The definition of an accountant has been a topic of discussion for quite some time now. Recently, there has been a proposal to include company secretaries and cost accountants in the definition of an accountant. However, after careful consideration, it has been decided that this recommendation will not be implemented.
The Institute of Chartered Accountants of India (ICAI) has stated that the inclusion of company secretaries and cost accountants in the definition of an accountant is not necessary. The ICAI is the statutory body responsible for regulating the profession of chartered accountants in India. They have stated that the current definition of an accountant is sufficient and there is no need to expand it.
The proposal to include company secretaries and cost accountants in the definition of an accountant was put forward by the Ministry of Corporate Affairs (MCA). The MCA had suggested that this change would bring uniformity in the definition of an accountant and would also help in the ease of doing business. However, the ICAI has argued that the roles and responsibilities of a chartered accountant, company secretary, and cost accountant are distinct and cannot be merged into one.
The ICAI has also pointed out that the current definition of an accountant is in line with international standards. The International Federation of Accountants (IFAC) defines an accountant as a professional who is qualified to provide a range of services relating to accounting, auditing, taxation, and financial management. This definition is also followed by other countries such as the United Kingdom, United States, and Australia.
Moreover, the ICAI has stated that the inclusion of company secretaries and cost accountants in the definition of an accountant would dilute the value and importance of the chartered accountancy profession. Chartered accountants undergo rigorous training and have to clear multiple levels of exams to become a member of the ICAI. They are also required to adhere to a strict code of ethics and professional conduct. The ICAI believes that including other professionals in the definition of an accountant would undermine the hard work and dedication of chartered accountants.
The decision to not include company secretaries and cost accountants in the definition of an accountant has been welcomed by the chartered accountancy community. They believe that this decision will help in maintaining the integrity and credibility of the profession. It will also ensure that the quality of services provided by chartered accountants remains uncompromised.
In conclusion, the ICAI has made a wise decision by not recommending the inclusion of company secretaries and cost accountants in the definition of an accountant. This decision is in the best interest of the profession and will help in maintaining its standards and reputation. The chartered accountancy profession plays a crucial role in the economy and it is important to preserve its value and importance. The ICAI’s decision is a step in the right direction and will help in upholding the integrity of the profession.
