This is part 5 of the topic Professional Body and Professionalism by CMA B V Prabhakar. He discusses on how accounting bodies IMA-USA, ICWAI-INDIA & ICSI-INDIA apply the above principles.
STATEMENTS ON STANDARD AUDITING PRACTICES
They become mandatory on the dates specified in the respective document or notified by the Council.
Cost Accounting Standards (CAS)
The Cost Accounting Standards are issued for use in the presentation of Cost statements. They become mandatory on the dates specified in the respective Accounting Standards or notified by the Council in this behalf.
Every Cost Statement shall comply with the cost accounting standards.
Where the Cost Statements of the company do not comply with the Cost Accounting standards, such companies shall disclose the deviation from the standards, the reasons for such deviation; and the effect, if any, arising due to such deviation.
ICWAI issued the following CAS so far:
CAS 1 : “CLASSIFICATION OF COST”
CAS 2 : “CAPACITY DETERMINATION”
CAS 3 : “OVERHEADS”
CAS 4 : “COST OF PRODUCTION FOR CAPTIVE CONSUMPTION”
CAS 5 : “COST OF TRANSPORTATION”
CAS 6: “ DETERMINATION OF ARM’S LENGTH PRICE
CAS 7 : “MATERIAL COST”
Guidance Notes are recommendatory in nature. A member should ordinarily follow recommendations in a guidance note .
“If the same have not been followed, the member should consider whether keeping in view the circumstances of the case, a disclosure in his report is necessary”
ICWAI has recently issued two guidance notes:
GUIDANCE NOTE ON INTERNAL AUDIT
GUIDANCE NOTE ON COST OF PRODUCTION FOR CAPTIVE CONSUMPTION
Self regulation guidelines
A.QUALITY REVIEW BOARD
a) to make recommendations to the Council with regard to the quality of services provided by the members of the Institute
b) to review the quality of services provided by the members of the Institute including cost audit services; and
c) to guide the members of the Institute to improve the quality of services and adherence to the various statutory and other regulatory requirements
B.CONTINUOUS EDUCATION REQUIREMENT
To meet the requirement of professional skills in the current changing dynamic economic scenario, Cost Accountants in practice and service (members of our Institute) should equip themselves with the new skills and concepts to meet the challenges and render yeomen’s services to trade, commerce and industry. Therefore, ICWAI prescribes mandatory training to the members in practice and service under Continuing Education Programme as under:
For Members in Practice
(i) The member should undergo minimum mandatory training for 20 hrs. in a period of 3 years.
(ii) The minimum hours of training in a year is 6 hrs.
(iii) The certificate of attendance for training have to be enclosed with the application for renewal of Certificate of Practice.
For Members in Service
(ii) The minimum hours of training in a year is 4 hrs.
(iii) The certificate of attendance for training have to be enclosed with the application for renewal of membership.
The attendance of members in National Cost Convention, Regional Cost Convention, Seminars/Workshops conducted by the Institute/Regional Councils/Chapters (both paid/unpaid programme) will be reckoned against the requirement of mandatory training period under this scheme.
The requirement specified above will not apply to a member who has attained the age of 65 years.
SEMINARS, MANAGEMENT DEVELOPMENT PROGRAMS, PROFESSIONAL DEVELOPMENT PROGRAMS, REGIONAL & NATIONAL CONVENTIONS
The Management Accountant Journal
The Management Accountant is one of the most valued professional journals in India on Cost and Management Accounting, Cost management, Economics, Finance, Management, Corporate Laws and other relevant subjects. It is the official organ of ICWAI.
The Journal has an active circulation of around 25,000 copies per month circulating among the students and members of the Institute – most of them holding key positions in corporate and government sectors, education, consultancy, trade and services etc. Besides, it circulates among various other subscribers in India and abroad – most of them are institutional subscribers consisting of leading corporate houses, Universities and Institutes, professional and regulatory bodies in India and abroad.
The journal has been acclaimed widely not only in India but abroad also and many of its articles, features and editorials are extensively quoted in the national and international media. Two articles published in 1996-97 have also ranked among the best 10 articles on Management Accounting published in the world by International Federation Of Accountants.
ICWAI has published Cost Accounting Record Rules And Cost Audit (Report) Rules for more than 30 industries – such as – Cycle, Cement, Automobile Battery, Tyre & Tube, Tractor, Aluminium, Vanaspati, Sugar, Paper, Fertilizer, Milk Food, etc.
ICWAI has brought out the following Research publications:
– Financing Asset Replacement
– Inflation Accounting As A Tool to Fight Inflation
– Management Accounting Problems in Small Scale Industries
– Inflation Accounting Tools and Techniques
– Glossary Of Management Accounting Terms
– Corporate Capital Structure and Cost Of Capital
– Cost and Quality Control
– Management Information Reports for Operating Managers
– Cost Accounting in Commercial Banking Industry
– Farm Management Accounting And control
– Management Accountant and The Computer
– An Introduction to Cost Accounting in Commercial Banking Industry
– Management And Accounting for Research and Development – The Indian Praxis
– Research Bulletin ( Biannual each issue )
– Guidelines On Management Accounting: Capacity Determination
– Profit Planning
– Mutual Funds In India
– Human Resources Accounting
C. MANAGEMENT ACCOUNTING GUIDELINES
ICWAI has so far brought out four Management Accounting Guidelines to provide guidance to its Members, Industries and Regulatory bodies in the area of Management Accounting.
MAG – II
VALUATIONS MANAGEMENT – A TOOL OF MANAGEMENT ACCOUNTANT
MAG – III
IMPLEMENTING CORPORATE ENVIRONMENTAL STRATEGIES
TOOLS AND TECHNIQUES FOR ENVIRONMENTAL ACCOUNTING FOR BUSINESS
ICWAI has taken initiative to set up Research & Training Centres by laying the foundation stone for the Hyderabad Centre of Excellence, which will be the first in a series of such centres to be set up by ICWAI for research and training in the country.
It will be the state-of-the-art facility spread across 2,000 square metres with five floors which would primarily focus on research activities in services sector.
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