The Hindu Business Line : ICWAI mulls set of new accounting standards

THE Institute of Cost and Works Accountants of India (ICWAI) proposes to come out with a set of new cost accounting standards. It has identified three topics, based on which fresh standards will be drafted. The topics relate to equalisation of transportation cost, job charges and anti-dumping.

The proposed standards will complement the work already carried out by the institute in this direction.

ICWAI has introduced four standards so far. These pertain to overheads, classification of costs, cost of production for captive consumption and capacity determination. Dr H.R. Subramanya, President, ICWAI, said that the institute plans to establish a number of cost accounting standards in the days ahead.

"We hope to offer a set of uniform codes, aimed at empowering cost accounting professionals," he said, adding that each standard will emerge as a benchmark for practitioners.

The institute will also try to implement measures to improve its functioning and enhance efficacy.

It proposes to focus on building relationships with users of the profession and create scope for interaction with industry.

Dr Subramanya, who serves as a Director of National Mineral Development Corporation, said that the service sector would be a focus area for ICWAI.

"There is adequate scope in emerging areas such as insurance and telecom. ICWAI (and its members) are gearing up to meet the challenges offered by the post-WTO scenario."

On another front, the institute is keen on establishing post-graduate diploma courses on relevant subjects such as ERP, decision support systems and systems appraisal.

It is also interested in providing specialist services in such fields as Central Excise, VAT and service tax.

Taking steps to recover dues from members

ICWAI has taken steps to "recover" the money that is due to it from council members who had earlier gone on foreign trips - an issue that had subsequently led to a huge controversy.

"There was a procedural lapse by the then Council. We are in the process of recovering these dues," Dr Subramanya told presspersons in his first interaction with the media after taking over as President.

The institute's attempts in this direction may be seen in the context of notices served by the Government, asking it to show reasons why certain measures were taken by a few former office-bearers.

ICWAI, however, now says that it does not run on a deficit. In fact, there has been a surplus of about Rs 54 lakh in 2003-04.

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