There has been hue and cry over the central government overtures to set up Indian institute of accounting (IIA) in the line of IIT, IIM etc all over the country to such extent so as to finds its stout voices in the floor of parliament. It is quite natural since such proposal seeks to replace the decades old hegemony of ICAI on accounting matter including its power to issue accounting standard (IAS) in the line of INTERNATIONAL ACCOUNTING STANDARD. This is first time in history that a government is trying to find stepping feet of reform on a subject which virtually is the heart of economy and financial world. There is no segment in the financial world including taxation laws which are controlled by the accounting. That’s why ICAI is called the most powerful body after Bar council in the country. Now why this debate? what is the stumbling block on such setting up of such institute?
First it is worth to mention that setting up such institute on whims of the government is not an easy matter. Because in other fields like engineering, medical, management and law or fashion after passing of higher secondary a student would not have second thought to pursue any one of this stream since there are no other parallel course on same subject. Only there are differences of category of institutes like B.E college or IIT or Law college or Law university. But in accounting field after passing of HS there are two sole choices before a student either to to take admission in BCOM and side by side can pursue CA, COST, CS or may come to accounting stream indirectly by joining on CA, COST, CS courses from different fields of graduation like arts and science. So a student in accounting field either can pursue BCOM, MCOM and may call it a day for lading in a job or practice or may further pursue CA, COST. So, it is settled fact that CA, COST are the sacrosanct degree in accounting field having in any jobs or in practice. Now in this perspective what will be the role of IIA? Who will take admission in IIA? In accounting field all over the world in every country there is a supreme recognised body and degree in accounting like our CA. there is no conception of a parallel of this degree or any institution offering higher degree since the syllabus of CA is more than sufficient to address all accounting aspects. So nothing is left further to study further so as to impart another superior degree. So why student will go to take admission on IIA?
Secondly, unlike other streams or institutes ICAI is not only the academic institution but a guiding body of central government in all accounting aspects including in taxation matters. It is impossible to create a replacement body for the government since such pattern on accounting governance is followed world wide. Since the taxation and accounting is only the field where government is bound to go by the world norms. It can not act unilaterally nor to create any body replacing the ICAI.
Thirdly , in the higher level of study both direct taxes law and accounting go hand by hands like twin brothers means there is no taxation laws without accounting and no accounting practice without having high dose of taxation laws including case laws which are highest common product of research on two fields.
So hardly any further words need to be spent about peculiarity and strange nature of accounting and taxation world which will naturally put millions of questions and obstacles before any act of deviation.
Author Bio
The only worry after passing from Indian Institute of Accounting is the job placement part.While CA,Cost Accountant & Company Secretary are time tested professions they cannot be called less job oriented or lacking practical exposure.What practical expose an IIT Engineer have?Look at the Global ranking of our IIT’s.I have seen students in India also taking ACCA / CPA & other Finance courses for global exposure.Just making entry difficult for a course difficult does not qualify it to be one of the best.Lastly reservation of seats in all colleges we need to look into after 75 years of Independence.
This govt wants to intrude into the autonomy of all reputed and independent institutions and their functioning. Such attitudes will only dampen the enthusiasm and energy of the best professional minds in the country. CA is one of the most reputed and difficult to clear exams and in the pretext of competition they want to destroy that also. Other Institutions ruined already are CBI, NIA, EC, ED, and even the Judiciary.
The present regime wants all of them to become Stooges and subordinates.
What a tragedy!!!!
The term “Accounting Governance” used in this article is the most important aspect of being a CA. But this is one aspect that seems to be ignored in present day context. What has to be understood is the underlying issue as stated for justifying the IIA. If the ICAI can make the accountability of CAs stringent with equally stringent actions to monitor and curb bad practices, then creation of any other body would be rendered redundant. Today’s scenario requires a very tough monitoring and control mechanism by ICAI.
IIA is a brainchild of some one failed in CA exams and then got a chance to (mis) guide the Government to bring this IIA
ICAI is the only institution in India which purely plays on a qualifying candidates and moreover with no quota system
So any one passes the exams can be understood to be of some great analytical mind
It’s not the mind of an 11th or 12th passed candidate.
It may ultimately prove to be a great blunder and then may not any scope left to go back like Demonetisation and untested Imposition of GST
It is a welcome step by Government of India to end the monopoly of all the three Institutes namely ICAI, ICWAI and ICSI. Examinations of all three Institutes are toughest to the core which is the reason why there are so many Semi-Qualified people who could either practice or get a decent job and in a way we could say they have ruined their Career by joining these Institutes. IIA will be set up on the lines of IIT, IIM where the entrance itself will be difficult to crack so students can well decide on their career paths much before entering these prestigious Institutes instead of joining a Institute where they are not sure of qualifying.
Also there is no guarantee that the Students who get to qualify from all the three Institutes are any better as most of them lack professional knowledge as exams can be easily passed by mugging up rather than gaining knowledge.
To conclude, setting up IIA is a step in the right direction by the Central Government.
Are you a CA failure?
How can you say student passing CA have less knowledge icai giving certificate after 3 years of practical experience only…IIA can only give Theory…IIA will only have the value of CA inter passed…Because they can’t able to compete ICAI with Theory knowldge
Very true. I endorse your comments.
In think it’s proper to set up IIA’s for improvement of professional excellence in the field of accounting. In medical field also there are various branches like MBBS, BAMS and BHUMS etc.,so what the harm in introducing a new stream in Commerce. It’s always said that ICAI has been formed by the Act of the Parliment whereas the main body governing the university education UGC has also been formed by the act of the Parliment. It is high time that there should be competition in this field also.
It is welcome step for establishment of IIA.Students should be provided all opportunities to study Accountancy in a smooth way not as it is ICAI now. CAs should be ready for future competitions from IIA and not to oppose or fear for IIA.