President's Message - December 2011 - (01-12-2011)
--------------------------------------------------------------------------------
Dear Friends,
While presenting the Annual Budget for 1956-1957, the then Union
Finance Minister Shri C. D. Deshmukh had said: It is enough to state
broadly my view that by means of the First Five Year Plan we have laid
sound foundations for a more massive superstructure in building up the
country’s economy. He went on to present the vision of his mission
which is relevant even today: The problem is not merely one of raising
the statistical average of per capita incomes which could easily be a
will of the wisp; it is one of raising the lowest incomes and of
opening out to the younger generation avenues of growth and
advancement that will bring out the best in them. For this, the
present generation has to make sacrifices. It has to work harder and
it has to abstain from asking for immediate returns. He always
considered our profession a Public Service. He had advised us to
follow high ideals amidst an abundance of pressures and temptations,
besides carrying out our statutory responsibilities to report on
accounts to the shareholders. I keep his advice in high regard: it is
essential to be ceaselessly vigilant…because of the greatly enlarged
sphere of our activities.
In fact, when the great philosopher Shri Aurobindo says: The truth
sits veiled behind the appearance, selfabsorbed; there is in all
things, without exception, “That which is conscious in these conscious
& unconscious existences, that which is awake in those who sleep”, we
are instantly reminded of our conviction about the consciousness that
we must possess while carrying out our professional responsibilities.
He informs us about the weaknesses of human beings that we may be a
reasoning animal, but our conclusions spring from our preferences,
prejudices and passions. It is, therefore, necessary for us to rise
above these preferences, prejudices and passions and come up to the
expectations of our time.
We need to be quite watchful about the way we conduct ourselves in
profession so that we could augment the public trust in the profession
and its performance. Moreover, the profession now needs to be more and
more communicative to the public about its roles, duties and
responsibilities in the national economy, and members of the
profession need to be in strict compliance with the existing Code of
Ethics, so that the gap between our image and identity gets reduced.
Our motto that we have to be awake in those who sleep becomes quite
functional in this context, as it demands us to update our technical
skills and develop the scope of auditing processes. We must continue
our professional journey on this note with a vigilant attitude.
Let me update our stakeholders now with some recent and important
developments in the profession that have taken place in the past one
month:
International Initiatives
IFAC Council and Edinburgh Group Meetings and ICAI Nominees in IFAC: I
attended the IFAC events in Berlin, Germany, recently along with the
Vice-President CA. Jaydeep N. Shah, and Additional Secretary of the
ICAI. I take pride to inform our stakeholders that our Institute has
been able to retain its Board position at the IFAC. My candidature as
Board member of IFAC was approved by the Nominating Committee after a
detailed interview and was ratified by the IFAC Board as well. The
matter, however, came up for election at the recently concluded IFAC
Council meeting, wherein out of seven candidates I secured the highest
number of affirmative preferences. The Board position to ICAI is a
testimony to our growing stature amongst the global accounting
fraternity and the international forums and the role played by ICAI in
the India’s economic momentum. I also feel satisfied to acknowledge
that another ICAI nominee, my colleague and ICAI Vice- President CA.
Jaydeep N. Shah has been nominated to the International Accounting
Education Standards Board (IAESB) of IFAC. Coinciding with the IFAC
events, the Edinburgh Group meeting was also held, focusing on SMP
issues. IFAC events provided an apt forum to the ICAI functionaries to
discuss our various initiatives with the global accounting bodies.
Visit of IAASB Chairman and IAASB Executive Director: Recently, Prof.
Arnold Schilder, Chairman, International Auditing & Assurance
Standards Board (IAASB) and Mr. Jim Sylph, Executive Director,
Professional Standards, IAASB visited India. During the visit, the
IAASB delegation interacted with regulatory bodies like RBI, SEBI,
C&AG, MCA and the ICAI on various issues, including recent global
financial crisis and the auditing profession, quality of audits,
convergence with international auditing standards, issues relating to
auditing standards in India, perspective of the various regulators on
the expectations of the stakeholders from auditors, how the regulators
and the auditing profession can work together towards a more resilient
world economy and protection of the investors. In particular, the
delegation met the Minister of Corporate Affairs Dr. M. Veerappa
Moily, MCA Secretary Shri Naved Masood and Deputy C&AG Shri A. K.
Awasthi to discuss the issues of mutual interests. The IAASB
delegation also interacted with the members of the Auditing and
Assurance Standards Board of ICAI at the meeting of the Board held on
22nd November, 2011 at New Delhi.
As a part of the Institute’s initiatives to create more awareness
among the members about Standards on Audit, to encourage their
compliance and implementation, the first phase of e-learning on
Standards on Audit was launched by the IAASB delegation, comprising
ten standards. Work on developing e-learning on the remaining
standards is in full swing. We also released three publications,
“Handbook of Auditing Pronouncements 2011 Edition”, “Guidance Note on
Certification of XBRL Financial Statements” and “Guide to Audit of
Complex Financial Instruments”, during the visit of the IAASB
delegation.
ICAI Representation in XBRL International: I am pleased to inform you
that ICAI Vice-President CA. Jaydeep N. Shah has been appointed a
member of the Nominations Committee of XBRL International, while my
Central Council colleagues, CA. Abhijit Bandyopadhyay and CA. K. Raghu
have been appointed members of the Finance and Human Resource
Committee, and the Membership Development Committee of XBRL
International respectively. The aforementioned positions have been
decided by the Member Assembly of XBRL International at its
International Conference held in October 2011. Decision regarding the
other two nominations of the ICAI is likely to be taken hopefully in
December 2011. Here I also wish to inform you that XBRL initiatives of
the ICAI will be showcased in a big way at our forthcoming
International Conference.
SAFA-EFAA Joint Initiative: I am happy to inform that the South Asian
Federation of Accountants (SAFA) representing accountancy in the SAARC
region and European Federation of Accountants and Auditors (EFAA)
representing SMPs of the Europe have decided to come together to share
their expertise for the benefit of SMPs of both the regions. A two-day
joint Seminar on SAFA-EFAA Alliance was organised recently in New
Delhi, where the MoU between SAFA and EFAA was signed in the august
presence of Hon’ble Secretary, Ministry of Corporate Affairs, Shri
Naved Masood, with an objective to create a common platform for
sharing knowledge resources for the benefit of SMPs and help the
members of both the regions for establishing a professional network.
Capacity-Building in Maldives: I take pride in informing you that the
Research and Information System (RIS) for Developing Countries, an
autonomous research institution established and funded by the Ministry
of External Affairs, has approached us and requested us to provide
capacity-building programmes for accounting technicians in Maldives.
It is important to mention that the Government of India is extending a
full-stage services and technology cooperation facility arrangement to
the Government of Maldives. In this regard, I called on the Chairman
of RIS, Mr. Shyam Saran, former Foreign Secretary, recently and had
discussions on our proposed arrangement which could be offered to the
relevant stakeholders in Maldives. It was also discussed that these
programmes would have an interface and, for this, option of running a
part of these courses in India through our Centre of Excellence, etc.,
would also be explored. We have asked the RIS to indicate the nodal
point for recipients of these services, so that focused discussions
could be held.
Submission of Report on Admitting Membership of Overseas Citizens of
India: A group had been constituted under the convenorship of my
Central Council colleague CA. Sanjay K. Agarwal to consider
appropriate steps for identifying a qualification-bridging mechanism
in line with the arrangements in place for MoU/MRAs with various
international accounting bodies and feasibility of considering
provision to be prescribed for admitting membership of overseas
citizens of India and to work out the modalities. I would like to
inform that the said group has completed its task and its report has
been submitted.
Application of the definition of ‘financial liability’ in IAS 32 to
FCCBs: In a meeting of our Accounting Standards Board held recently in
Mumbai, IASB member CA. Prabhakar Kalavacherla was invited for a
discussion on the carve-outs made in Indian Accounting Standards (Ind
AS). He suggested that India would meet greater success in getting its
point of view accepted by the IASB if it prioritises the issues to be
taken up at a time with the IASB rather than taking all issues at the
same time. It was, accordingly, suggested to first send the issue
regarding application of the definition of ‘financial liability’ to
Foreign Currency Convertible Bonds (FCCBs), to the IFRS Interpretation
Committee so that the amendment made by India in the definition as
presently done in Ind AS 32, Financial Instruments: Presentation,
could be avoided. Further, for greater effectiveness, other carve outs
such as that related to giving an option to defer foreign currency
gains and losses in respect of long term foreign currency items as
provided in Ind AS 21, The Effects of Changes in Foreign Exchange
Rates, can be taken up along with other countries such as South Korea.
The Accounting Standards Board is examining the suggestions made at
the meeting.
Towards Constitution of Working Groups of AOSSG: A teleconference of
the Working Group of AOSSG on the proposed limited revisions to IAS
41, on Agriculture, regarding scoping out Bearer Biological Assets
(BBAs) out of IAS 41 and scoping the same in IAS 16, Property, Plant
and Equipment, was held recently leading to another teleconference
between India, Malaysia, and Japan, during which it was suggested
that, in the Issues Paper on Agriculture to be sent to the IASB, two
paragraphs on alternative Indian approach should be included, and that
a covering letter should be written by the AOSSG to the IASB Chairman
in this regard. Accordingly, a letter has been sent to the IASB.
Another teleconference was held to discuss India’s suggestion to
constitute Working Groups of AOSSG on Rate Regulated Activities and
Extractive Activities, where India, Japan and Australia participated
and decided to initially constitute taskforces instead of the working
groups to carry out research by the interested countries in the AOSSG
region. Thereafter, the taskforces can be upgraded to working groups
on requirement basis. For this purpose, India would take a lead in the
taskforces and few other countries are being identified to join in
this endeavour.
Strengthening Ties
Meeting with Minister of State: Recently I, along with ICAI
Vice-President, met Shri V. Narayanaswamy, Minister of State in the
Ministry of Personnel, Public Grievances & Pension, and Prime
Minister’s Office. We apprised him of the activities of the Institute
and its role in development of accountancy profession in India and
globally, and also invited him for our International Conference to be
held shortly.
Meeting with President ITAT: I met the recentlyelected President of
Income Tax Appellate Tribunal (ITAT), Shri G. E. Veerabhadrappa, and
congratulated him on assuming new office. On this platform, I would
like to acknowledge before our accounting fraternity and congratulate
Shri Veerbhadrappa, also our member, for bringing yet another glory to
our profession in public service of our nation.
Meeting with CBEC Chairman: I also had an opportunity to meet the
Central Board of Excise & Customs Chairman, Shri S. K. Goel, recently
along with the ICAI Vice-President CA. Jaydeep N. Shah and my Central
Council colleague CA. Bhavna Doshi.
Initiatives towards Nation-Building
BANCON 2011 in Chennai: I am pleased to inform that I recently
attended the annual bankers’ conference BANCON 2011 – Gateway to a
Defining Decade on the theme Catalysing economic growth by unlocking
financial savings, successfully and jointly organised by Indian
Overseas Bank and Indian Banks’ Association in Chennai. I addressed
the august audience on the topic Capturing Opportunities in India’s
Gen Next. On the sidelines of the conference, I also interacted with
many bankers and the officials of the RBI highlighting the active role
that we chartered accountants can play in banking sector in particular
and national economy in general.
Awareness Programmes on Challenges in Public Finance & Government
Accounting: I am happy to acknowledge that we are organising awareness
programmes on Rising to the Challenges in Public Finance & Government
Accounting to identify opportunities for our members in public finance
and Government accounting, to assist in developing public finance
structure and to ensure appropriate sectoral allocation for inclusive
growth and economic development. We have organised such programmes in
Dehradun, Ghaziabad and Noida, where eminent faculties exchanged their
views on amendments of service tax, problems of indirect taxation,
wealth tax policy, taxation of real estate transaction, XBRL, among
others, with the participants.
MSHRC Request for Training in Accounts & Finance: It is satisfying to
inform that Shri Mafiul Hussain, Secretary, Maharashtra State Human
Rights Commission (MSHRC), recently met my Central Council colleague
CA. Anuj Goyal in Mumbai with regard to a proposal from MSHRC
requesting to avail our services for capacity building of his
officials in maintenance of accounts and improving the financial
discipline of the Commission.
Professional Developments
Meeting with Secretary, Financial Services, Ministry of Finance: I had
an opportunity to meet Shri D.K. Mittal, Secretary, Department of
Financial Services, Ministry of Finance, recently along with the ICAI
past-President and Chairman of Professional Development Committee CA.
Amarjit Chopra wherein we discussed various issues of mutual
professional interest. In respect of the issue of managerial autonomy
given to Boards of the public-sector banks for appointment of
auditors, I would like to inform that the Reserve Bank of India has
gone ahead with the Roadmap and as suggested therein, the complete
list of eligible Central Statutory Auditors has been sent to banks for
the purpose. We are in the process of making suitable representations
in this regard.
Towards a Crusade for Spreading Ethics in Profession: We have been
constantly engaged in spreading awareness about the Code of Ethics and
preparing ways to familiarise our members with it across the nation.
We have been holding programmes, seminars and workshops on various
ethical subjects for the members, and we ensure that all
Branches/Regional Councils hold at least one such programme in a
quarter, i.e. four in a year. So far, 28 programmes have been
conducted in the current year. Further, we have also introduced a
regular column on Ethics, Know Your Ethics, in our journal.
Guidelines on Conversion to LLPs: As per the recent Council decisions,
guidelines for conversion of CA firms into LLPs and constitution of
separate LLPs by the practicing chartered accountants have been
finalised which are applicable for conversion of CA firms into LLPs or
formation of new LLPs by the members-in-practice of the Institute
subject to the provisions of the Limited Liability Partnership (LLP)
Act, 2008 and Rules & Regulations framed there under. These guidelines
came into effect from 4th November, 2011, and will certainly help the
members and CA firms for conversion/formation of LLPs and rendering
professional services through LLP Model. The said guidelines are
available on the website of the Institute and have been published in
this issue of the Journal. The name of the LLP shall be approved by
the Registrar for LLP and after issuance of certificate of
incorporation of LLP by the Registrar for LLP, the LLP name will be
required to be registered with the ICAI like registration of firms
with ICAI.
Filings of Financial Statements in XBRL: As you are kindly aware that
the Ministry of Corporate Affairs has switched from normal e-filings
to XBRLfilings of financial statements for a certain class of
companies from this year. The filings in XBRL mode have started and
the due date is 30th November, or, 60 days from the due date whichever
is later. I urge the members of profession to complete the
certification of their corporate clients at the earliest, so that the
filings can be made by the due date.
ICAI Awards for Excellence in Financial Reporting: For the annual
competition ICAI Awards for Excellence in Financial Reporting, this
year, a record number of about 225 entities have participated in
various categories. As per the procedure, these entities pass through
a robust three-tier evaluation process, i.e. evaluation of annual
reports on the basis of compliance with accounting standards and
relevant applicable laws, etc., evaluation by the Shield Panel and,
eventually, that by an independent jury.
Christ University Offers MPhil/PhD: I am quite happy to inform you
that the Christ University, Bangalore, has approved the eligibility of
our members to pursue the MPhil/PhD programme in its disciplines of
Commerce and Management that include interdisciplinary areas, subject
to MPhil/ PhD regulations of the University.
Support CABF Initiative: This is my appeal to all my stakeholders to
come actively forward to support and contribute to the CABF (Chartered
Accountants Benevolent Fund) initiative of the Institute towards the
cause of the profession and its members. It provides financial
assistance to our members in distress for fundamental needs including
sustenance. You should know that contributions to CABF are exempted
under Section 80(G) of the Income-tax Act, 1961.
Infrastructure Initiatives
Auditorium Inaugurated in Bhilai: I recently inaugurated an auditorium
at our Bhilai Branch with a capacity for 225 persons and complete
soundand echo-proof interior with WiFi. It is a matter of pride for us
that this auditorium is currently one of the biggest auditoriums in
the state of Chattisgarh.
Initiatives for Students
Best Wishes to All 2.5 Lakh Students: About 2.5 lakh students (83000,
131000 and 36000 students for Final Examinations, IPC Examinations and
PC Examinations respectively) have appeared in the Institute’s
November 2011 Chartered Accountants Examinations at 345 centres
including three centres abroad. All the examinations were conducted
without any inconvenience or issue. The Examination Department is
fully geared up to evaluate the answer books and declare the results
in time. I wish all students would pass the examination with flying
colours.
Recommendations for Amendment of Regulation 28E(1)(b): It has also
been decided to recommend for amendment of Regulation 28E(1)(b),
whereby the study for IPCC would be reduced from existing nine months
to eight months to make candidates eligible to appear in the
Integrated Professional Competence Examination (IPCE) from the date of
Registration for IPCC.
Review of CA Syllabus: We have taken a muchdesired initiative and
formed a Committee as per direction of the Council to review
comprehensively our syllabus for CA course curriculum that has not
been undertaken since 2006.
Orientation Content for GMCS I & II: We recently deliberated on the
proposed contents of Orientation Programme for GMCS-I and GMCS-II and
finalised the same. All the necessary initiatives have been taken to
prepare the course material for these courses along with a trainer’s
manual as soon as possible.
Winter is a time for making new promises and finding wayss of keeping
up the old ones. We get more time for ourselves in this season.
American author Ruth Stout had said: …only in the winter…can you have
longer, quiet stretches when you can savor belonging to yourself. I
realise, all of us feel that it also is time for creating comfort and
warmth for our friends, family and loved ones.
However, I do realise that concerns of the impoverished of our nation,
who are in dire need of resources during winters for survival, must be
first on our agenda. We come across numerous incidents how the crises
strike these citizens across the nation during winters. According to a
Japanese proverb, one kind word can warm three winter months. Think,
then, what one kind act can do. For example, in the beginning of
winters, we normally discard our old winter clothes. This time, we can
hand over those clothes in person to the people on pavements. This
gesture of ours will generate warmth literally as well as
metaphorically for those fellow citizens. We must do something for our
fellow citizens being on the stronger side of our society. This will
be our return against our social debt to society. Such acts make our
society capable, happy and warm.
When it is summer, we want rainy season to arrive. When we get bored
of the rainy days, we want them to be over. In the peak winter, we
yearn for spring. Actually we start missing whatever we lose; we love
to have whatever is not with us. This is a basic human instinct.
Weather in itself is a lesson, i.e. we should learn from our past,
face our present and prepare ourselves for future. I would like to
recall the beautiful inspiring lines written by the English poet P. B.
Shelley, which exude hope and trust: …O, wind, If Winter comes, can
Spring be far behind?
While we leave our fate to the time to be positive and bright, we can
be tough on ourselves to turn our fate positive and bright for the
society we live in.
May we all stakeholders of the profession join hands in this mission!
Best wishes
CA. G. Ramaswamy
President, ICAI
--------------------------------------------------------------------------------
Dear Friends,
While presenting the Annual Budget for 1956-1957, the then Union
Finance Minister Shri C. D. Deshmukh had said: It is enough to state
broadly my view that by means of the First Five Year Plan we have laid
sound foundations for a more massive superstructure in building up the
country’s economy. He went on to present the vision of his mission
which is relevant even today: The problem is not merely one of raising
the statistical average of per capita incomes which could easily be a
will of the wisp; it is one of raising the lowest incomes and of
opening out to the younger generation avenues of growth and
advancement that will bring out the best in them. For this, the
present generation has to make sacrifices. It has to work harder and
it has to abstain from asking for immediate returns. He always
considered our profession a Public Service. He had advised us to
follow high ideals amidst an abundance of pressures and temptations,
besides carrying out our statutory responsibilities to report on
accounts to the shareholders. I keep his advice in high regard: it is
essential to be ceaselessly vigilant…because of the greatly enlarged
sphere of our activities.
In fact, when the great philosopher Shri Aurobindo says: The truth
sits veiled behind the appearance, selfabsorbed; there is in all
things, without exception, “That which is conscious in these conscious
& unconscious existences, that which is awake in those who sleep”, we
are instantly reminded of our conviction about the consciousness that
we must possess while carrying out our professional responsibilities.
He informs us about the weaknesses of human beings that we may be a
reasoning animal, but our conclusions spring from our preferences,
prejudices and passions. It is, therefore, necessary for us to rise
above these preferences, prejudices and passions and come up to the
expectations of our time.
We need to be quite watchful about the way we conduct ourselves in
profession so that we could augment the public trust in the profession
and its performance. Moreover, the profession now needs to be more and
more communicative to the public about its roles, duties and
responsibilities in the national economy, and members of the
profession need to be in strict compliance with the existing Code of
Ethics, so that the gap between our image and identity gets reduced.
Our motto that we have to be awake in those who sleep becomes quite
functional in this context, as it demands us to update our technical
skills and develop the scope of auditing processes. We must continue
our professional journey on this note with a vigilant attitude.
Let me update our stakeholders now with some recent and important
developments in the profession that have taken place in the past one
month:
International Initiatives
IFAC Council and Edinburgh Group Meetings and ICAI Nominees in IFAC: I
attended the IFAC events in Berlin, Germany, recently along with the
Vice-President CA. Jaydeep N. Shah, and Additional Secretary of the
ICAI. I take pride to inform our stakeholders that our Institute has
been able to retain its Board position at the IFAC. My candidature as
Board member of IFAC was approved by the Nominating Committee after a
detailed interview and was ratified by the IFAC Board as well. The
matter, however, came up for election at the recently concluded IFAC
Council meeting, wherein out of seven candidates I secured the highest
number of affirmative preferences. The Board position to ICAI is a
testimony to our growing stature amongst the global accounting
fraternity and the international forums and the role played by ICAI in
the India’s economic momentum. I also feel satisfied to acknowledge
that another ICAI nominee, my colleague and ICAI Vice- President CA.
Jaydeep N. Shah has been nominated to the International Accounting
Education Standards Board (IAESB) of IFAC. Coinciding with the IFAC
events, the Edinburgh Group meeting was also held, focusing on SMP
issues. IFAC events provided an apt forum to the ICAI functionaries to
discuss our various initiatives with the global accounting bodies.
Visit of IAASB Chairman and IAASB Executive Director: Recently, Prof.
Arnold Schilder, Chairman, International Auditing & Assurance
Standards Board (IAASB) and Mr. Jim Sylph, Executive Director,
Professional Standards, IAASB visited India. During the visit, the
IAASB delegation interacted with regulatory bodies like RBI, SEBI,
C&AG, MCA and the ICAI on various issues, including recent global
financial crisis and the auditing profession, quality of audits,
convergence with international auditing standards, issues relating to
auditing standards in India, perspective of the various regulators on
the expectations of the stakeholders from auditors, how the regulators
and the auditing profession can work together towards a more resilient
world economy and protection of the investors. In particular, the
delegation met the Minister of Corporate Affairs Dr. M. Veerappa
Moily, MCA Secretary Shri Naved Masood and Deputy C&AG Shri A. K.
Awasthi to discuss the issues of mutual interests. The IAASB
delegation also interacted with the members of the Auditing and
Assurance Standards Board of ICAI at the meeting of the Board held on
22nd November, 2011 at New Delhi.
As a part of the Institute’s initiatives to create more awareness
among the members about Standards on Audit, to encourage their
compliance and implementation, the first phase of e-learning on
Standards on Audit was launched by the IAASB delegation, comprising
ten standards. Work on developing e-learning on the remaining
standards is in full swing. We also released three publications,
“Handbook of Auditing Pronouncements 2011 Edition”, “Guidance Note on
Certification of XBRL Financial Statements” and “Guide to Audit of
Complex Financial Instruments”, during the visit of the IAASB
delegation.
ICAI Representation in XBRL International: I am pleased to inform you
that ICAI Vice-President CA. Jaydeep N. Shah has been appointed a
member of the Nominations Committee of XBRL International, while my
Central Council colleagues, CA. Abhijit Bandyopadhyay and CA. K. Raghu
have been appointed members of the Finance and Human Resource
Committee, and the Membership Development Committee of XBRL
International respectively. The aforementioned positions have been
decided by the Member Assembly of XBRL International at its
International Conference held in October 2011. Decision regarding the
other two nominations of the ICAI is likely to be taken hopefully in
December 2011. Here I also wish to inform you that XBRL initiatives of
the ICAI will be showcased in a big way at our forthcoming
International Conference.
SAFA-EFAA Joint Initiative: I am happy to inform that the South Asian
Federation of Accountants (SAFA) representing accountancy in the SAARC
region and European Federation of Accountants and Auditors (EFAA)
representing SMPs of the Europe have decided to come together to share
their expertise for the benefit of SMPs of both the regions. A two-day
joint Seminar on SAFA-EFAA Alliance was organised recently in New
Delhi, where the MoU between SAFA and EFAA was signed in the august
presence of Hon’ble Secretary, Ministry of Corporate Affairs, Shri
Naved Masood, with an objective to create a common platform for
sharing knowledge resources for the benefit of SMPs and help the
members of both the regions for establishing a professional network.
Capacity-Building in Maldives: I take pride in informing you that the
Research and Information System (RIS) for Developing Countries, an
autonomous research institution established and funded by the Ministry
of External Affairs, has approached us and requested us to provide
capacity-building programmes for accounting technicians in Maldives.
It is important to mention that the Government of India is extending a
full-stage services and technology cooperation facility arrangement to
the Government of Maldives. In this regard, I called on the Chairman
of RIS, Mr. Shyam Saran, former Foreign Secretary, recently and had
discussions on our proposed arrangement which could be offered to the
relevant stakeholders in Maldives. It was also discussed that these
programmes would have an interface and, for this, option of running a
part of these courses in India through our Centre of Excellence, etc.,
would also be explored. We have asked the RIS to indicate the nodal
point for recipients of these services, so that focused discussions
could be held.
Submission of Report on Admitting Membership of Overseas Citizens of
India: A group had been constituted under the convenorship of my
Central Council colleague CA. Sanjay K. Agarwal to consider
appropriate steps for identifying a qualification-bridging mechanism
in line with the arrangements in place for MoU/MRAs with various
international accounting bodies and feasibility of considering
provision to be prescribed for admitting membership of overseas
citizens of India and to work out the modalities. I would like to
inform that the said group has completed its task and its report has
been submitted.
Application of the definition of ‘financial liability’ in IAS 32 to
FCCBs: In a meeting of our Accounting Standards Board held recently in
Mumbai, IASB member CA. Prabhakar Kalavacherla was invited for a
discussion on the carve-outs made in Indian Accounting Standards (Ind
AS). He suggested that India would meet greater success in getting its
point of view accepted by the IASB if it prioritises the issues to be
taken up at a time with the IASB rather than taking all issues at the
same time. It was, accordingly, suggested to first send the issue
regarding application of the definition of ‘financial liability’ to
Foreign Currency Convertible Bonds (FCCBs), to the IFRS Interpretation
Committee so that the amendment made by India in the definition as
presently done in Ind AS 32, Financial Instruments: Presentation,
could be avoided. Further, for greater effectiveness, other carve outs
such as that related to giving an option to defer foreign currency
gains and losses in respect of long term foreign currency items as
provided in Ind AS 21, The Effects of Changes in Foreign Exchange
Rates, can be taken up along with other countries such as South Korea.
The Accounting Standards Board is examining the suggestions made at
the meeting.
Towards Constitution of Working Groups of AOSSG: A teleconference of
the Working Group of AOSSG on the proposed limited revisions to IAS
41, on Agriculture, regarding scoping out Bearer Biological Assets
(BBAs) out of IAS 41 and scoping the same in IAS 16, Property, Plant
and Equipment, was held recently leading to another teleconference
between India, Malaysia, and Japan, during which it was suggested
that, in the Issues Paper on Agriculture to be sent to the IASB, two
paragraphs on alternative Indian approach should be included, and that
a covering letter should be written by the AOSSG to the IASB Chairman
in this regard. Accordingly, a letter has been sent to the IASB.
Another teleconference was held to discuss India’s suggestion to
constitute Working Groups of AOSSG on Rate Regulated Activities and
Extractive Activities, where India, Japan and Australia participated
and decided to initially constitute taskforces instead of the working
groups to carry out research by the interested countries in the AOSSG
region. Thereafter, the taskforces can be upgraded to working groups
on requirement basis. For this purpose, India would take a lead in the
taskforces and few other countries are being identified to join in
this endeavour.
Strengthening Ties
Meeting with Minister of State: Recently I, along with ICAI
Vice-President, met Shri V. Narayanaswamy, Minister of State in the
Ministry of Personnel, Public Grievances & Pension, and Prime
Minister’s Office. We apprised him of the activities of the Institute
and its role in development of accountancy profession in India and
globally, and also invited him for our International Conference to be
held shortly.
Meeting with President ITAT: I met the recentlyelected President of
Income Tax Appellate Tribunal (ITAT), Shri G. E. Veerabhadrappa, and
congratulated him on assuming new office. On this platform, I would
like to acknowledge before our accounting fraternity and congratulate
Shri Veerbhadrappa, also our member, for bringing yet another glory to
our profession in public service of our nation.
Meeting with CBEC Chairman: I also had an opportunity to meet the
Central Board of Excise & Customs Chairman, Shri S. K. Goel, recently
along with the ICAI Vice-President CA. Jaydeep N. Shah and my Central
Council colleague CA. Bhavna Doshi.
Initiatives towards Nation-Building
BANCON 2011 in Chennai: I am pleased to inform that I recently
attended the annual bankers’ conference BANCON 2011 – Gateway to a
Defining Decade on the theme Catalysing economic growth by unlocking
financial savings, successfully and jointly organised by Indian
Overseas Bank and Indian Banks’ Association in Chennai. I addressed
the august audience on the topic Capturing Opportunities in India’s
Gen Next. On the sidelines of the conference, I also interacted with
many bankers and the officials of the RBI highlighting the active role
that we chartered accountants can play in banking sector in particular
and national economy in general.
Awareness Programmes on Challenges in Public Finance & Government
Accounting: I am happy to acknowledge that we are organising awareness
programmes on Rising to the Challenges in Public Finance & Government
Accounting to identify opportunities for our members in public finance
and Government accounting, to assist in developing public finance
structure and to ensure appropriate sectoral allocation for inclusive
growth and economic development. We have organised such programmes in
Dehradun, Ghaziabad and Noida, where eminent faculties exchanged their
views on amendments of service tax, problems of indirect taxation,
wealth tax policy, taxation of real estate transaction, XBRL, among
others, with the participants.
MSHRC Request for Training in Accounts & Finance: It is satisfying to
inform that Shri Mafiul Hussain, Secretary, Maharashtra State Human
Rights Commission (MSHRC), recently met my Central Council colleague
CA. Anuj Goyal in Mumbai with regard to a proposal from MSHRC
requesting to avail our services for capacity building of his
officials in maintenance of accounts and improving the financial
discipline of the Commission.
Professional Developments
Meeting with Secretary, Financial Services, Ministry of Finance: I had
an opportunity to meet Shri D.K. Mittal, Secretary, Department of
Financial Services, Ministry of Finance, recently along with the ICAI
past-President and Chairman of Professional Development Committee CA.
Amarjit Chopra wherein we discussed various issues of mutual
professional interest. In respect of the issue of managerial autonomy
given to Boards of the public-sector banks for appointment of
auditors, I would like to inform that the Reserve Bank of India has
gone ahead with the Roadmap and as suggested therein, the complete
list of eligible Central Statutory Auditors has been sent to banks for
the purpose. We are in the process of making suitable representations
in this regard.
Towards a Crusade for Spreading Ethics in Profession: We have been
constantly engaged in spreading awareness about the Code of Ethics and
preparing ways to familiarise our members with it across the nation.
We have been holding programmes, seminars and workshops on various
ethical subjects for the members, and we ensure that all
Branches/Regional Councils hold at least one such programme in a
quarter, i.e. four in a year. So far, 28 programmes have been
conducted in the current year. Further, we have also introduced a
regular column on Ethics, Know Your Ethics, in our journal.
Guidelines on Conversion to LLPs: As per the recent Council decisions,
guidelines for conversion of CA firms into LLPs and constitution of
separate LLPs by the practicing chartered accountants have been
finalised which are applicable for conversion of CA firms into LLPs or
formation of new LLPs by the members-in-practice of the Institute
subject to the provisions of the Limited Liability Partnership (LLP)
Act, 2008 and Rules & Regulations framed there under. These guidelines
came into effect from 4th November, 2011, and will certainly help the
members and CA firms for conversion/formation of LLPs and rendering
professional services through LLP Model. The said guidelines are
available on the website of the Institute and have been published in
this issue of the Journal. The name of the LLP shall be approved by
the Registrar for LLP and after issuance of certificate of
incorporation of LLP by the Registrar for LLP, the LLP name will be
required to be registered with the ICAI like registration of firms
with ICAI.
Filings of Financial Statements in XBRL: As you are kindly aware that
the Ministry of Corporate Affairs has switched from normal e-filings
to XBRLfilings of financial statements for a certain class of
companies from this year. The filings in XBRL mode have started and
the due date is 30th November, or, 60 days from the due date whichever
is later. I urge the members of profession to complete the
certification of their corporate clients at the earliest, so that the
filings can be made by the due date.
ICAI Awards for Excellence in Financial Reporting: For the annual
competition ICAI Awards for Excellence in Financial Reporting, this
year, a record number of about 225 entities have participated in
various categories. As per the procedure, these entities pass through
a robust three-tier evaluation process, i.e. evaluation of annual
reports on the basis of compliance with accounting standards and
relevant applicable laws, etc., evaluation by the Shield Panel and,
eventually, that by an independent jury.
Christ University Offers MPhil/PhD: I am quite happy to inform you
that the Christ University, Bangalore, has approved the eligibility of
our members to pursue the MPhil/PhD programme in its disciplines of
Commerce and Management that include interdisciplinary areas, subject
to MPhil/ PhD regulations of the University.
Support CABF Initiative: This is my appeal to all my stakeholders to
come actively forward to support and contribute to the CABF (Chartered
Accountants Benevolent Fund) initiative of the Institute towards the
cause of the profession and its members. It provides financial
assistance to our members in distress for fundamental needs including
sustenance. You should know that contributions to CABF are exempted
under Section 80(G) of the Income-tax Act, 1961.
Infrastructure Initiatives
Auditorium Inaugurated in Bhilai: I recently inaugurated an auditorium
at our Bhilai Branch with a capacity for 225 persons and complete
soundand echo-proof interior with WiFi. It is a matter of pride for us
that this auditorium is currently one of the biggest auditoriums in
the state of Chattisgarh.
Initiatives for Students
Best Wishes to All 2.5 Lakh Students: About 2.5 lakh students (83000,
131000 and 36000 students for Final Examinations, IPC Examinations and
PC Examinations respectively) have appeared in the Institute’s
November 2011 Chartered Accountants Examinations at 345 centres
including three centres abroad. All the examinations were conducted
without any inconvenience or issue. The Examination Department is
fully geared up to evaluate the answer books and declare the results
in time. I wish all students would pass the examination with flying
colours.
Recommendations for Amendment of Regulation 28E(1)(b): It has also
been decided to recommend for amendment of Regulation 28E(1)(b),
whereby the study for IPCC would be reduced from existing nine months
to eight months to make candidates eligible to appear in the
Integrated Professional Competence Examination (IPCE) from the date of
Registration for IPCC.
Review of CA Syllabus: We have taken a muchdesired initiative and
formed a Committee as per direction of the Council to review
comprehensively our syllabus for CA course curriculum that has not
been undertaken since 2006.
Orientation Content for GMCS I & II: We recently deliberated on the
proposed contents of Orientation Programme for GMCS-I and GMCS-II and
finalised the same. All the necessary initiatives have been taken to
prepare the course material for these courses along with a trainer’s
manual as soon as possible.
Winter is a time for making new promises and finding wayss of keeping
up the old ones. We get more time for ourselves in this season.
American author Ruth Stout had said: …only in the winter…can you have
longer, quiet stretches when you can savor belonging to yourself. I
realise, all of us feel that it also is time for creating comfort and
warmth for our friends, family and loved ones.
However, I do realise that concerns of the impoverished of our nation,
who are in dire need of resources during winters for survival, must be
first on our agenda. We come across numerous incidents how the crises
strike these citizens across the nation during winters. According to a
Japanese proverb, one kind word can warm three winter months. Think,
then, what one kind act can do. For example, in the beginning of
winters, we normally discard our old winter clothes. This time, we can
hand over those clothes in person to the people on pavements. This
gesture of ours will generate warmth literally as well as
metaphorically for those fellow citizens. We must do something for our
fellow citizens being on the stronger side of our society. This will
be our return against our social debt to society. Such acts make our
society capable, happy and warm.
When it is summer, we want rainy season to arrive. When we get bored
of the rainy days, we want them to be over. In the peak winter, we
yearn for spring. Actually we start missing whatever we lose; we love
to have whatever is not with us. This is a basic human instinct.
Weather in itself is a lesson, i.e. we should learn from our past,
face our present and prepare ourselves for future. I would like to
recall the beautiful inspiring lines written by the English poet P. B.
Shelley, which exude hope and trust: …O, wind, If Winter comes, can
Spring be far behind?
While we leave our fate to the time to be positive and bright, we can
be tough on ourselves to turn our fate positive and bright for the
society we live in.
May we all stakeholders of the profession join hands in this mission!
Best wishes
CA. G. Ramaswamy
President, ICAI
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