ICAI proposes to come up with newer accounting standards
July, 12th 2006
The institute feels the need to support the cause of small and medium enterprises, many of which have gained great significance in recent years. Independent directors must play key role, says chief
The Institute of Chartered Accountants of India (ICAI) has proposed to come up with newer accounting standards, covering miscellaneous issues, in order to be in sync with what is being practised internationally.
A number of accounting standards are already in place while efforts are on to include other critical topics within their fold.
The ICAI, given this backdrop, is looking forward to add to few more to its suite of standards in the foreseeable future.
The ICAI, according to the President, Mr T.N. Manoharan, is of the view that independent directors will soon have to play a greater role in the working of companies. Chartered accountants are quite capable of taking up mandates as independent board members, he said. The institute has on another front feels the need to support the cause of small and medium enterprises (SMEs), many of which have gained great significance in recent years.
Support for SMEs
The SME category, it has pointed out, is growing in stature and has started contributing more to the aggregate wealth being generated in the country.
Meanwhile, the International Federation of Accountants (IFAC) has also proposed to encourage these entities, it is mentioned.
It is further felt that small and medium practices face definite challenges while applying international standards to the audits of SMEs.
The Board of IFAC had recently cleared a programme aimed at providing guidance material for use in SME audits.
The latest guidance (expected to be based on the international standards) is likely to comeinto being by end-December.
Internationally, there is a renewed thrust on SMEs, the institute, which on Friday organised a two-day conference on corporate governance in Kolkata, has noted, adding that efforts are on to nurture these enterprises.
While the same is broadly true for India as well, critical issues such as corporate governance and risk management are becoming more important for local SMEs.
Among the proposals being weighed by the chartered accountants' organisation is one that relates to provision of greater recognition to those who have passed the inter test.