ICAI approaches ministries for double accounting system

The Institute of Chartered Accountants of India (ICAI) is approaching various ministries and departments of both central and state governments to advocate double accounting system, a top Institute official said on Friday.

The institute plans to approach the defence ministry in the next two-three months for introduction of double accounting system as the ministry traditionally gets on an average one third of the budgetary allocation, the official said.

"The institute has been extending its technical and infrastructural support towards the accounting reforms of various government offices. We have been approaching various ministries and departments of central and state governments for advocating a double accounting system. This would help in better analysis and taking informed decisions," ICAI President M Devaraja Reddy said.

He said the Railways approached the institute to undertake the pilot project on 'Study of Existing Budgeting and Costing System and proposal for Outcome Budgeting and Integrated Cost Accounting Architecture in the line of Indian Budget Announcement 2015-16'.

It undertook the job and a concept paper on outcome budgeting has been submitted to the railway authorities, he said.

"The project aim is to analyse the costs and to arrive at concrete scientific data," Reddy said.

The regulatory body of the accounting professionals also said the new examination system for admission to CA course would do away with the existing pattern of common proficiency test. The new system is expected to be effective from next November.

"In the admission test, there will be 200 marks for objective type questions and 200 marks for subjective questions to produce competent professionals and ensure quality," Reddy said.

Under the existing pattern (of admission test), students are depending too much on private coaching centres, he said.

The institute is now in the process of preparing the syllabus for each subject and a transition scheme will be drafted for the existing students.

The government-approved scheme will be notified in the gazette for inviting comments over 45 days. Accordingly, the new scheme will be finalised.