The Hindu Business Line : ICWAI plans new cost accounting standards

THE Institute of Cost & Works Accountants of India (ICWAI) proposes to come out with a set of new cost accounting standards, its President, Mr H.R. Subramanya, announced here on Friday.

Addressing a press conference, he said this was part of the institute's vision of emerging as an institution of excellence through harmonised standards and high quality services for propagation of cost and management accountancy.

On the proposed new cost accounting standards, he said the ICWAI had identified three issues — equalisation of transportation cost, job charges and anti-dumping.

"These proposed standards will complement the work already carried out by the institute in this direction. The institute plans to establish a number of cost accounting standards that will be a benchmark of valuation for cost accountants," Mr Subramanya said.

He said the ICWAI had formulated an action plan for the year that includes reinforcement of relationship with the users of the profession, ensuring constant interaction with the industry, service sector and Government, and providing assistance to them to take advantage of the opportunities and face the challenges of the post-WTO scenario.

The institute also plans to highlight the value-adding role played by cost audit and cost management and strive for extending the same to all manufacturing and service sectors.

According to Mr Subramanya, the institute also proposes to render exclusive and specialised professional services in the areas of central excise, VAT (Value Added Tax) and service tax.

Apart from working for the inclusion of cost accountants in the definition of accountant in the Income-Tax Act, the ICWAI would also initiate measures for re-enabling the institute whereby user-friendly communication infrastructure would be created for interaction between the institute, members and students, he said.

According to him, the appointment of cost auditor at the annual general meeting, providing homogeneity in bringing within its ambit the insurance, banking, electricity supply and other companies would ensure thatthe enactment has greater accountability and logic in current-day governance.

"The redeeming feature of the entire exercise is that the number of sections is expected to be get reduced to less than 300 from the existing 781 sections and 15 schedules and yet cover the subjects comprehensively," the ICWAI President said.

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