Corruption in the corporate world, the ones like the Satyam scam that shook the Indian corporate sector, cannot be eliminated using any accounting standards nor by an accountant as it happens due to the greed of the people at the helm and not due to any procedure, ICAI President Amarjit Chopra said today.
Talking to reporters, he said convergence of Indian Accounting Standard with International Financial Reporting Standards (IFRS) would be inevitable for the Indian companies who were to go abroad to raise funds or make acquisitions. ”In the globalised scenario it helps both the corporate sector as well as the accountant fraternity. However, adoption of IFRS may not put an end to the accounting scams like Satyam scam, as it happened solely due to promoter’s greed,” he said.
”What can an account do if the promoter shows a fixed deposits that never existed or show inflated asset values. It is important that we educate young executives in the Indian businesses to be watchful and keep a safe distance from such unhealthy and unethical practices,” he added.
He maintained that scams like Satyam fiasco happened due to greed of some people and not due to any faulty accounting standards. Mr Chopra was in the city to address a workshop organised by Standing Conference of Public Enterprises (SCOPE) and Institute of Chartered Accountants of India (ICAI).