New Delhi, January 07: The three-day ‘International Conference on Accountancy Profession: Catalyst to Sustained Economic Growth’ concluded here today with the signing of a Joint Declaration between the Institute of Chartered Accountants of India (ICAI) and the Association of International Accountants, UK (AIA).
It was signed by ICAI President Amarjit Chopra and M. S. Khare on behalf of the AIA. The joint declaration is prepared to benefit Chartered Accountants as well as the students who pursue the chartered accountancy course.
An honorary membership of the AIA was also conferred upon the President of the ICAI on the occasion.
A number of sessions were organized by the ICAI during the three-day conference that began on January 4. The highlight of the session on Economic Resilience through Good Governance was the views expressed by Vinod Rai, Comptroller and Auditor General (CAG) of India. He stressed upon the importance of good governance in any structure, be it government or corporate sector.
The CAG also emphasized that good governance is dependent upon solid foundation of systems, procedures and processes that need to be in place and should not in any way be tinkered with.
Stating that India could withstand financial shocks, he added that it is time for introspection and understanding whether the economic growth will take place under stress or on sustainable basis.
During the session on the 21st Century Accountant, Prabhakar Kalavacherla, Board Member of the International Accounting Standard Board (IASB), talked about steps that have been taken for harmonization by the IASB which has gained momentum during the last 6 years.
He said that 120 countries are basing their standards on IFRS. He further stated that USA and IASB have jointly signed memorandums of understanding to work on several accounting standards and this MoU will end in 2011.
Kalavacherla said that capital market have become global, economies are interconnected, accountants and auditors need high quality standards, therefore conferences like the one organized by ICAI are essential.
In the session on Emerging Avenues for Profession, Planning Commission member Arun Maira stated that the accounting profession plays a vital role in good governance of society. He said that governance keeps together everybody in harmony and many diverse forces together and for achieving good governance, guidance is a key factor.
In the session on ‘Convergence with IFRS: Issues & Challenges’, held on the concluding day today, National Advisory Committee on Accounting Standards Chairman Y. H. Malegam brought out various issues and challenges in convergence. He brought out the rationale for convergence rather than adoption in the country.
He also mentioned that there are a few carve outs which are taken up with IASB. “Subject to these few carve outs, the standards are almost fully convergent,” Malegam said.
In the session ‘Bridging expectation gap – Post Satyam fiasco’, ICAI President Amarjit Chopra said, “Satyam is not a failure on the part of auditors but is a result of total failure of corporate governance.”
Focusing on the role of Independent Directors, Chairman of audit committee, existing procedures of external confirmations, auditing and assurance norms, he emphasized that all these should be thoroughly reviewed.
–Agencies