Framing accounting standards for local bodies is high priority

(Institute of Chartered Accountants of India) ICAI is taking steps to expand the horizons of CAs and to help the government in its efforts to reform its accounting practices, besides creating awareness about tax compliance among businessmen and traders. ICAI’s recently elected president Sunil Talati tells about the regulator’s priorities. Excerpts:

What is the progress being made in government’s transition to accrual system of accounting?

We, along with the Comptroller and Auditor General of India, are facilitating the government’s transition to accrual-based accounting. The Government Accounting Standards Advisory Board (GASAB) is working on this. We are also invited by the deputy chairman of Rajya Sabha K Rahman Khan to appraise all parliamentarians about the benefits of this system. I am sure this would infuse a lot of transparency in government’s financial transactions.

New steps taken to make the profession more attractive?

We are in touch with the company affairs ministry to increase the number of students one chartered accountant could train. Now, depending on experience and the number of assistants he employs, CAs could train a maximum of about five students. This would enable more students to join this rewarding profession. Besides, we are making massive investments into the facilities needed for our members and students. Recently, we have revised our curriculum to shorten the duration and to incorporate IT training. This exercise would continue.

What are the new facilities for students and members?

We have just approved significant investments to set up centres of excellence and IT laboratories across the country. We would pump in about Rs 100 crore on this project. Centres of excellence would come up at Noida, Bandra Kurla complex in Mumbai and in Hyderabad. Some of them would be housed in a landscape of more than 1 lakh sq ft.

What are the other priorities of the institute?

Framing accounting standards for local bodies is a focus area. We would also evolve new standards for internal-audit and systems-audit, besides harmonising existing standards with international standards. Tying up with international accounting bodies on research, evolving new industry specific guidance notes and helping the government maximise tax compliance are also on the agenda. Popularising accounting profession in schools and colleges, spotting the brightest students in the country and guiding them into the profession and promoting e-learning are the other priorities.