Saturday, February 5, 2011

ICWAI urges Government for more regulatory powers

The Institute of Cost and Works Accountants of India (ICWAI) had urged the Government to empower the Institute through their members for more regulatory powers.

Mr. G.N. Venkataraman, President ICWAI urged the Ministry of Corporate Affairs to allow level playing field and strategic framework for the profession. He emphasized the urgent need to move from compliance governance to business governance.

While suggesting reforms to Mr. Salman Khurshid, Minister for Corporate Affairs, the Institute said that Cost Accountants must be allowed to attest and certify statement under Revised Schedule VI and the name of institute must be changed to the Institute of Cost & Management Accountants of India.

Mr. Khurshid expressed confidence that, "Under the present scenario, the Cost and Management Accounting professionals can play a major role in government initiative to control the inflation and make essential goods and services available to the public at a reasonable price".

Addressing the institute at ICWAI Bhawan, Khurshid said that the Expert Group constituted by the Ministry of Corporate Affairs to review Cost Accounting Records Rules, Cost Audit Report Rules and the Cost Accounting Standards in the present economic scenario has done excellent work.

"The Group has made valuable recommendations with the objectives of making the Indian industry more competitive while appreciating the need to position Cost Audit in the enterprise governance structure", he said.

In a bid to provide more visibility to the Institute and the profession of cost & management accounting, ICWAI suggested for acceptance and implementation of some of the recommendations of the Expert Group.

The Institute also suggested the following:

- Redraft the proposed provisions for cost accounting and cost audit to remove the anomalies under proposed clause 131 of the new Companies Bill, 2009 vis-à-vis Section 209 (1) (d) and 233 (b) of the Companies Act 1956

- Inclusion of ICWAI representative in the Expert Group for IFRS constituted by MCA.

- Inclusion of Cost Accountant in the audit of LLP Accounts.

- Inclusion of Cost Accountants within the definition of "Accountants" of the Direct Tax Code Bill 2009, Clause 284 (2).

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