Dear Members, |
The Indian accountancy profession has consolidated itself internationally to register its wise, strong and empowering global presence. Today, The Institute of Chartered Accountants of India produces world-class professionals who along with the desired IT and soft skills are professionally competent and fit to work in and for international economies in multicultural environment. Well diversified, structured, and broad CA curriculum, which is updated periodically to meet the demands of changed and complex business environment, hones their analytical and multitasking abilities, and time management skills. |
ICAI believes that a workplace needs to be open, expressive and happy, and, moreover, a place away from stress in order to be productive. ICAI that caters to the academic and professional requirements of its members and students, besides regularly extending help and assistance to the Government, needs to be transparent and consistent with its professional discipline and ethics. As you all know, ethical conduct is part of our fundamentals, due to which our nation continues to repose its trust in us as facilitators of the country’s fiscal discipline. |
While Indian industry is ready to embrace the adoption of Indian Accounting Standards (Ind AS), converged with IFRS, the stage is set for Indian Chartered Accountants to explore professional opportunities abroad. In the fast developing nation, opportunities are plenty and internationally, this demand proliferates. The feature on Global Opportunities published in this issue will be useful for the members to learn about the global opportunities. |
ICAI Extends Help to ICPAU in Further Consolidation of Profession |
As part of its commitment to help other nations in developing and consolidating accountancy profession in their jurisdictions, ICAI extended help to the Institute of Certified Public Accountants of Uganda (ICPAU) during a meeting with its President CPA Patrick Ben Kagoro and CEO and Secretary CPA Derick Nakajja and offered its revised study material. I along with my Central Council colleague CA. Anil Bhandari visited Uganda (Kampala) Chapter of ICAI. |
Audit Quality in Public Interest - Your Opinion Matters |
The International Auditing and Assurance Standards Board (IAASB) is an independent standard-setting body that serves the public interest by setting high-quality international standards for auditing, assurance, and other related areas, and by facilitating their adoption and implementation. Members should actively participate in providing suggestions and Comments on “Enhancing Audit Quality in the Public Interest: A Focus on Professional Skepticism, Quality Control and Group Audits”. The IAASB has also released a companion document designed at soliciting feedback from investors, audit committees, and preparers. The deadline for comment on both documents is May 16, 2016. |
Panama Papers’ Leak Highlights Global Problem of Tax Evasion |
The Panama Papers’ leak has brought the focus once again to the complexity of global tax evasion. The documents allegedly illustrate how wealthy individuals and public officials, hide assets from public scrutiny. While the use of offshore business entities is not illegal in the jurisdictions in which they are registered, it has been pointed out that some of the shell corporations may have been used for illegal purposes. This issue will surely be raised at appropriate forums globally. There is need for better coordination amongst the countries and I am sure with the data and technological tools available, we will have better transparency in future. |
New ITR Forms Calling for Broad Information for Certain Assessees |
Central Board of Direct Taxes (CBDT) has notified the new income tax return forms for assessment year 2016-17 wherein with Assessment Year 2016-17, individuals and HUFs filing their returns of income in ITR-1, ITR-2, ITR-2A and ITR-4S, having total income exceeding 50 lakhs will now be required to furnish information regarding assets and liabilities in Schedule-AL of the relevant ITR form. It is a welcome measure as it will help in identifying accumulation of illegal wealth, black money and minimise tax evasion. This complements Government’s earlier legislation the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, legislation aimed at amending the Benami Transactions (Prohibition) Act, to bring tax evaders into the tax fold. At the same time, introduction of Unified Payment Interface (UFI) by the RBI through the National Payment Corporation of India is yet another new age initiative to make our economy as paperless economy having due audit trail that will help the government to track flow of funds. |
Indian Bankers ‘Bad Loans’ Dilemma |
At a time when the Indian banks are struggling to deal with the problem of bad loans, the global banking regulators’ body Bank of International Settlements (BIS) has proposed a uniform classification for nonperforming assets to ensure consistency in disclosures while seeking harmonisation of both quantitative and qualitative criteria of credit categorisation. Indian regulators and banks are striving hard to recover of bad loans from wilful defaulters. |
Brighter Economy Means More Professional Opportunities |
There is good news for India economy. The India Meteorological Department has predicted an ‘above normal’ monsoon this year, which is set to break the cycle of two straight drought years and help revive economy. As you are aware, though the farm sector contributes 15% to India’s GDP, it employs more than 50% of its workforce. To complement this emerging good trend, the industrial output growth rebounded in February while the retail inflation has eased in March to a six-month low, reveal the latest data released by Central Statistics Office. The index of industrial production rose an annual 2% in February after three months of contraction while retail inflation rose an annual 4.8% in March, slower than 5.3% in February. |
MCA Notifies Companies (Auditor's Report) Order, 2016 |
Ministry of Corporate Affairs has notified the Companies (Auditor's Report) Order, 2016 (CARO 2016) vide its Notification no. S.O. 1228(E) dated 29th March, 2016. This Order supersedes the Companies (Auditor's Report) Order, 2015 dated 10th April, 2015 and shall be applicable for the financial year commencing on or after 1st April, 2015. The new CARO 2016, which brings in mandatory reporting by the Statutory Auditors, aims to make reporting under this order more contemporary and valuable for corporate stakeholders. It strengthens the corporate governance and evolves transparency in functioning of the corporates. Looking at the urgency of providing guidance to our members in discharging their professional responsibilities in this regard, the Auditing and Assurance Standards Board of the ICAI has already finalised and released the Guidance Note on CARO 2016 to benefit the members. This is commendable work done by the Board to release the Guidance Note in such a short span of time considering the volume of work involved. I call upon members to update and keep abreast of the changes put forth by CARO, 2016 and the revised requirements and organise themselves to face the challenges ahead proficiently. |
Revised Chartered Accountancy (CA) Course Curriculum |
CA education is one of my topmost priorities as I believe in sustained and future-oriented growth of our profession. My vision is that accountancy profession and accountancy education need to always go hand in hand with academic, technological and economic innovations globally. It is with that objective that ICAI revised the CA education and training schemes. |
SAFA Board and Committee Meetings |
I am delighted to communicate that the ICAI is hosting the SAFA Board and Committee meetings along with the SAFA-IFAC Regional PAIB (professional accountants in business) Forum from 22nd to 24th April in Mumbai. This SAFA-IFAC Regional PAIB Forum gave the professional accountants in business and industry an opportunity of direct interaction with PAIB Committee of IFAC among others, while delving upon the vital subjects including governance, internal control and effective business reporting processes. |
ICAI’s Initiative for Robust Internal Systems |
Our present position should not make us complacent. Improvement is always possible. One of the distinct focus areas in the current year is to cultivate a robust and responsive practices improving the ‘transparent corporate governance’. Dynamisms are deployed to implement good cultured human resource processes to bridge the so perceived expectation gap of ICAI stakeholders. In the direction we have taken following consequential initiatives:
I am confident these measures will make ICAI more vibrant and result-oriented. |
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Recently, World Health Organisation (WHO) along with World Bank held a joint conference and detailed mental health as a global Burden of Disease and a serious deterrent to any economy. Promoting mental health and well-being is now a part of the United Nations Sustainable Development Agenda to transform our world by 2030. Today, mental-health conditions account for 37% of the healthy life years lost to non-communicable diseases like diabetes, which, if not checked, will effect a high global loss of US$ 6 trillion by 2030, according to an estimate. |
Best wishes, |
CA. M. Devaraja Reddy President, ICAI New Delhi, 23rd April 2016 |
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