ICAI turns 70 on 1st July

Introduction

The ICAI (INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA) is a statutory body established under an act of parliament. It is governed by Chartered Accountants act 1949, which was passed by act of Parliament on 1st July 1949. There by 1st July is considered to be "CHARTERED ACCOUNTANTS DAY." Which is celebrated by all branches of institute and happens to be a big function for institute as a whole in the country.

This day 1st July is considered as one of the most important day for members of noble profession primarily because of its existence recognition to be part as members of largest accounting body. In addition to it, students pursuing this course should also respect this day as in the time to come they will become part of this profession. Further to it had chartered accountant amendment act, 1959 which was further reconstituted as chartered amendment act 2006.

It is considered as second largest accounting body across the globe. The ICAI motto is (ya esha Supteshu jagrati) which means "eternal vigilance awakening even when the world is asleep". It is a profession governed by high level of independence, integrity confidentiality. It is a regulator and developer of trusted and independent professionals with world class competencies in accounting, auditing, taxation finance and business advisory services.

HISTORY OF ICAI prior to 1949

Prior to the inception of ICAI, there was a course on government diploma in Accountancy certificate. Any member whose name was entered in the register was called the registered accountant.

When India attained independence in 1947 Indian accountancy board was formed to advise the governor-general of India and also the companies act 1913 had raised a lot of issues. Subsequently, in the year 1948, an expert committee was formed to look into this issue.

The expert committee even suggested that separate autonomous association of persons should be formed to regulate the profession. The government of India there by accepted the suggestion and passed Chartered accountants act 1949 even before INDIA became a republic. It can, therefore, be understood that government had faith in accountancy profession even before country parliament was set up. In order to be more extra special the word chartered was replacing “registered” which became “ chartered accountant”. On this account that the word chartered got recognized hence forth 1st July is there by treated as CA day.

After being passed by an act of parliament in 1949, the 1700 members who were enrolled as a registered accountant under government diploma in accountancy certificate were now enrolled as members of ICAI (after passed in parliament). MR G.P KAPADIA was one of the founding members of the profession and the first membership number was given to him.

Incidentally, he became the first president of ICAI, who was long-serving President of the Institute for a period of 3 years in the council (1949-1952). All other presidents have served only for a tenure of 1 year GP Kapadia firm named G P Kapadia & Co. is still in existence. This can thereby be indicating how strong the profession is growing.

The motto of ICAI is taken from the quotation of Upanishad which was given by SRI AUROBINDO. As part of emblem. CA CS Shastri a chartered accountant went to AUROBINDO AND MADE suggestion and thereby it was accepted.

Significance facts of ICAI

a. The first committee of the institute was researching committee which was formed in the year 1955. This committee is considered to be the backbone of the institute. this committee was formed even before CPE (continuing professional education committee) came into existence. this committee works at larger interest of members and gives its suggestions in the way business is done with ease.

b. With respect to the field of auditing, the institute sets the highest standard. From the year 1964, the institute was issuing an omnibus statement. This, however, was not been widely recognized. ICAI then in the year 1977 became a member of IFAC(international federation of accountants).there onwards AUDITING PRACTICES COMMITTEE was constituted which issues SAP (STATEMENTS ON STANDARDS AUDITING PRACTICES). With this continuing for around two decades. In July 2002 the auditing practices committee got converted into AASB(AUDITING AND ASSURANCE STANDARDS BOARD) which issues SA (STANDARDS ON AUDITING). The standards on auditing are based on international level but converged into Indian professional requirement.

c. In Field of accounting the institute has been highest standard setters and no substitute to it. The ASB(accounting standard board) frames and give Exposure draft which is open for public comments .there by NACAS (NATIONAL ADVISORY COMMITTEE ON ACCOUNTING STANDARDS) issues it on approval of MCA (ministry of corporate affairs). Recently the INDAS(Indian accounting standards ) converged with IFRS(international financial reporting standards) has been finally adopted and Ministry of corporate affairs gave its approval from 16/2/2015. The reporting is now changing from true to fair hence the entire concept of Ind AS is based on fair value concept. the fair value concept is itself a standard given in IND AS 113 "fair value measurement". The Indian accounting standards are based on international level but converged into Indian style.

d. In the field of taxation the institute every year gives the budget proposals for direct tax and indirect tax through direct tax committee and indirect tax committee to Finance ministry of country. Significance achievement in indirect tax was in year 2017 when long waiting GST (goods and services tax) was introduced . With reference to the direct tax, the concept of tax audit under 44 ab of income tax act 1961 was introduced whereby CHARTERED ACCOUNTANT has the power to do such attestation function. From 2000 onwards the scope of international taxation is rapidly increasing day by day due to globalization, cross-border transactions, topics like transfer pricing, BEPS (BASE EROSION PROFIT SHIFTING) various tax models are areas which a CA qualifying in 21 st century should explore these areas of practice.

e. The institute syllabus and examination system is considered to be the best. The institute updates the syllabus according to changes in laws, rules, standards. Always for once in 8 years new scheme of education is introduction with realignment of syllabus across the various levels and redistribution of marks according to the industrial and economic factors. Till 1977 the coaching board was a guide to students. From 1977 the board of studies got replaced by coaching board . the board of studies prepares study material question bank revision test papers ,mock test papers, and other supplements . The students who passes final examination have all the updated knowledge in all subjects. The board of studies is always at the helm of students. Apart from theoretical education Articleship training is part of course . more than above the institute has even introduced management communication skills course and information technology course from 20th century. This was introduced considering the MBA(master in business administration) are becoming business leaders in quick time when they start their career. this will enable the CA to move from problem finders to problem solvers

f. More than anything continuing professional education committee is at helm of its members . this committee helps members to be aware of all recent updates development of its profession. A member in practice is required to comply with CPE norms on mandatory basis whereas for a member in service is on voluntarily basis. Also the ethical standard board which from time to time give its professional ethics with respect to code of conduct. The editorial board of ICAI also publishes students journal, members journal, various regional council journal, also other publications.

Conclusion

As CA profession is governed by the highest level of integrity, confidentiality and adequate independence it has thereby great heights.

Very transformational reforms which have done a huge impact are.

1) The women empowerment committee constituted in 2009 in order to help women members of the profession to build their career without hurdles. Special programs are now conducted exclusively for women to avoid setbacks faced by them in their career. In the year 2014 a women portal site was launched for women. The new companies act 2013 has provided role of women in corporate boards. It every requires at least one women director

- Listed companies.

- A public company in which paid up share capital exceed 100 crores or more, turnover exceeds 300 crores or more. The limits are based on previous year audited financial statements.

2) The young member's empowerment committee launched in 2014 exclusively for young members joining the profession. this committee acts as an aid with respect to giving confidence to young members either in the field of industry or practice. This committee launches special events for young members to attain great heights and establish a position in their careers. It acts as a platform for young Chartered accountants making an entry into the profession.

At last 1st July is considered as

- CA day
- The launch of a new scheme of education and training of ICAI in the year 2017 by the prime minister of our country
- Sale of goods act (1930 1st July)
- GST introduced in India (2017)
- Doctor's day

A common word of the message to students doing CA and members of the noble profession:

Never forget 1st July like one never forgets the birthday, important functions. This day students, members, employees of ICAI should have respect for the profession.