CAs allowed to practice in corporate form of Management Consultancy

Bangalore, Aug 7 (UNI) The Institute of Chartered Accountants of India (ICAI) has relaxed restrictions to enable practising Chartered Accountants (CAs) to occupy the post of Managing Director or a whole time Director of a corporate after obtaining specific and prior approval from it in each case.

Briefing newspersons here, ICAI President T N Manoharan said the conditions were relaxed with a view to empower the members to practice in corporate form in management consultancy field. As per the existing Regulations and Code of Ethics, a practicing CA could be a Director Simplicitor in any company. Relevant guidelines would be formulated and released soon for compliance by the members, he added.

To a question, he said the ICAI would introduce a new curriculum, updating its syllabi, scheme of education and training of CA students in consonance with the international educational trend, government, business and societal demand. As against the existing course duration of five years and three months, the new course, with more stress on practical training, would be completed in four years and the students would have to register for objective type Common Proficiency Test at any time after passing tenth standard and appear for exam after completing 12th standard.

Mr Manoharan said every year about 7500 students qualified as CAs. While 6000 of them joined various corporate services, the remaining 1500 opted for pursuing professional practice. In campus interviews held recently, freshers had been able to get good pay ranging from Rs four lakh to Rs six lakh per annum. Nonetheless, there was an acute shortage of accounting professionals in India as well as the rest of the world. The institute needed at least another 20,000 CAs to fill the gap.

He said to recognise the need to harmonise and improve accounting and financial reporting among local bodies, the ICAI had constituted an independent committee on Accounting Standards for Local Bodies. The committee had finalised a draft preface to the statements on Accounting Standards for Local Bodies that would set out objectives and operating procedures of the committee and explain the scope and authority of the Accounting Standards for Local Bodies.

After receiving the report, the Union Urban Development Ministry would recommend the accounting standards for local bodies, issued by ICAI, for acceptance by state governments, he added.

UNI SR RG TS1550