Indo-UK Task Force on Corporate Affairs: I along with the then President CA. Amarjit Chopra, and Secretary Shri T. Karthikeyan with other officials of the Institute attended the 5th meeting of Indo-UK Task Force on Corporate Affairs recently in New Delhi. The meeting inter alia focused on mutual sharing of our respective perspectives of promoting good corporate governance, corporate sustainability issues, promoting audit quality and auditor oversight, collaboration and mobility of professionals and qualifications. We also shared the development with regard to our convergence with IFRS in the context of carve-outs vis-à-vis such emulation in the EU context. The two sides with great interest noted the emergence of related corporate social responsibility and best practices including environment getting due leverage in the Director’s Report. We cleared our position that we were fully compliant with the system of quality assurance, investigation and penalty, and that our Quality Review Board was quite independent, as more than 50 per cent of its members are from outside the profession, which gets its administrative and secretarial support through the Indian Institute of Corporate Affairs, Government of India. We further explained that, under new dispensation, the power to discipline our members is with the new Disciplinary Committee and Board of Discipline which are not under our Council’s control. Besides, the final authority on punishment to be given to the guilty is the Appellate Authority to be constituted by the Central Government, not our Council. We informed them that while we already have a functional mutual recognition arrangement with ICAEW, the process for similar arrangements with ICA Scotland and ICA Ireland would be soon revived.
Representation to Parliamentary Standing Committee
As you know, I along with my Central Council colleague CA. Jayant Gokhale, the then Chairman, Direct Taxes Committee had appeared before the Parliamentary Standing Committee on 19th January, 2011 for an oral hearing regarding the Direct Taxes Code Bill, 2010, and our views were favorably considered. However, certain questions were raised by the Chairman and the members of the Parliamentary Standing Committee with regard to our suggestions. We have recently submitted a detailed written reply to the Committee.
Development in Convergence of Accounting Standards
In accordance with the decision of the Council and the suggestions of NACAS, the Indian Accounting Standard on Agriculture is being redrafted. We decided to make amendment in existing AS 11 on the lines of Indian Accounting Standard (Ind AS 21), ‘The Effects of Changes in Foreign Exchange Rates’ to provide an option to defer the exchange differences arising on translation of long-term foreign currency items and recognise the same in profit or loss over the life of such items instead of its immediate recognition, to be followed by the companies after paragraph 46 of AS 11 ceases to be effective, i.e., from 1st April, 2011. It is a matter of immense satisfaction to share that we have completed the task of formulating Indian Accounting Standards converged with IFRS which were submitted and cleared by National Advisory Committee on Accounting Standards (NACAS) for recommendation thereof to the Ministry of Corporate Affairs (MCA) for the purpose of their notification. We have been able to fulfil the commitment that we had made to the Ministry and have been able to adhere to the stipulated timeline.
IFRS Certification Course: To meet the varying requirements of different stakeholders, we have taken all necessary steps to create mass awareness about the preparedness with regard to the convergence. I am pleased to inform that so far 2,607 members have been successfully trained through 100-hour Intensive Training Programme of the IFRS Certification Course across the nation. New batches have been started in Bangalore, Chennai, and Hyderabad.
Training Programme for C&AG: I am pleased to inform that a three-day training programme on IFRS was organised recently in Delhi for the officials of Comptroller & Auditor General (C&AG) of India. Chief Guest Shri Sunil Verma, Deputy C&AG, along with Ms. Ila Singh, Principal Director, C&AG, Chairman–ASB, and the undersigned, addressed the participants on the occasion. Around 50 participants from C&AG participated in the programme. Chairman and Secretary of ASB CA. Manoj Fadnis and Dr. Avinash Chander respectively must be congratulated for their relentless efforts in this regard.