Proposal made to tackle the non-recognition of work accountants.
The Institute of Cost and Works Accountants of India (ICWAI) has presented a memorandum to the Ministry of Corporate Affairs requesting for a change in the name of the institute.
The name it has sought is Institute of Cost and Management Accountants of India. The memorandum was signed by the new as well as the old council.
The institute had made its first appeal for a name change in 1972. However, the demand gained momentum from 2003. The 12th report of the Standing Committee on Finance (2004-05) on the Cost and Works Accountants (Amendment) Bill, 2003 recommended the change of name but in 2005, a Group of Ministers decided to maintain status quo.
According to the ICWAI, the name change will give their students global recognition.
Works accountants are no longer recognised. Even the Institute of Cost and Works Accountants of England and Wales, in line with which our Institute was named, changed its name to Chartered Institute of Management Accountants. Under the WTO rules, we will be given a lower grade. In future, if foreign management accountants are allowed to practice in any country, our students will be at a loss, said Dhananjay V Joshi, president, ICWAI.
He added the strength of the institute was not increasing because of the degree losing importance in the present scenario.
The existing name will be a big hindrance for the professional members of management accounting in India in negotiating for mutual recognition agreements, explained Joshi.
The institute says it is meeting new challenges of the profession by updating the syllabus. Also, its members are already engaged in management audit for different functional areas for effective resource planning and control.
According to the institute, their demand is meeting stiff resistance from the Institute of Chartered Accountants of India (ICAI).
The ICAI continues to hold the position it held earlier and that there is no valid reason warranting any change in the step, said Ashok Haldia, secretary, ICAI.
According to ICAI, Parliament, while carving out the areas for respective professions, had left non-exclusive areas open to all.
Therefore, permitting the members of one discipline to exclusively use the designation management accountant as part of their name would lend statutory support to an incorrect assertion.