Sitharaman said India’s new economy was being driven by start-ups, new-age industries and industries transitioning from traditional methods to modern approaches, which require CAs to not only use technology themselves, but also urge their clients to do the same.
Finance minister Nirmala Sitharaman has urged chartered accountants (CAs) in the country to familiarize themselves with new-age concepts and areas of accounting and compliance including carbon accounting, CSR (corporate social responsibility) accounting and auditing as well as due diligence related to ESG (environmental, social and governance) to be at par with their counterparts in other nations amid changing global practices and compliance needs.
“There are newer areas with which chartered accountants will have to familiarize themselves, especially given global developments, to better advise clients on new greenfield areas. Whether it’s carbon accounting, CSR accounting and auditing, or ESG reporting,” she said, speaking at the national CA conference organized by the Institute of Chartered Accountants of India (ICAI) in Bhubaneswar on Thursday. The finance minister put the onus on CAs to set up best practices as a template for complying with global requirements, which she said will increasingly become mainstream.
Sitharaman said India’s new economy was being driven by start-ups, new-age industries and industries transitioning from traditional methods to modern approaches, which require CAs to not only use technology themselves, but also urge their clients to do the same.
“All of this requires the support of CAs, guiding clients and encouraging them to embrace new technology. This will be possible only when CAs are at the top in adopting technology. I hope you will build on the success of the World Congress of Accountants held in November 2022, and you should strive to forge more collaborations with other international organizations,” she said.
Sitharaman said the government was engaged with other countries to allow Indian CAs to work with their counterparts overseas, and that existing memoranda of understanding signed between the charters should be leveraged.
“The government is actively ensuring that India’s chartered accountants become global leaders and engage with counterparts from other countries, thus enabling the sharing of the best possible knowledge,” she said. In May, ICAI renewed its MoU with the Institute of Chartered Accountants in England and Wales (ICAEW).
Sitharaman said mutual recognition and MoUs with Australia, New Zealand, Ireland, Canada, Malaysia, the UAE, Saudi Arabia, Qatar, Bahrain, Oman and South Africa should be fully leveraged.
The finance minister urged ICAI and its members to beef up financial literacy across the country, for retail investors and students, while noting the contribution of CAs towards helping in expanding the tax base and smooth implementation of the Goods and Services Tax (GST) regime.
“Digitization aids in promoting financial literacy. ICAI has 168 branches, five regional councils and a presence across 17,000 of the 19,100 postal codes in the country. For financial literacy and the course content provided to students nationwide, ICAI is well-positioned to leverage digital access more effectively,” she said.
Article Credits: Mint