ICWAI president Dhananjay V Joshi feels that India could be a leader in accounting.

Excerpts from the interview with Rayana Pandey.

What is the structure of the course at ICWAI?

The ICWAI course consists of 16 subjects in two courses � intermediate and final course. A graduate from any discipline can get admission in ICWAI. An undergraduate has to undergo a foundation course. The foundation course provides basic knowledge in subjects like accounting, economics, law and business mathematics.

The intermediate course is aimed at developing sound understanding of practices of accounting, cost accounting, taxation and auditing whereas the final course is about developing skills in financial management, project management, capital market analysis, valuation of business, strategic decision making, cost audit and management audit.

What is the objective of the course?

The objective of the course is to impart education and training to students about the principles and practices followed in the field of accounting including auditing and taxation, building analytical capabilities for providing support services to management in strategic decision making involving complex parameters of business system.

What are the prospects of this course?

Cost and management accountants are concerned with the economic management of corporate enterprises, based on cost technology, resource management and management accounting. They are very much sought after by the corporate sector, as valued executives and consultants.

They also play an important role in the government sector, service sector and other sectors of the economy. Thus, this brand of profession has a huge potential to contribute to the growth of Indian industries and make the it globally competitive.

What changes are proposed in your curriculum?

The changes proposed in the ICWAI syllabus are aimed at bringing the curriculum in parity with the modern day professional requirements of cost and management accountants across the globe, and to follow the international educational guidelines of the International Federation of Accountants.

The curriculum focuses on conventional subjects like accountancy, cost & management accountancy, direct and indirect taxation but also contain new subjects such as valuation of business, corporate securities, six sigma, balance score card, and new economic legislation like anti dumping. We are also making practical training mandatory for students. This will make our professionals productive without any gestation period.

What are the reasons behind the changes in the curriculum?

The field of cost and management accounting has undergone changes to adapt to the need of the industry. The institute undertakes periodic revision of the syllabus to update the course content to match with the skill requirements of the industry.

The primary reason of changing the curriculum at this juncture is to incorporate new tools and techniques of management accounting developed in the world and bring in the skills of managing the information in a more scientific way with the help of Information Technology tools.

Moreover, steps have been taken to improve the skills of Indian cost and management accountants so as to have better recognition for trade in services under the WTO.

How is the course adapting to the new accrual based accounting?

Accrual based accounting is a superior method which correctly reflects the financial results of a business. Cost accounts are based only on accrual based accounting. Cost accounts consider the income and expenditure relating to a product or service for a particular period while working out the profitability of various products and services.

Are the ICAI graduates recognised the world over?

Our graduates are recognised by leading institutes of management accounting in the world like Certified Institute of Management Accountants, UK; Institute of Management Accountants, US; Certified Management Accountants, Canada among others.

In other institutes our graduates are given exemptions in various subjects for passing their examinations. We are in the process of Mutual Recognition Agreement (MRA) with these institutes. More effective steps will be taken after the new syllabus is implemented.

Is the difference between the curriculum of ICWAI and foreign nations too vast?

Our course lays more emphasis on theoretical aspects and building analytical capabilities. The focus of management accounting institutes of developed countries is on developing skills for strategic decision making.

Through syllabus revision and introduction of better training facilities, the gap will be minimised.

According to our syllabus, students are also performing various statutory functions under the Companies Act etc.  In fact our course is more exhaustive than that of the foreign countries.

What is the scope for outsourcing in accountancy?

Our graduates are also working in BPOs, which provide services in the field of accounting. Many are employed in foreign countries as well.

As far as trade in in accounting sector under Mode-3 (movement of natural persons) is concerned, the Indian accounting sector is not interested in opening up because of certain constraints faced by it in a reciprocal arrangement.

Taking into account our level of skills and the cost of manpower, we have a great competitive advantage in outsourcing. What is needed is better exposure and continuous interaction with global accounting bodies.

What are the issues the institute is dealing with in the current academic session?

Being a self financing body, the resources are to be generated on our own. The focus is on strengthening the financial position of the institute which has been achieved in 2006-07.

This strength will enable us to undertake various socially desirable projects and both fundamental and applied research work in cost and management accounting. A new research centre is coming up at Navi Mumbai shortly. The institute has set up centres of excellence at various places, which are devoted to the advancement of cost and management accounting.

Cost accounting standards are also being issued by the institute to achieve uniformity in accounting. Recently, the South Asian Federation of Accountants resolved to set up a centre of excellence in cost and management at ICWAI in Delhi. This will further strengthen out ties with professionals.