The Parliamentary Panel/ Standing Finance Committee has submitted its report on the amendments introduced in the CA, CWA and CS (Amendment) Bill, 2021 in the Loksabha on 23/03/2022, as the proposed legislation was referred for examination by the Speaker to the Committee after considering representations from the concerned Institutes (ICAI, ICoAI and ICSI) and consultations with the MCA.
ICAI is expected to discuss the said report/ recommendations of the Standing Committee, in a meeting of the Past Presidents of the Institute which is scheduled to be held on 06/04/2022, in view of the fact that certain suggestions of ICAI have not been accepted by the Standing Committee, while framing the Report on CA, CWA and CS (Amendment) Bill, 2021. The ICAI is carrying out an Impact Analysis of the said Report and is likely to decide the future course of action after due deliberations.
Report of the Parliamentary Panel/ Standing Committee on Finance dt. 21/03/2022 in the matter of CA, CWA and CS (Amendment) Bill, 2021
TimesNow News dt. 28/03/2022
Indian Institute of Accounting: CA aspirants divided on parliamentary panel’s IIA suggestion
Indian Institute of Accounting and its implementation was put forth in by a parliamentary panel in a proposal. The news has certainly made an impact in the CA community. CA aspirants however, mainly stand divided when it comes to the creation of an IIA. Many have also raised questions as to what will happen if IIA is approved and put into action. See their reactions below.
A parliamentary panel in the Lok Sabha presented a proposal regarding the development on an Indian Institute of Accounting, IIA on Friday, March 25, 2022. The proposal further suggested that IIA in India will be run on the likes of Indian Institute of Technology and Indian Institute of Management. However, since the announcement of this proposal, many CA aspirants have expressed mixed reactions towards IIA.
The parliamentary report suggests that IIAs can be set up in India that may have a similar function to IITs and IIMs but will also ‘offer competition to the Institute of Chartered Accountants of India, ICAI’. Many CA aspirants have celebrated the proposal and are ‘excited’ to see the changes IIA will bring, if implemented.
CA aspirants in support of the panel’s suggestion for IIA have already created a slogan – “One nation One Accounting Body.” Many aspirants have also stated that the coming in of an IIA will help expand the field of CA in India and provide more opportunities to students who wish of pursuing a career as Chartered Accountants.
Usually the good outweighs the bad, but not this case. While some CA aspirants have shown positive reactions to the proposal of IIAs, the majority of the aspirants have strongly opposed the proposal and some are even confused as to what will happen if an IIA is actually created.
“Making IIA is a wrong decision to create competition. ICAI has been running with dignity for a long time and has great quality around the world. This move is highly unlikely for Indian business and economy,” stated an CA aspirant on social media.
“Don’t understand the requirement of an Indian Institute of Accounting. The nation has problems in the other fields of education, why interfere when ICAI has been performing so well?” stated a Chartered Account.
CA aspirants are majorly divided when it comes to the parliamentary proposal of developing an IIA. A section of CA aspirants have also stated they feel ‘confused’ as to what will happen if an IIA is actually developed? Questions surrounding the degrees, curriculum, authority, the validity of the certificate provided by ICAI and many more come into the light.
Many have also questioned whether IIA will be given power when it comes to auditing in India, like ICAI currently has, but an answer to that question is yet to be delivered. It is important to remember that the development of Indian Institute of Accounting is just a suggestion put forth in a discussion at the Lok Sabha. The creation of an IIA in India is under consideration and has not been finalised as of now.