No need to regulate ICWAI under MCA

Dear Finance Professionals

Please analyse the following facts across the whole world, the definition of management itself manadates it not to be regulated.All most all management accounting bodies are not regulated by any goverment in the world. It is merely a customised use of any accounting professional in any corporate.

It is talored made designation in the organisations. On the basis of global practcies , our GOI may tranfer current ICWA to HRD minisrty so that we have separate institute which can provides skilled bussiness accountants specillay for corpoartes. But the same should be totally restricted from public domain.

Financial vs. Managerial Accounting

Although financial accounting and managerial accounting are closely related and work side by side but they are different on following aspects:

Users: Users of financial accounting information are people outside the organization such as stockholders, government, investors, etc. The users of managerial accounting information are people inside the organization for example managers and entrepreneurs.

Time: Financial accounting is mainly concerned with past business activities. Financial accounting is used to record the actual facts and figures of financial transactions. Although managerial accounting does involve the analysis of past business activities to evaluate departmental performance, it is also concerned with future planning and budgeting.

Regulation: Financial accounting practices are governed by GAAP and IFRS etc. Since financial accountants have to report about the financial performance of the business to external users therefore it is very necessary to enforce such regulations to provide correct information to people outside the organization. Managerial accounting is not governed by such rules and regulations.

Requirement by Law: Registered companies are required by law to produce and publish financial accounting information. But managerial accounting is not mandatory by law. It is only required internally.

Differences between management accounting and financial accounting From Wikipedia, the free encyclopedia The structure of accounting as documented by the International Federation of Accountants

The differences between management accounting and financial accounting include:[1] Management accounting provides information to people within an organisation while financial accounting is mainly for those outside it, such as shareholders Financial accounting is required by law while management accounting is not. Specific standards and formats may be required for statutory accounts such as International Financial Reporting Standards. Financial accounting covers the entire organisation while management accounting may be concerned with particular products or cost centres.

Managerial accounting(CWA) is used primarily by those within a company or organization. Reports can be generated for any period of time such as daily, weekly or monthly. Reports are considered to be "future looking" and have forecasting value to those within the company.

Financial accounting (CA)is used primarily by those outside of a company or organization. Financial reports are usually created for a set period of time, such as a fiscal year or period. Financial reports are historically factual and have predictive value to those who wish to make financial decisions or investments in a company.

Management Accounting is the branch of Accounting that deals primarily with confidential financial reports for the exclusive use of top management within an organization. These reports are prepared utilizing scientific and statistical methods to arrive at certain monetary values which are then used for decision making. Such reports may include: Sales Forecasting reports Budget analysis and comparative analysis Feasibility studies Merger and consolidation reports.

Financial Accounting, on the other hand, concentrates on the production of financial reports, including the basic reporting requirements of profitability, liquidity, solvency and stability. Reports of this nature can be accessed by internal and external users such as the shareholders, the banks and the creditors.