The Hindu Business Line : ICAI to help Govt in accounting reforms

THE Institute of Chartered Accountants of India (ICAI) will help the Government in the accounting reforms programmes. In this regard, it will prepare a road map to corporatise the balance sheets of four major wings of the Government - Defence, Postal, Civil and Railways - from cash-based accounting systems to accrual-based ones.

The Government is taking up accounting reforms through Government Accounting Standards Advisory Board (GASAB). ICAI is a member in the subgroup constituted by the GASAB to look into the accounting reforms in these four wings. GASAB will hold a meeting in this regard on February 13.

Speaking to Business Line here, Mr T.N. Manoharan, ICAI President, said, "ICAI will prepare a concept paper and draw a road map to bring in accounting reforms. This will help the four `limbs' of the Government to corporatise their balance sheets."

He said the present cash-based accounting system focuses more on receipts and payments than on assets and liabilities. With accrual-based accounting system, there will be more accountability and transparency. This will help corporatise the spending of these `limbs' of the Government, he said.

Stating that the Union Urban Development Ministry is in favour of bringing in accounting reforms in urban local bodies, he said the Ministry has constituted a committee to look into this matter. The committee has agreed `in-principle' that ICAI will formulate accounting standards for urban local bodies in the country. The Ministry will endorse the standards for statutory backing.

A logo for CAs

ASKED about the progress in creating a brand image for CA professionals, Mr Manoharan said the ICAI has received 10 designs for a brand logo to the profession. The executive committee of ICAI will shortlist them. A logo for chartered accountancy profession is in the final stages of process. He hoped that the ICAI would come out with a brand logo in April.

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