The Institute of Cost Accountants of India (ICMAI) has released an Exposure Draft of the revised Code of Ethics for its members, incorporating Independence Standards. This update aligns with the International Code of Ethics, as recommended by the International Federation of Accountants (IFAC). A working group and the Cost Auditing and Assurance Standards Board (CAASB) reviewed and modified the code to ensure compliance with Indian laws and regulations. The draft was approved in principle by the ICMAI Council in its 358th meeting on 24th February 2025 and is now open for public comments until 17th March 2025.
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
(Statutory Body under an Act of Parliament)
Release of Exposure Draft Code of Ethics for the members of the Institute Including the Independence Standards
The Institute of Cost Accountants of India is a member of the International Federation of Accountants (IFAC) which has recommended the Institute to revise the Code of Ethics for its Members on the lines of the International Code of Ethics.
Accordingly, the Institute took up the task of developing and implementing its ‘Code of Ethics and Independence Standards’ in line with the International Code of Ethics, as recommended by IFAC taking an approach of convergence.
Initially, a working group led by CMA Dr. Paritosh Basu and Dr. Swapan Sarkar carried out the basic assessment of the matter and submitted its report containing its observations and recommendations for modifications in the code. Based on the recommendations of the Working Group, the Code of Ethics was analyzed by CMA Sankar Panicker, an advocate, focusing on areas directly affecting the profession of Cost and Management Accountants. Finally, considering the observations and recommendations of the working group and to implement the same logically, it was decided by the competent authority that the Cost Auditing and Assurance Standards Board (CAASB of ICMAI) would take up the matter and take it forward.
The Chairman (CAASB) constituted a Task Force of the following members having the knowledge of the relevant Statutes, Regulations, and Standards, to take the matter forward in a structured manner
1. CMA Ashwin G Dalwadi, Chairman (CAASB of ICMAI) – Chairman
2. CMA Neeraj D Joshi, Council Member, ICMAI – Member
3. CMA Rajendra Singh Bhati, Council Member, ICMAI – Member
4. CMA (Ms) Parvathy Venkatesh, PCMA – Member
5. CMA Ravi Kumar Sahni, PCMA – Member
The Task Force identified the provisions requiring changes and/or redrafting certain specific clauses of the IFAC’s draft Code of Ethics in the light of the relevant provisions of the Companies Act, the Cost Accountants Act and other legislation. The Task Force held 6 meetings virtually and devoted more than 30 hours to the exercise of carrying out required modifications in the draft code.
While doing these convergence exercises, all due changes were incorporated by the Task Force to ensure that all requirements of relevant Indian laws, statutes, and promulgations of the concerned Regulators were complied with. The draft Code of Ethics as finalized by the Task Force of the CAASB was discussed by the CAASB in its 44th meeting held on 23rd February 2025 and recommended to the Council of the Institute for consideration.
The Council of the Institute in its 358th meeting held on 24th February 2025 has in-principle approved the draft Code of Ethics for the members of the Institute including the Independence Standards. It has also been decided by the Council to expose the Draft Code of Ethics including the Independence Standards on the Institute’s website seeking public comments latest by 17th March 2025.
Draft of Code of Ethics shall be finalised by the Board in the light of the suggestions / comments received within the prescribed last date. Please submit your suggestions / comments on the Draft Code of Ethics through email at caasb@icmai.in strictly in the format given hereunder:
| Sl. | Chapter | Section / Clause Number | Suggestion | Justification |
To download the Exposure Draft, please click here
With best regards,
CMA Ashwin G Dalwadi
Chairman, CAASB (2024-25)
24th February 2025
