Cabinet Approval on Renew of MoU Between ICAI & ICAEW

Prime minister Narendra Modi Headed the Union Cabinet on Thursday, 7th March where the decision to approve both the following was taken:

• Ex-post facto of the Memorandum of Understanding (MOU) signed in 2008 and renewed in 2014 between the Institute of Chartered Accountants of India (ICAI) and Institute of Chartered Accountants in England & Wales (ICAEW).
• The Renewal of the Memorandum of Understanding between the Institute of Chartered Accountants of India (ICAI) & The Institute of Chartered Accountants in England & Wales.

Benefits of Approving the Same:

• The approval will strengthen the Accounting, Financial and Audit knowledge base within the UK through this MoU.
• This will serve the motivation mechanism to the young Indian Chartered Accountants to pursue the recognized ICAEW profession to further open the gateways to professional opportunities in the UK.
• This will emerge more recruitment opportunities for Indian Chartered Accountants in the UK as they are already top performers of companies of UK and the ICAEW recognition will serve those to be honored by the Corporates of UK.

Major Impact:

The goal behind the approval is to work jointly and serve each other. This will assure collective benefits to the members, students, and their organizations. MoU aims to deliver the highest quality professional educations & internationally recognized degrees to the students. The MoU wants both of its accountancy institutes to play a leadership role on the global stage by intelligently dealing with the new challenges of the profession.

ICAI is playing an important role in the United Kingdom and carries a significant Chapter in the UK namely, UK (London). Chapter of ICAI is one of the largest and most active chapters of the 21 overseas chapters of ICAI and has more than 600 registered members.

Implementation Strategy and Targets:

The MoU is relevant to nearly all the certified and trained ICAEW members, without in relevance to the syllabus of the membership of homebody.

This will enhance qualifications and the CPD responsibilities upon members to keep up to date and, additionally, to describe whether practising and auditing rights will be available upon joining an institute and, were not, to outline the route of re-qualification through additional examinations and work experience that would be necessary to achieve. This MoU & its provision does not hold any intention to legally binding rights, obligations or liabilities.

Point-Wise Details:

• Cabinet granted approval for the Ex-post facto approval of the Memorandum of Understanding (MOU) signed in 2008 and renewed in 2014 between the Institute of Chartered Accountants of India (ICAI) and Institute of Chartered Accountants in England & Wales (ICAEW).
• Approval granted for the Renewal of the Memorandum of Understanding between the Institute of Chartered Accountants of India (ICAI) & The Institute of Chartered Accountants in England & Wales.

The goal behind the approval is:

• Building a mutually beneficial & cooperative framework
• Imparting an advanced accounting knowledge & skills
• Professional and intellectual evolution
• Enhancement of the interests of the respective members
• Optimistic contribution in the development of the accounting profession in England, Wales and India as well.
• Knocking career opportunities for Indian CA’s in UK.

Background:

The Institute of Chartered Accountants of India (ICAI) is an Indian statutory body founded under the Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949) for the management and governance of chartered accountancy profession in the country. The recognized institute contributes in the lines of education, professional development, maintenance of high accounting, auditing and ethical standards.

The Institute has its Headquarters at New Delhi, in addition to the 5 Regional Offices situated at Mumbai, Chennai, Kanpur, Kolkata, New Delhi and 114 branches across the country. Further, it has also set up 18 chapters outside India.