Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: cpt :: VAT RATES :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: articles on VAT and GST in India :: empanelment :: TDS :: VAT Audit :: due date for vat payment :: form 3cd :: ACCOUNTING STANDARDS
« News Headlines »
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout
 Income-tax (27th Amendment) Rules, 2016 - 92/2016

Management accounting gaining importance in the era of globalisation
April, 21st 2012

Fazlur Rehman Khan, Dhaka-born, Chicago-bred structural engineering wiz, is the exception that proves the rule when it comes to buildings: the rule is, the world knows the architect behind the imposing design and dazzling facade of famous buildings while the structural engineer who makes the design a viable reality remains anonymous.

Cost and management accountants are to businesses what structural engineers are to buildings. They produce the chunks of information that allow companies to turn in performance that fetches their top management fat bonuses, but these accountants themselves remain below the radar for the most part.

Even the name of their professional organisation tends to diffuse, rather than sharpen, their identity. Ask anyone what ICAI stands for, and the answer would be, the Institute of Chartered Accountants of India. Well, it is. But it also is the Institute of Cost Accountants of India.

Formerly known as the Institute of Cost and Works Accountants of India, the institute sought to change its official name to the Institute of Cost and Management Accountants of India. This met with objection from the Institute of Chartered Accountants. So, the government dropped the outdated term Works from the institute's name and created a second ICAI.

Some day, hopes the current president of the IC(ost)AI, M Gopalakrishnan, the institute would formally add Management to its name, mirroring the nomenclature his counterparts follow in other countries. But then, as lovelorn Juliet said, what's in a name? Cost accountancy does the solid work of generating, assembling and making sense of the information that companies need about their own working to take intelligent decisions.

As the Indian economy grows, forms more and more companies, and all of them compete with companies from around the world even for a share of the domestic market, the need for intelligent decisions based on thorough knowledge of their own internal working can only increase. And that is why the institute has 50,000 members and oversees the training and qualification of 4,00,000 students who aspire to become members.

Time was when cost accountants were required as essential staff to meet compliance requirements. The government requires companies in eight sectors - telecom, electricity, fertilisers, cement, sugar, petroleum and chemicals including bulk drugs and formulations - to prepare cost audits.

Companies hired cost accountants to prepare these statements. And the vast majority of qualified cost accountants work in the finance wings of companies as employees. But the times are changing. Increasingly, cost audits are inputs to achieving excellence: in management practices, in financial results, in meeting rising shareholder and consumer expectations of respect for the environment and for corporate governance.

Mr Gopalakrishnan is proud of the institute's 28,000-sq-ft centre of excellence at Hyderabad, which periodically trains people in new concepts and established procedure. He stresses that management accounting is gaining importance in the era of globalisation.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions