Institute of Cost Accountants of India
The Institute of Cost Accountants of India (ICMAI), previously known as The Institute of Cost & Works Accountants of India (ICWAI), is a premier statutory professional accountancy body in India with the objects of promoting, regulating and developing the profession of Cost & Management Accountancy. It is the only licensing cum regulating body of Cost & Management Accountancy profession in India. It recommends the Cost Accounting Standards to be followed by companies in India to which statutory maintenance of cost records applicable. ICMAI is solely responsible for setting the auditing and assurance standards for statutory Cost Audit to be followed in the Audit of Cost statements in India. It also issues other technical guidelines on several aspects like Internal Audit, Management Accounting etc. to be followed by practising Cost Accountants while discharging their services. It works closely with the industries, various departments of Government of India, State governments in India and other Regulating Authorities in India e.g. Reserve Bank of India, Insurance Regulatory and Development Authority, Securities and Exchange Board of India etc. on several aspects of performance, cost optimisation and reporting.
भारतीय लागत लेखाकार संस्थान
|Motto||तमसो मा ज्योतिर्गमय|
|Formation||28 May 1959|
|Legal status||Recognised statutory professional organisation established by a special Act of Parliament of the Parliament of India|
|Headquarters||CMA Bhawan, 12 Sudder Street, Kolkata - 700016 India Kolkata, India|
|CMA Balwinder Singh|
|CMA Biswarup Basu|
Immediate Past President
|CMA Amit Apte|
|Remarks||Recognised statutory professional organisation and licensing body in India specialising exclusively in Cost and Management Accountancy|
|The Institute of Cost & Works Accountants of India|
The ICMAI is a Founder Member of the International Federation of Accountants (IFAC), Confederation of Asian and Pacific Accountants (CAPA) and South Asian Federation of Accountants (SAFA). ICAI is a member of the National Foundation of Corporate Governance (NFCG). The headquarters of ICMAI is situated in Kolkata (CMA Bhawan, Sudder Street, Kolkata) and one office at Delhi. The institute operates through its four regional councils located at Kolkata, Chennai, Delhi and Mumbai, 101 chapters in India and 10 chapters abroad. The practicing professionals are also known as CMA
The Institute of Cost Accountants of India (ICAI) was first formed as a registered limited company in the year 1944 (14.6.1944) as per the provisions of the then companies Act, 1913 with the initial objective of promoting, regulating and developing the profession of Cost Accountancy. Post Independence, the institute got statutory recognition when the Parliament of India enacted "The Cost and Works Accountants Act" (Act No.23rd of 1959), a special act, on 28 May 1959 to accord statutory recognition to ICAI (then ICWAI) as an autonomous professional Institute with the objectives of promoting, regulating, and developing the profession of Cost and Management Accountancy.
The CWA Amendment bill, 2011 was passed by both the Houses of Indian Parliament viz. Lok Sabha and the Rajya Sabha on 12 December 2011 and assented by the Honorable President of India on 12 January 2012. The changes were published in the Official Gazette of India on 13 January 2012. Official Gazette ICWAI to ICAI
Qualification and syllabusEdit
Cost & Management Accountants (CMAs)Edit
This is the primary qualification of the ICMAI and following completion of up to three levels (Foundation, Intermediate and Final) examinations and three years of practical training in areas like Management Accounting, Cost Accounting, Financial Accounting, Taxation, Audits, Corporate Laws etc. enables an individual to become a Cost & Management Accountant.
- The new syllabus has been introduced in August 2016 following the International Education Guidelines (IEG) of IFAC to get the advantages in the process of Mutual Recognition Agreement ( MRA) among /different member countries of the world under GATS in WTO.
- Subjects for examinations include management accounting, Financial Accounting, strategic management, taxation, corporate law, financial management, business valuation, financial reporting and cost & management audit etc.
- Students who have passed degree examination of any recognised university or equivalent are eligible for admission directly to Intermediate level.
- Paperwise exemptions on the basis of reciprocal arrangement are available to students who have passed Institute of Company Secretaries of India Final Examination.
- Examinations are held twice a year in June and December in various examination centres in India and overseas centres. And Results are declared in the month of August and February for June term and December term exams respectively.
A student has to pass three levels of examination and complete three years of practical training to be eligible to apply for Associate membership of the Institute.
The members of the Institute of Cost Accountants of India carry the designation ACMA (Associate Cost and Management Accountant) and FCMA (Fellow Cost and Management Accountant), as applicable based on their type of membership of the institute.
A person who has passed the Final Examination of the Institute and has obtained for a period of not less than three years of practical experience in the field of Cost & Management Accountancy and other related areas can apply for Associate Membership. The practical experience as above may be acquired prior to or after passing the Final Examination or partly before and partly after passing the said examination. The applicant has to produce evidence to the satisfaction of the Council
According to Sec 2(b) of CWA Act 1959, "Cost and Management Accountant" means a person who is a member of the Institute. Sec 5(1)provides that the members of the Institute shall be divided into two classes designated respectively as Associates and Fellows.
Associate Member (ACMA)Edit
This is the basic membership of the institute. Application for Associate Membership should be made in prescribed Form 'M2' available at the Headquarters of the Institute in Kolkata and the offices of Regional Councils and Chapters. The application should be accompanied with prescribed fees mentioned in the Form ‘M-2’, experience certificate(s) duly attested by the employer(s) in original and photocopy of certificates of date of birth and highest academic qualification of the applicant. The experience can also be certified by the employer(s) in Form ‘M-2’.
However, for general convenience, institute has established online membership application mechanism. After admission to membership, members are entitled to use the letter "ACMA" after his name to indicate that he or she is an Associate Member of the ICAI.
Fellow Member (FCMA)Edit
An Associate Member who has been in continuous practice in India for at least five years or a member who has been an Associate for a continuous period of not less than five years and who possesses such qualifications and experience as the Council may prescribe apply for Fellow Membership of ICAI.
Any person whose name is entered in the Register as a fellow of the Institute and so long as his name remains so entered, shall be entitled to use the letters "FCMA" after his name to indicate that he is a Fellow of the ICAI.
The Council of the Institute has mandated that the members of the Institute should use "CMA" as the prefix before their names to signify that he/she is a professional "Cost & Management Accountant".
Mandatory Continuing Education Programme (CEP) for membersEdit
In line with the recommendations of the International Federation of Accountants and feeling the need to have compulsory and continued training of the members of the Institute, the institute has made training mandatory for all members to ensure constant updating of knowledge and skills of members. The institute has also framed certain guidelines covering the requirement of eligible training, awarding and recording of credit hours as well as features for considering programmes eligible to award credit hours. The objective of Continuing Education Programme is to assist the members in widening their knowledge base and in improving their skills to be at the cutting edge of technology by providing training and expertise in critical areas.
Cost Accounting Standards (CASs) and Management Accounting Guidelines (MAGs) issued by ICAIEdit
Cost Accounting Standards (CASs)Edit
The Institute of Cost Accountants of India (ICAI), recognizing the need for structured approach to the measurement of cost in manufacture or service sector and to provide guidance to the user organizations, government bodies, regulators, research agencies and academic institutions to achieve uniformity and consistency in classification, measurement and assignment of cost to product and services, has constituted Cost Accounting Standards Board (CASB) in the year 2001 with the objective of formulating the Cost Accounting Standards (CASs).
The structure of Cost Accounting Standard consists of Introduction, Objectives of issuing standards, Scope of standard, Definitions and explanations of the terms used in the standard, Principles of Measurement, Assignment of Cost, Presentation and Disclosure.
The CASB has primarily identified 39 areas/items on which CASs are to be developed.
On visit to India during the month of May, 2010, the then President of IFAC, Mr. Robert Bunting praised the role of ICAI by saying that "In cost accounting standards, perhaps India is the global leader. Its role is limited to select sectors and is closely linked to public accounting in most countries. We are discussing about the possibilities to make this system acceptable in more regions."
The Council of the ICAI at its 251th Meeting held on 12–13 February 2009 and 258th Meeting held on 14 December 2009 decided on Mandatory application of Cost Accounting Standards (CASs). The CASs shall be mandatory with effect from period commencing on or after 1 April 2010 for being applied for the preparation and certification of General Purpose Cost Accounting Statements. So far ever 22 Cost Accounting Standards and 4 Management Accounting Guidelines have been issued by the Institute. The effective date of the standards are also mentioned in respective standards.
List of CASs issued by ICAI till date
CAS-1 (Final) on Classification of Cost
CAS-2 (Final, Revised 2012) on Capacity Determination
CAS-3 (Final, Revised 2011) on Overheads
CAS-4 (Final) on Cost of Production for Captive Consumption
CAS-5 (Final) on Average (equalized) Cost of Transportation
CAS-6 (Final) on Material Cost
CAS-7 (Final) on Employee Cost
CAS-8 (Final) on Cost of Utilities
CAS-9 (Final) on Packing Material Cost
CAS-10 (Final) on Direct Expenses
CAS-11 (Final) on Administrative Overheads
CAS-12 (Final) on Repairs And Maintenance Cost
CAS-13 (Final) on Cost of Service Cost Centre
CAS-14 (Final) on Pollution Control Cost
CAS-15 (Final) on Selling & Distribution Overhead
CAS-16 (Final) on Depreciation & Amortisation
CAS-17 (Final) on Interest and Financing Charges
CAS-18 (Final) on Research & Development Expenses
CAS-19 (Final) on Joint Costs
CAS-20 (Final) on Royalty and Technical Know-How Fee
CAS-21 (Final) on Quality Control
CAS-22 (Final) on Manufacturing Cost
CAS-23 (Final) on Overburden Removal Cost
CAS-24 (Final) on Treatment of Revenue in Cost Statements
Besides issuing standards, ICAI is also issuing Guidance Notes to each important standards in more detail and with practical examples for better understanding & proper implementation of each standard to achieve the right objectives set out in each standard.
Management Accounting GuidelinesEdit
MAG-1 on Implementing Benchmarking
MAG-2 on Valuations Management a Tool of Management Accountant
MAG-3 on Implementing Corporate Environmental Strategies
MAG-4 on Tools and Techniques of Environmental Accounting for Business
Cost Audit & Assurance Standards (CAASs)Edit
With the introduction of "The Companies (Cost Audit Report) Rules, 2011" by Ministry of Corporate Affairs (MCA), Govt. of India, the scope & application of Statutory Cost Audit (u/s 233B of the Companies Act, 1956) has been widened manifold. The said rule also introduces a new concept named as 'Performance Appraisal Report' (PAR) which needs to be submitted by the Statutory Cost Auditor to the company along with the Cost Audit Report. This PAR is only meant for the company & it is not required to submit the same to the MCA like the Cost Audit Report.
In this changed context, the institute, addressing the needs of separate standards of auditing & assurance of cost records, has constituted the Cost Audit and Assurance Standards Board (CAASB) entrusting the responsibility to formulate standards and develop guidance notes in the areas of auditing, assurance, related services and quality control keeping in mind the special sophisticated structure & objectives of Statutory Cost Audit.
The sub-section (3) of section 148 of the Companies Act, 2013 gave the statutory mandate for separate auditing standards for audit of cost records as distinct from auditing standards applicable for audit of financial records. It stipulates that the auditor conducting the cost audit shall comply with the cost auditing standards which are issued by the ICAI, with the approval of the Government of India.
Till date, the CAASB has issued four standards:
CAAS-101 on Planning an Audit of Cost Statements
CAAS-102 on Cost Audit Documentation
CAAS-103 on Overall Objectives of the Independent Cost Auditor and the Conduct of an Audit in Accordance with Standards on Auditing
CAAS-104 on Knowledge of Business, its Processes and the Business Environment
The Institute of Cost Accountants of India (ICAI) has entered into a Memorandum of Understanding (MoU) with the leading Professional Accounting Bodies to enable Mutual Recognition and co-operation among the Institutes to develop the Profession of Management Accountancy for the benefit of their members in the pursuit of excellence in education and training and continuing professional development in Cost & Management Accountancy.
- Institute of Management Accountants (IMA), USA
- Chartered Institute of Management Accountants, UK
- The Institute of Cost and Management Accountants of Oman
- Institute of Public Accountants (IPA) Australia
- An MoU is also in existence with CMA Sri Lanka.
- Chartered Institute For Securities & Investments, UK
- Institute of Professional Accountants and Auditors of Russia (IPAR)
- Association of Chartered Certified Accountants (ACCA)
Notable CMA /ICWAEdit
Finance and accountingEdit
- Mrityunjay Athreya, Padma Bhushan, Management Advisor
- Subhash Chandra Garg, Government of India, Finance Secretary
- Chanda Kochhar, ICICI Bank, CEO
- J Ramachandran, Professor, IIMB
- P. K. Mukherjee, Executive Director of Sesa Sterlite Limited
- Samir Bhatia, Entrepreneur
- Kailasam Raghavendra Rao, Entrepreneur
- B. B. Chakrabarti, Professor
- G. J. R. Krishnan, Carnatic violinist
- Anil Kumar Choudhary , SAIL, Chairman
- Mrs H.K Joshi (Chairman and Managing Director), shipping corporation of India
- Dinesh Kumar Sarraf, Oil and Natural Gas Corporation, CMD
Some of the management accounting bodies worldwide besides the Institute of Cost Accountants of India (ICAI-CMA):
- Chartered Institute of Management Accountants, UK
- Institute of Management Accountants, US
- Institute of Certified Management Accountants, Australia
- Society of Management Accountants of Canada
- Institute of Cost and Management Accountants of Pakistan
- Institute of Cost and Management Accountants of Bangladesh
- Chartered Institute of Cost and Management Accountants, Nigeria
- Institute of Certified Management Accountants of Sri Lanka
- "Founding Members of IFAC in 1977". Ifac.org. Retrieved 30 July 2012.
- "ICWAI Membership of CAPA". Capa.com.my. 1 July 1949. Archived from the original on 15 September 2012. Retrieved 30 July 2012.
- "ICMAI membership of SAFA". Esafa.org. Archived from the original on 9 October 2011. Retrieved 30 July 2012.
- Seemant Ahlawat (1 October 2003). "Stakeholder in NFCG". Nfcgindia.org. Retrieved 30 July 2012.
- "ICWAI Act on MCA website" (PDF). Retrieved 30 July 2012.
- Present Syllabus of ICMAI
- new practical training scheme
- "Archived copy". Archived from the original on 25 April 2013. Retrieved 25 April 2013.CS1 maint: archived copy as title (link)
- ICMAI Examination
- Guidelines for enrollment to membership
- Guidelines for associate membership
- online membership application
- Guidelines for Fellow Membership
- "Guidelines for CEP for Members" (PDF). Archived from the original (PDF) on 23 October 2014. Retrieved 23 October 2014.
- "About CASB".
- "Q&A: Robert Bunting, President, IFA". Business Standard. Retrieved 2 June 2010.
- "Q&A: Robert Bunting, President, IFA". smartinvestor.in. Retrieved 2 June 2010.
- "Cost Accounting Standards".
- "About CAASB". Archived from the original on 29 October 2013. Retrieved 26 October 2013.
- "CAAS". Archived from the original on 29 October 2013. Retrieved 26 October 2013.
- Procedure for ICAI member to become member of IMA, US
- "MoU with CIMA". Archived from the original on 24 February 2015. Retrieved 24 February 2015.
- "Memorandum of Association signed by Omar Zawawi Establishments LLC(Omzest Group) and the ICAI of India". Archived from the original on 24 June 2013. Retrieved 20 October 2013.
- MoU with IPA
- MoU with CISI
- MoU with IPAR
- MoU with ACCA