Institute of Cost and Works Accountants of India

The Institute of Cost and Works Accountants of India (ICWAI) is a premier professional accountancy body established on May 28, 1959 under the Cost and Works Accountants Act, 1959 (Act No.23rd of 1959) enacted by the Parliament of India

Parliament of India

The Parliament of India is the supreme legislative body in India. Founded in 1919, the Parliament alone possesses legislative supremacy and thereby ultimate power over all political bodies in India. The Parliament of India comprises the President and the two Houses, Lok Sabha and Rajya Sabha...

to regulate the profession of Cost Accountants in India

India

India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

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The ICWAI is a Founder Member of the International Federation of Accountants

International Federation of Accountants

International Federation of Accountants is the global organization for the accountancy profession. IFAC has 164 member and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants employed in public practice, industry and commerce, government, and academe...

(IFAC), Confederation of Asian and Pacific Accountants (CAPA) and South Asian Federation of Accountants (SAFA). ICWAI is a member of the National Foundation of Corporate Governance(NFCG). The headquarters of ICWAI is situated in Kolkata, and operates through its four regional councils located at Kolkata, Chennai, Delhi and Mumbai, 94 chapters in India and 7 chapters abroad.

History

ICWAI was incorporated under the Cost and Works Accountants Act, 1959 and was accorded statutory recognition with the objectives of promoting, regulating, and developing the Profession of Cost & Works Accountancy in India.

Objectives

Objectives of ICWAI are to promote and develop the adoption of scientific methods in cost and management accountancy for management control. It develops the professional body of members and equips them fully to discharge their functions as professional Cost & Management Accountants. ICWAI helps its members to keep abreast with latest developments in the field of cost and management accounting.

Cost & Management Accountants (CMAs)

This is the primary qualification of the ICWAI 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 January 2008 following the International Education Guidelines (IEG) of IFAC
IFAC
IFAC may refer to:* International Fine Arts College* International Federation of Accountants* International Federation of Automatic Control* Irvine Fine Arts Center* Irish Farm Accounts Cooperative...

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
Management accounting
Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control...

, Financial Accounting, strategic management
Strategic management
Strategic management is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of ﬁrms in their external environments...

, taxation , corporate law
Corporate law
Corporate law is the study of how shareholders, directors, employees, creditors, and other stakeholders such as consumers, the community and the environment interact with one another. Corporate law is a part of a broader companies law...

, financial management
Managerial finance
Managerial finance is the branch of finance that concerns itself with the managerial significance of finance techniques. It is focused on assessment rather than technique....

, business valuation
Business valuation
Business valuation is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to consummate a sale of a business...

, financial reporting and cost & management audit etc.
Students who have passed degree examination of any recognized University
University
A university is an institution of higher education and research, which grants academic degrees in a variety of subjects. A university is an organisation that provides both undergraduate education and postgraduate education...

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
Institute of Company Secretaries of India
The Institute of Company Secretaries of India is statutory professional body constituted under the Company Secretaries Act, 1980 passed by the Parliament of India. ICSI is the only recognized professional body to develop and regulate the profession of Company Secretaries in India...

Final Examination.
Examinations are held twice a year in June and December in various examination centres in India and overseas centres at Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...

and Muscat
Muscat, Oman
Muscat is the capital of Oman. It is also the seat of government and largest city in the Governorate of Muscat. As of 2008, the population of the Muscat metropolitan area was 1,090,797. The metropolitan area spans approximately and includes six provinces called wilayats...

.

A student has to successfully pass three levels of examination and complete three years of practical training to be eligible to apply for Associate membership of the Institute.

Certificate in IFRS Convergence

In order to equip its members with the knowledge of International Financial Reporting Standards (IFRS) which is scheduled to be introduced in India in the near future, ICWAI has introduced the "Certificate Course on International Financial Reporting Standards(IFRS) Convergence'.
http://icwai.ifrseacademy.com/

Certificate in Accounting Technicians (CAT)

The Certificate Course in Accounting Technicians (CAT) was launced by ICWAI in year 2009. This is one year course that comprises examinations, computer Training, practical training and orientation training programmes. The main objective of CAT is to develop among the students the necessary skills required to apply theoretical knowledge of accounting to practical situations in different functional areas of accounting.The CAT Course comprises two levels namely Level-I & Level -II and a CAT aspirant is required to complete both the examinations for obtaining CAT Certification.

Diploma in Management Accountancy (Dip. MA)

The Management Accountancy Examination is a post-membership examination. Only Members of ICWAI who have completed at least a period of one year's Associateship are eligible for admission to this examination. This is a research oriented Programme in two parts. Part I consists of two groups and Part II requires for submission of a Dissertation followed by Viva-voce. On completion of the referred Programme, a candidate is eligible to use the letters-"Dip. Ma" after his or her name.

Membership

According to Sec 2(b) of CWA Act 1959, “Cost 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

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

After admission to membership, members are entitled to use the letter AICWA after his name to indicate that he or she is an Associate Member of the ICWAI.

Fellow Member

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 ICWAI.

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 FICWA after his name to indicate that he is a Fellow of the ICWAI.
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"

Graduates of ICWAI

In the first instance, an individual registers as a student. Upon successful completion of Final Examination, student applies for graduate status of the Institute. He/she shall be entitled to use letter Grad.CWA after his/her name. Grad. CWAs should apply for associate membership after they have gained relevant practical experience as prescribed by the institute.

Practice as Cost & Management Accountant

To practice Cost and Mangagement Accounting in India, either individually or in partnership with one or more practicing member(s) of the institute it is necessary to obtain the Certificate of Practice from the Institute of Cost and Works Accountants of India.

http://members.icwai.org/members/members-avenues.asp

Cost Accounting Standards and Management Accounting Guidelines issued by ICWAI

The Council of the ICWAI at its 2511st 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 13 Cost Accounting Standards and 4 Management Accounting Guidelines have been issued by the Institute.

Cost Accounting Standards

CAS1(Final)

Classification of Cost
For preparation of Cost Statements Assessment of excise duty and other taxes, anti-dumping measures, transfer pricing etc.

CAS2(Final)

Capacity Determination For determination of capacity
Proper allocation, apportionment and absorption of cost.

CAS3(Final)

Overheads under revision
For Collection, Allocation, Apportionment and Absorption of overheads
Determining Cost of products, services or activities

CAS4(Final)

Cost of Production for Captive Consumption To determine the assessable value of excisable goods used for captive consumption.Determining Cost of products, services or activities

CAS5(Final)

Average (equalized) Cost of Transportation To determine averaged/equalized transportation cost Calculating the amount of deduction from assessable value of excisable goods, freight subsidy, Insurance claim valuation, etc

CAS6(Final)

Material Cost To bring uniformity and consistency in the principles and methods of determining the material cost with reasonable accuracy in an economically feasible manner. Applicable to all cost statements which require measurement, assignment, classification and presentation of material costs. To be followed in all cost statements requiring assurance including attestation.

CAS6 Draft Guidance Note

The Secretariat of the CASB of ICWAI has drafted the Initial Draft of Guidance Note on Cost Accounting Standard - 6 on Material Cost (CAS - 6). The proposed initial draft shall be modified in light of comments received before being forwarded to the Cost Accounting Standard Board for consideration.

Link: Guidance Note on CAS 6 Draft

CAS7(Final)

Employee Cost To bring uniformity and consistency in the principles and methods of determining the Employee cost with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Employee cost including those requiring attestation

CAS8(Final)

Cost of Utilities To bring uniformity and consistency in the principles and methods of determining the Cost of Utilities with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Cost of Utilities including those requiring attestation

CAS9(Final)

Packing Material Cost To bring uniformity and consistency in the principles and methods of determining the Packing Material Cost with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Packing Material Cost including those requiring attestation

CAS10(Final)

Direct Expenses To bring uniformity and consistency in the principles and methods of determining the Direct Expenses with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Direct Expenses including those requiring attestation

CAS11 (Final)

Administrative Overheads To bring uniformity and consistency in the principles and methods of determining the Administrative Overheads with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Administrative Overheads including those requiring attestation

CAS12 (Final)

Repairs And Maintenance Cost To bring uniformity and consistency in the principles and methods of determining the Repairs and Maintenance Cost with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Repairs and Maintenance Cost including those requiring attestation.
CAS13 (Final)
Cost of Service Cost Centre
To bring uniformity and consistency in the principles and methods of determining the Cost of Service Cost Centre with reasonable accuracy.

Applicable to the preparation and presentation of cost statements, which require classification, measurement and assignment of Cost of Service Cost Centre, including those requiring attestation

http://www.icwai.org/icwai/members-resources.asp?type=CAS

Expert Group Recommendations

The 13-member expert group composed of representatives from three Professional Institutes namely—ICWAI, ICAI and ICSI—Industry Body CII and market Regulator SEBI, have recommended that all companies whose turnover is more than Rs 50 crore should be mandated to maintain cost audit books. .

In its recommendation, the group also mentioned that companies should be allowed to maintain their own cost accounting records in accordance with CAS issued by the ICWAI.

Expert Group Report
An expert group was constituted by the Ministry of Corporate Affairs under the Chairmanship of Shri BB Goyal, Advisor Cost. The Expert Group reviewed the existing Cost Accounting Records Rules, Cost Audit Report Rules and Cost Accounting Standards. The group has submitted its report to the government.

Here is link for Expert Group Report

EXPERT GROUP REPORT

Cost-Accounting Standard on Climate Change

The Ministry of Corporate Affairs has asked the Institute of Cost and Works Accountants of India (ICWAI) to prepare such a Standard — the first of its kind even globally. This means companies will have to work out costs involved in adopting environment-friendly measures and disclose them.

Memorandum of Understanding

The Institute of Cost and Works Accountants of India (ICWAI) has entered into a Memorandum of Understanding (MoU) with the leading Management Accounting Bodies to enable Mutual Recognition and cooperation between 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 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 Srilanka.