Identifying MBAs as threat to CAs as professionals,
noted industrialist Kumar Mangalam Birla today asked the government to
implement IFRS (international financial reporting standard) with utmost care.
"CAs today
face top challenge from MBAs who are good at communication skills, know finance
and economy better," the Chairman of Aditya Birla Group said while
addressing the two-day All India Conference of Institute of Chartered
Accountants of India (ICAI) here.
Seeking steps to
re-orient the curriculum for CA courses, Birla said that having knowledge only
in accounting would not help the present day CAs to face the challenges. "MBAs
have an edge over CAs in many fields as the Indian economy is much closer to
the world economy now. As merger and acquisition are order of the day, CAs have
big roles to play," he said. Stating that the employers want new CAs to
become productive from day one, Birla suggested the CAs to
take leadership.
by virtue of their
quality and have knowledge over other matters besides accounting.
Birla, a chartered
accountant and an MBA himself, was not happy over the rate of pass percentage
of CAs. "The pass percentage during our time was 4 per cent. Now it is 17
per cent. The pass ratio should be 10 per cent," he remarked apparently
stressing the need for better products. To a query from participants at the
session, Birla said public analysts would misinterpret results and confuse
IFRS. "IFRS should be implemented very carefully," he said.
While the ministry of corporate affairs (MCA)
contends that the existing Indian Accounting Standards must converge with the
IFRS to increase the credibility of Indian companies globally, Birla felt it
might create confusion. As per an earlier roadmap laid by the MCA, companies
with a net worth of over Rs 1,000 crore were to converge their financial
statements as per IFRS from April 1, 2011. But the move hit roadblock in view
of opposition by some corporate houses, sources said.
Corporate affairs
minister Veerappa Moily, earlier this month, asserted that IFRS would be
implemented from April 1, 2013 to ensure that corporate biggies keep pace with
the changing times and global trends. Stating that IFRS should suit Indian
needs and not be based on the US disclosure model, Birla said public analyst
groups need to be educated on how to interpret numbers. Because of the policy
paralysis, the confidence of investors has been shaken, he said replying to
another question adding that decline in the FDI and insurance sectors was
result of such policy matters. On research and development (R & D), Birla
said: "R of R&D has not made much progress. Indian industries have
done much in development side.
Source: The Financial Express
Photo Courtesy : Google
No comments:
Post a Comment