As the old adage goes … All good things have to come to an end. That was the case with 21st World Congress of Accountants that concluded yesterday at the world-class Jio World Convention Centre, Mumbai. We witnessed another day of rousing oratory & thought leadership, led by Industry legend & HDFC Chairman Mr. Deepak Parekh. He too exuded bullishness on the Indian economy and being a Chartered Accountant himself, had some sagely words of advise for the thousands of delegates in the conference hall, exhorting them to follow "common sense principles of accounting". His parting words were music to ears of everyone in audience : "In 50 yrs of working life, I have never been more optimistic (on India) than today."

Another unmissable session yesterday was the one on “Chief Value Officers - Championing an Integrated Mindset to drive Sustainable Value Creation". Hindustan Unilever CEO Mr. Sanjiv Mehta, himself a CA, spoke of how the CFOs must help the businesses grow while creating sustainable value and elaborated upon the role of finance professionals viz. creating value and protecting value. Mr. Raj Mullick (SVP & Chief Accounts Officer, Reliance Industries) & Mr. Charanjit Attra (CFO, SBI) shared valuable insights on inculcating a ‘sustainability mindset’ as well as how CFOs can be game-changers.

Click here to read the highlights from the final day of the 21st World Congress of Accountants.

If there was one thing that was crystal clear from the deliberations at the World Congress, that was on the future of the profession which is poised to be very different from the present. Data-driven accounting practices, technology emerging as an able partner for accountants, sustainability reporting taking centre-stage, global standards very much here to stay, and lots more …. We caught up with Mr. Vaibhav Manek (Senior Partner, KNAV) to discuss these topical themes and what the future of the accounting profession looks from his prism. Click here to view the interview.

And to round-off our coverage of the World Congress, two more interviews - Mr. Surendra Choudhary (Partner & Head, Business Services & Outsourcing, BDO India) & Mr. Aleem Lilani (Director, Audit & Assurance, M S K A & Associates - A Member Firm of BDO International) click here and here to view the same.

Day 3 of the 21st World Congress of Accountants (WCOA) witnessed sizzling deliberations across sessions, which were spread over a mix of varied themes spanning from entrepreneurship, taxation, reporting, assurance, wealth creation & much more, as delivered by prolific speakers across the country. We are glad to bring to you the summarized excerpts from few key sessions.

Click here to read key highlights from Day 3 at the 21st World Congress of Accountants!

Sr. Adv. Arvind Datar spoke with Taxsutra Group Editor Arun Giri on the changing tax landscape, litigation pile up and the impact of recent Apex Court judgment on charitable trusts. Click here to view Mr. Datar’s interview.

Sustainability Reporting, the dominant theme of the World Congress, continues to drive the discussion here. Mr. Amit Mitra (Partner & Leader (North), Audit & Assurance, M S K A & Associates – A Member Firm of BDO International), tells us why we all need to take this topic seriously and by when Sustainability Reporting Standards will fructify… sooner than we all think! Click here to view Mr. Mitra’s take.

He is one of the most talked about Corporate Honcho in recent times… someone whose meteoric success and dominant market share across sectors, has positioned him amongst the richest persons in the World. You guessed it right… we are talking of Mr. Gautam Adani, whose key-note address yesterday at the 21st World Congress of Accountants giving a clarion call for India as an Economic Super-power, set the stage on fire! His quip that resonated with the 6000 delegates in attendance at Jio World Convention Centre - “ If ever there was a time to be Indian, it is NOW. “

Click here to read excerpts from Mr. Adani’s rousing address as also summaries of the technical sessions on Day 2 of the 21st World Congress of Accountants!

The Congress theme - "Building Trust, Enabling Sustainability" has generated a lot of curiosity. But what will take it to build an effective eco-system for Sustainability Reporting? BDO UK Partner David Isherwood & Vishal Divadkar (Partner & Head, Audit & Assurance, M S K A & Associates – A member firm of BDO International), in a conversation with Taxsutra Group Editor Arun Giri, give some insights on this topic. Click here to view the video. 

Another talk that was being watched with interest - NFRA Chairman Mr. Ajay Bhushan Pandey’s speech and what would he have to say on the Auditing Profession. While there wasn't any red flag raised by him, he did emphasise on auditors’ independence. He also referred to a new concept that caught the attention of auditors in the audience - an innovative method of crowdsourcing of risk identification through the shareholders, that according to him, will not only help meet the expectation gap of the shareholders but also empower and strengthen the auditors to look into several areas which the ‘conflicted management ‘ may not ideally want them to look into. And we got some quick reactions from renowned auditors - Mr. P. R. Ramesh (Independent Director on several large listed cos) and Mr. Pankaj Jain (Managing Partner, Khandelwal Jain & Co.) on the NFRA Chairman’s speech. Click here to view the video.

And for a round up of the action on Day 2 of 21st World Congress of Accountants 2022 with KNAV UK Partner Mr. Devendra Kankonkar. Click here to view the video. 

'Athithi Devo Bhava' (Guest is akin to God) has been our age old mantra. The glitzy Opening Ceremony of the 21st World Congress of Accountants, being hosted in India & by ICAI for the first time, showcased the diverse culture of India. Once the dance medley had the audience in raptures and on their feet, it was time for some serious discussion on the Congress theme - Building Trust, Enabling Sustainability.

In her key-note address, Finance Minister Mrs. Nirmala Sitharaman kept a laser sharp focus on 'Sustainability Reporting', the 3 Ps - People, Profit & Planet and exhorted the World Congress to come up with formulations for better governance. Hon. Lok Sabha Speaker Shri Om Birla, in his address to the delegates, was effusive in his praise for Chartered Accountants, highlighting the examination pattern of ICAI as being highly reliable, thereby bearing testimony to its integrity and credibility. Mr. Alan Johnson (President, International Federation of Accountants (IFAC)), spoke on the importance of IFAC as global convenor for professional standards and as for the Congress theme, quipped - "Our planet is high on WCOA agenda." ICAI President Mr. Debashis Mitra & Vice-President Mr. Aniket Talati welcomed the delegates, expressing satisfaction at the scale of the Congress, that is witnessing participation of over 6000 delegates from 105 countries. 

The first panel focused on the theme - 'Accountancy Profession: Trusted Partner in Sustainability & Society.' 

Click here to read Greentick's session-wise summaries of deliberations on the Opening day at the World Congress, as also Mr. Vishal Divadkar (Partner & Head, Audit & Assurance, M S K A & Associates – A member firm of BDO International) and Ms. Hemlata Jhawar's (Partner, KNAV) expert take on the day's proceedings

While there are a myriad themes which shall be deliberated upon at the World Congress, Mr. Sanjiv Chaudhary (Partner & Leader, Strategic Accounts – North, Clients & Markets, BDO India) gives us his take on three particular topics that he is interested to hear from regulators and professionals at the 4-day mega-event at Mumbai.

Click here to view the three topics Mr. Chaudhary is looking out for during the Congress.

While there are a plethora of technical sessions at the World Congress, Ms. Srividya Vaidison (Partner & Leader (West), Audit & Assurance, M S K A & Associates) gives us her take on one particular technical session that she is rooting for during the 4-day marquee event at Mumbai.

Click here to view the one session Ms. Vaidison is explicitly rooting for during the Congress.

In the USA, the Securities and Exchange Commission (SEC) requires that all entities that are publicly held must file annual reports with it that are audited. This also means that the Companies that are not public will not require mandatory audit. However there are many instances in which the audited financial statements are required even for non- public company such as corporate governance requirements or in case of subsidiary of public listed company of India to meet stock exchange requirements, for filing annual performance reports (APR) with Reserve Bank of India or any of the regulatory requirements depending on the state business licensing requirements. In the USA, audit services are provided by Certified Public Accountants (CPAs) or firms of Certified Public Accountants who are licensed by the respective state board of accountancy. Against this backdrop, the KNAV Team pens down an article covering the themes of (i) requirement for audited financial statements in the USA, (ii) audit services in the USA, (iii) applicable Accounting Standards in the USA, (iv) alternatives other than audits & (v) selection of CPA firm.

Click here to read this incisive article by Team KNAV

Taxsutra Greentick’s Editorial Team brings to you a comprehensive compilation titled “Recent Key Developments - An Exclusive Compilation”, wherein recent pertinent Indian news updates are braided in a single document, in a lucid manner, to facilitate users to access the key developments at one place. The news updates are linked to the Taxsutra Greentick portal, for easy access to the descriptive and detailed update.

Click here to read this one-of-a-kind Compilation.

While there are a plethora of technical sessions at the World Congress, Mr. Vishal Divadkar (Partner & Head, Audit & Assurance, M S K A & Associates - A member firm of BDO International) gives us his take on the sessions to watch out for during the 4-day marquee event at Mumbai. 

Click here to view Vishal Divadkar's picks.

In 2021, SEBI announced Business Responsibility & Sustainability Reporting (BRSR) requirements to the top 1,000 listed companies by market capitalization (voluntary for FY 21-22 and mandatory from FY 2022-2023). In this context, there is an increasing acceptance of non-financial reporting in India considering the regulatory push on listed entities to report on BRSR and also the push from the investor community to mandate private companies (investees) to have sustainable business models, which in turn results in investees reporting on their compliance with this requirement. In this article, authors Mr. Pradeep Suresh (Partner - MSKA & Associates – A Member Firm of BDO International) with contributions from Mr. Nishit Jain decode the recent developments in sustainability reporting in India.

Click here to read this insightful piece by Mr. Pradeep Suresh.

Recently, India has evidenced amendments in various regulations to increase the transparency in functioning and enhancing the quality of Financial Reporting. In this context, authors Ms. Padmashree Crasto (Partner, M S K C & Associates) with contributions from Mr. Aleem Lilani and Mr. Mayank Parekh highlight few of the recent regulatory changes from SEBI and their effects on the listed entities they regulate, in a step towards better governance and compliance.

Click here to view this special article!

In October 2021, 137 countries out of 141 Organization of Economic Co-operation and Development (OECD) / G20 member countries agreed to implement a minimum 15% corporate tax rate for multinational entities (global turnover over Euro 750 million) as a part of the two pillar approach of OECD’s ground-breaking taxing the digital economy framework. A global deal has been announced between 137 countries, including India, to ensure large MNEs pay a Global Minimum Tax (GMT) rate of 15% by the OECD. Since 2017, the G20 / OECD inclusive framework on Base Erosion and Profit Shifting (‘BEPS’) has been jointly developing a Two-Pillar Solution to address the tax challenges associated with digitalization. At present, the consenting governments are discussing implementation plans. In this article, the KNAV Team throws light on the following subject, by touching upon the following points, (i) Why should there be a Global Minimum Tax?, (ii) What is the proposed tax structure?, (iii) Reallocation of a residual profit to market jurisdictions (Pillar One), (iv) Global minimum tax (Pillar Two) & (v) Tax policy implications of a global minimum tax.

Click here to read this incisive article by Team KNAV.

The MCA issued notifications dated 24 March 2021 to amend Schedule III to the Companies Act, 2013 read with Companies (Accounts) Rules, 2014 and Companies (Audit and Auditors) Rule, 2014. The main aim of the amendments in Schedule III is to improve the transparency in the financial statements of a company. Next, Company Auditor’s Report Order (CARO) 2020 is the new format for the issue of audit reports, in case of statutory audits of companies under the Companies Act, 2013 which includes the additional reporting requirements after consultations with NFRA.  Its main motive is to enhance the overall quality of reporting by the company auditors.

In this dossier, the authors Ms. Padmashree Crasto (Partner, M S K C & Associates) with contributions from Mr. Aleem Lilani and Mr. Mayank Parekh outline the key amendments in Companies Act, 2013 including Schedule III, as also throw light on the key new clauses brought about by CARO 2020.

Click here to view this special article!

Business digitalization is the use of digital technologies to change a business model and enhance the value. Recent surge in accessibility of data has led to rapid advancements in digital technologies, which are transforming economies, societies, and businesses. Automation and robotization of routine accounting processes, the introduction of business intelligence, and the application of data analytics are among the results of digitalization in the accounting function.

In this context, the KNAV Team brings to you an article centered around this theme, focusing on the twin aspects of (i) Service Delivery & (ii) Practice Management (by touching upon efficiency optimization, sector-specific support & easing out deadline pressure); which “leaders of accounting firms look at ….of the business when considering the future of accountancy firms”.

Click here to read this incisive article by Team KNAV.

In this analytical piece, Mr. Mukund M. Chitale (Former ICAI President and Former Chairman, NACAS) traces the journey and evolution of accounting & auditing standards. Mr. Chitale in this reflective yet futuristic piece, covers lot of ground including Ethics & Accounting Standards, (Off Balance Sheet Items, Constant Changes in Standards, Interplay if any between Accounting & Business Objectives , Documentation, Quality Control Standards and lots more.

Click here to read this insightful piece by Mr. Mukund M. Chitale.

In the year 2011, the core committee of MCA had requested ICAI to examine whether there should be one set or two sets of Accounting Standards and whether one set of Accounting Standards can be applied for all companies including one person companies and small companies. The ICAI, after an in-depth examination and study, recommended that there should be two sets of Accounting Standards - one set comprising Ind AS for large, public interest companies and the other set containing simplified measurement principles with fewer disclosure for small companies. It was also mentioned that a second set of standards does not mean that the recognition and measurement principles would be significantly different from Ind AS in cases.

Against this backdrop, in this incisive piece, authors, CA. (Dr.) Anand J Banka & CA. Kali Charan Sharma shed light on the following aspects, (i) roadmap in light of ICAI’s approach paper titled “Accounting Standards for Resurgent New India of 2020’s”, (ii) Benefits of Second set of Accounting Standard, (iii) Approach for Disclosure Requirements, (iv) Preparedness of Proposed Standard & in the concluding part, the authors address the million dollar question of, (v) Are we Ready?

Click here to view this special article!

As the global community grapples with issues of rapid urbanization, resource constraints, climate change, the COVID-19 pandemic and more, sustainability is no longer just a topic of hypothetical consideration, but a necessity for the sustenance of the human race on planet Earth. Further, the climate crisis is among the top sustainability issues in current times. With the Paris Agreement of 2015 and the Conference of Parties’ (COP) broader agenda, the onus falls upon not just the governments of the nations, but also on the private and public entities to work towards a sustainable future for all. As organizations pursue their sustainability journey, trust-building has become a critical component.

In this context, Mr. Dipankar Ghosh (Partner & Leader, Sustainability & ESG, BDO India) with contributions from team members Ms. Ishita Bhartia and Ms. Prachi Majumdar pens down an incisive article on the theme of ‘Building Trust – Organisation’s Key Enabler in the Sustainability Journey’. In this incisive article, the authors throw light on the following themes. i.e  a) Trusted partner in sustainable development; b) Increased transparency through quality sustainability disclosure & c) Enhancing trust and confidence in sustainability information.

Click here to view this special article!

Sustainability disclosures are now becoming essential to a company’s operational and financial performance, given that investors are increasingly gravitating towards sustainability & ESG focused companies and are seeking actionable information about the sustainability measures taken by them. The rising importance is spurring the shift towards better reporting practices and standardization. In this context, to facilitate companies in generating reliable, transparent performance, the Sustainability Accounting Standards Board (SASB) provides data standards and reporting frameworks as a step toward resolving the sustainability reporting issue.

KNAV Team brings us article centered around this theme, focusing on the following aspects : 

1.    Sustainability Accounting Standards Board and its Standards

2.  Tabulation of disclosures w.r.t sustainability issues under SASB materiality map, relating to environment; leadership and governance; business model & innovation; social capital; & human capital respectively

3.    Growing prevalence of SASB  

4.    Chart showcasing ‘acquired assurance or verification’

Click here to read this incisive article by Team KNAV. 

During the period in 2007-08, many jurisdictions in the Asian-Oceanian region had adopted or converged with the International Financial Reporting Standards (IFRSs) while many others had announced convergence with the IFRSs with time-tables or roadmaps. In the context of increasingly globalised financial reporting standards, it was necessary for the Accounting Standard-Setters in the region to establish a platform to discuss problems, issues and share experiences in the convergence process and make contribution to a single set of high-quality global accounting standards. Accordingly, Asian-Oceanian Standard-Setters Group (AOSSG) was established in 2009. The Institute of Chartered Accountants of India (ICAI) is a founder member of the Group.

In this comprehensive piece authored by Former Chair of AOSSG  CA. (Dr.) S B Zaware touches upon:

1. Objectives of AOSSG
2. ICAI & AOSSG
3. IFRS in Brief
4. IFRS Standard-Setting Process
5. How AOSSG Helps in IFRS Standard-Setting Process
6. ICAI’s Exposure, Experience, & Achievements as AOSSG Chair

Click here to read this insightful piece by CA (Dr.) S.B. Zaware 

Increasing business needs, cross border transactions and investments calls for quality financial reporting to help build confidence among investors and disseminate accurate information. However, due to past experiences of manipulated accounting information, reporting has recently been under enhanced scrutiny of regulators. Good regulation is essential to the fairness, efficiency, and effectiveness of an economy. Though the regulatory role is entrusted to merely a handful of entities in every jurisdiction, ensuring compliance should be a collective responsibility of entities, auditors and regulators in general.

Specifically, w.r.t India, in recent times, regulators such as the ‘National Financial Reporting Authority (NFRA)’ and the ‘Securities and Exchange Board of India (SEBI)’ have also become extremely vigilant w.r.t ensuring compliances with accounting and auditing principles and practices.

Against this backdrop, as part of its pre-conference editorial coverage and based on the broader theme - ‘Building Trust Enabling Sustainability’ of ICAI’s 21st World Congress of Accountants (to be held in Mumbai from 18th to 21st November), Taxsutra Greentick (India’s First Accounting & Ind-AS Platform) is delighted to bring to you an incisive article-series titled ‘Compliance: A Collective Responsibility’ which emphasizes upon India’s redefined regulatory framework, viz. how different oversight bodies perform their regulatory roles in India w.r.t accounting, reporting and auditing; major non-compliances pin-pointed by them; expectations of investors/ stakeholders and the need for quality reporting.

In Part 1 of the aforesaid article-series, titled ‘ICAI: A Robust Regulator’, we bring to you our insights on how ICAI observes its regulatory role in India by performing different regulatory activities, viz.

i.  Financial reporting review

ii. Audit quality review

iii. Peer review

iv. Audit quality maturity model

This article has been reviewed by Accounting Expert Dr. Anand Banka.

Click here to read Part 1 of the aforesaid article-series, titled ‘ICAI: A Robust Regulator’.