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The Past Year was a good one: Accounting Profession
December, 27th 2010

The year 2009 was turned bad for the auditing and accounting profession due to the Satyam episode.

Although there was spill over, the year 2010 for the accounting profession was overall a very good year. The Institute of Chartered Accountants of India (ICAI) could complete its task of formulating new set of accounting standards, which are fully convergent with IFRS. There was no serious allegation against the Chartered Accountancy profession. Job opportunities for young chartered accountants were plenty. The Institute of Cost and Works Accountants (ICWAI) has also done a commendable job of issuing a significant number of cost acco-unting standards. It could improve its image in the public eye. We may hope that the year 2011 will be an excellent year for the accounting profession.

The present decade is challenging for the profession. Indias long-term growth prospect is encouraging but with a larger uncertainty band ahead. India can grow at 8 per cent or more. Conventional time series methods based on past data suggest a potential growth rate of 7.5-8 per cent for the Indian economy. However, the issue is how India can move to a 10 per cent growth trajectory ahead. We need to grow by 10 per cent for the next 20 years. Moreover, there is a need to achieve inclusive growth. Economists forecasts show that China and India will account for half of global growth from 2010-2020.

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