I fully agree with the idea of implementing a common prepration and reporting system all over the world. But before implementing anything new, we must assure that what are the control points available in IFRS by which situation like "LEHMAN Brothers" can be forseen and corrective measures can be taken. IF anyone knows those control points available in IFRS, please share it. Hari Shankar Sharma, Sr.Manager(F&A) BOKARO STEEL PLANT,JHARKHAND.
Let us first analyse the need of IFRS in the Global accounting scenario. Lets take a practical live example as it happenned in our company. We were in need of huge funds which we were unable to raise in India so we went for ECB from an European Bank through a Zurich office, they had problems assessing our financials as it is prepared as per Indian AS. They demamnded a financial statements as per IFRS. This type of problem is common in all Companies in this modern era of globalisation. We have a need for common accounting practice. I strongly vote in favour of IFRS as I have faced the practical difficulty, it is the need of the hour. Affected persons may understand the need while those are still to come across such situation may appreciate the need. Thank You. Mathi Dada
I agree with the author's view that Indian accounting professionals must be represented in a global body that lays down standards. Maybe the insurance industry may do well not to take after the recommendations of IFRS, as the author has suggested. It is left to the industry and the regulator to take a call on.
But I disagree with the author on the point of inclusion of IFRS in the CA curriculum or as a training program. Such programs maximise the employment opportunities of the CA grads & practising professionals. If they are aware of global standards, they can participate better in the global job opportunities. There is nothing wrong in ICAI being a cheerleader for such standards, for it keeps in mind the best interests of the CAs.
Population based conclusions are not valid. What must be considered is the value of business that is carried out by that country. So in that front, India may be well represented by the one or two who participate. With growing business prominence it may do well to have a few more representatives. Does it matter if ICAI has ratified their participation or backed it?
These are effects of specialisation and globalisation.The dynamics of the financial world is now rendered so complex by financial engineering by th west that every proffessional body is very eager to imitate and adopt the mechanism to assume super power status akin to the US but they fail to understand that it will ultimately weaken the whole system and force them to discard it.In this era of social darwinism and narcissim the probability of success in the short term is higher in being selfish and its a trade of for the long term disaster.These compulsions are needed to realise the dangers of mediocrity.
(1) CA is a Professional Course unlike MBA. (2) CAs are guided by Code of Ethics, which are not in case of MBA. (3) Like Medical & Advocate, CA Course is for all who has high inclination/ thirst for knowledge. (4) Comparing CA Campus with MBA Campus is totally baseleess. Around 3000 CAs per annum are recruited at CA Campus. Whereas in all IIM, recritement are less than 50% of CA Campus. IN MBA(IIM), More & More experienced people, i.e, upto 5 years are taken so as to raise the salary. U cant compare the salary of a unethical Marketing person which is always linked to turnover. Anyone can fix any range of Salary subject to satisfaction of some condition, i.e, Turnover. Being a CA, I have come accross some of the IIM Guys, Who are there to Cheat public through innovating Scheme, i.e, never comply law in right spirit. It is mostly happen in case of Banking, Capital Market & Consulting. That is why these guys are recruited mostly in those field. Common people hardly understand this game. They learn these sort of games just to make profit for Company & for them. Long term implication of these practices need to be curbed by enhancing regulatory practices to curb these funds. I feel surprise, when i met a person completing his B.Tech from IIT & then MBA from IIM is developing Investment Strategy, & they promote lack of education for Customers.
Let me give some Concrete Examples:
(1) Using the term Rate of Interest by some private Banks & NBFCs. I have se
RE:Please Dont dare to Compare MBA with CA................
by raja tripathy on May 22, 2008 10:13 AM
Let me give some Concrete Examples:
(1) Using the term Rate of Interest by some private Banks & NBFCs. I have seen some Low grade MBAs with decent looks going to public that their Rate of interest is 2%, whereas its IRR is more than 35%.Nowhere, it is Compulsion to mention IRR. Now some of these these Private Sector Banks are making lobby to access Rural Market through Micro Finance & other modes just to replace the Money lenders by their as usual strategy. These Banks usually make their marketing through these Guys. They either deceive Regulator, or influence them .....which is also a Strategy they learn.
If i will tell about Capital Market...then u will astonish how much cheating are being made. Non -standardisation of Application Form & Collecting Signature from Clents without letting them know is the best strategy they adopt.
There must be a Debate on any issue from different perspective. In that context, Author has his own point of view.
Author must be appreciated for his point of view.
But my Opinion is somewhat different. We cant disregard Mobile Handset, Television, Watch etc. as we have not invented them. In similiar way, Can we disregard the harmonisation of Accounting Standard in the era of WTO, Globalisation & Liberalisation. Moreover, since long we had been adopting IAS in indian context. Can we impose Our Standard with International Body.
We should not feel embrassed by all these development. Only by adopting such, Indian Professional will become world Class.
RE:Healthy Debate ............
by PS Prabhakar on May 22, 2008 12:30 PM
Healthy debate is what I wanted to trigger. My viewpoint was missed to be seen in the right perspective by a few. Unfortunately, comments had been hurried off without completely understanding the various perspectives by a few, some bordering in disrespect to the fellow members. Secondly, a few have merrily hijacked the discussion to different planes such as CA Vs Cost Accountants or CAs Vs MBAs etc. I think we should retain the discussions at matured levels and even while criticising, refrain from using derogatory or sarcastic terminologies. This is my humble request to one and all. I am willing to take all the viewpoints and even correct mine, if the contrary arguments are convincing. In the same way, I am also willing to address all the counter points and give my reasoning to what I hold as my views. The opportunity to air our views in public forums such as this should be used responsibly.
RE:Healthy Debate ............
by Saty Narayan Prasad on Jul 07, 2008 08:51 PM
In a knowledge world, logic prevail. In a democratic world majority (i.e. Number) prevail. Had India or ICAI done so much R&D in accounting & Finance to formulate such standards? I think, a big NO. Then how can we set such standard? Yet we may seek some representation in the ratio in world economy.
The writer seems to be living in his little oyster all his life. The world has changed and to be in sync and for the international community to have some regard for financial statements prepared by Indian accountants, we have to align our standards with those followed internationally. Even China is moving towards IFRS. Unlike science, auditing is an art. As long as IFRS retains a principles based approach and avoid the pitfalls of a ruled based approach like in US GAAP, I don't see why there should be any objections to following global conventions in accounting.
