter ,especially in the context of the accounting profession

(by the way. "Charter" is not a british invention,or legacy as you put it.look in wikipedia for its origin & how used

if you must have by now read the article in wikipedia ,& still call charter a british legacy , then you should stop using english language altogether, because thats the biggest peice of legacy the britishers have left to us & also to the whole world)

Any Charter confers A certain right upon an institution or person to carry on certain activity.The force is drawn from the legislature.

You have a misconception that only monarky can confer charters

Any Legislative body That has a legal Jurisdiction over a certain geographical area or a political area of influence can confer a charter

Go to the website of ICAI & see whats the purpose of the establishment of the institute

Its the regulation of the accounting profession .

Government of india through this charter reguates,prescribes, moderates & streamlines the accounting Practice in india

The members of the institute i.e the chartered accountants by the force of the legislature are empowerd to examin the accounts of each business/not for profit entity that has a revenue stream. To see that the prescribed practices & rules have been followed.

As regarding giving too much powerin the hands of ICAI,

Let me tell you the very fudamentls of the accounting professions is 1. Consistancy
2. Comparability (hope you are a commerce student

if there are multiple /independent bodies for standard setting & auditing.this would hinder the government to implement if policies

AND AS COMMEN SENCE SHOULD PREVAIL

Having multiple/independent bodies would defeat the very principals of the accounting profession i.e
1.consistancy
2.Comparability

you should also refresh your knowledge about the seperation of the accounting & auditing funtion in the developed world

It will be difficult for the TAX administration of a country to operate if both are seperated
gudu said…
Mr Santosh Puthran
you dont seem to understand the reason why an indipendent soverign nation awards a charter ,especially in the context of the accounting profession

(by the way. "Charter" is not a british invention,or legacy as you put it.look in wikipedia for its origin & how used

if you must have by now read the article in wikipedia ,& still call charter a british legacy , then you should stop using english language altogether, because thats the biggest peice of legacy the britishers have left to us & also to the whole world)

Any Charter confers A certain right upon an institution or person to carry on certain activity.The force is drawn from the legislature.

You have a misconception that only monarky can confer charters

Any Legislative body That has a legal Jurisdiction over a certain geographical area or a political area of influence can confer a charter

Go to the website of ICAI & see whats the purpose of the establishment of the institute

Its the regulation of the accounting profession .

Government of india through this charter reguates,prescribes, moderates & streamlines the accounting Practice in india

The members of the institute i.e the chartered accountants by the force of the legislature are empowerd to examin the accounts of each business/not for profit entity that has a revenue stream. To see that the prescribed practices & rules have been followed.

As regarding giving too much powerin the hands of ICAI,

Let me tell you the very fudamentls of the accounting professions is 1. Consistancy
2. Comparability (hope you are a commerce student

if there are multiple /independent bodies for standard setting & auditing.this would hinder the government to implement if policies

AND AS COMMEN SENCE SHOULD PREVAIL

Having multiple/independent bodies would defeat the very principals of the accounting profession i.e
1.consistancy
2.Comparability

you should also refresh your knowledge about the seperation of the accounting & auditing funtion in the developed world

It will be difficult for the TAX administration of a country to operate if both are seperated
Praveen said…
I agree with Gudu. Why should we bother about changing the name of something whose brand is well-established?

What is more important and very much necessary now is to have an independent body which will regulate the CA profession, especially the CAs in practice. Allowing ICAI to do that is allowing criminals to act like judges.

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