Full Form of ICWA :
Institute of Cost and Works Accountant
ICWA Full Form is Institute of Cost and Works Accountant. It is currently known as ICAI or Institute of Cost Accountants of India. The primary objective of this professional institute is to regulate, promote, and develop Cost Accountancy as a profession. It is perhaps the only licensed body for cost accountancy management in India. ICWA was established in May 1959 and has its headquarters in Kolkata.
The course of ICWA is presently called as CMA, which means Cost Management Accounting. There are 3 stages to complete ICWA course which include CMA – Foundation, CMA – Inter and CMA – Final. Candidates who have passed HSC/ 12th Class (10+2) can enroll themselves into ICWA or CMA foundation exam. One can complete the entire course through correspondence or online through an accredited university. The foundation course lasts for 6 months and the intermediate program lasts for 12 months. This will be followed by 3-year management training and a 1-year final course.
ICWA Full Form – Additional Information
Institute of Cost Accountants of India, which was formerly known as the Institute of Cost & Works Accountants of India (abbreviated as ICWAI) is a prime statutory body that pertains to professional accountancy in the country. The object behind the foundation of ICWA is to oversee promotion, regulation, and development of professional cost accountancy in the country. It is the apex authority that provides licenses and regulations in respect of cost accountancy in the country.
It is the ICWA that makes recommendations on various standards to be adopted by various companies dealing in cost accountancy in the country. ICWA is entrusted with very important functions in respect of accountancy such as it is the responsibility of the institute to set up audit and assurance standards for the purposes of statutory Cost Audit that are to be observed in auditing of cost statements in the country. Apart from these, the ICWA is also responsible for the issuance of technical guidelines on various matters such as Management Accounting, and Internal Audit, etc, which are to be observed by the Chartered Accountants (abbreviated as CAs).
The institute discharges its functions with close association with several governmental departments, both at Center and State level, and several regulatory bodies of India such as the Insurance Regulatory and Development Authority (abbreviated as IRDA), the Reserve Bank of India (abbreviated as RBI), Securities and Exchange Board of India (abbreviated as SEBI) in matters concerning reporting and cost optimization. ICWAI has been credited to be one of the founding members of the International Federation of Accountants (abbreviated as IFAC), the South Asian Federation of Accountants (abbreviated as SAFA), and the Confederation of Asian and Pacific Accountants (abbreviated as CAPA).
The body is respected member of the National Foundation of Corporate Governance (abbreviated as NFCG). The ICWA functions from its headquarters situated in Kolkata city. It has founded four regional councils that operate in Delhi, Kolkata, Mumbai, and Chennai. Additionally, there are 78 chapters operating abroad and about 94 chapters operating domestically. All of the aforementioned information clearly indicates the sheer relevance of the ICWAI, which is integral in the progress and development of Accountancy in India. There are, therefore, other aspects about ICWA which need to be dealt with for better understanding of the character and functions of the same. So, here are five points about ICWAI that everyone must know about.
History behind the establishment of ICWA
In the year 1944, the ICWA was originally founded as a registered limited company. It was established vide the statutory provisions contained in the erstwhile Companies Act 1913 with the aim of ensuring promotion, regulation, and development of professional cost Accountancy in the country. Following independence, the Parliament of India gave the authority statutory recognition vide the enactment of the Cost and Works Accountancy Act 1959 for the purposes of according to the recognition and giving it a character of an autonomous institution. In the year 2011, the Cost & Works Accountancy Bill was passed by the Parliament of India, which brought relevant changes in the primary Act.
Qualification and Syllabus for ICWA
The candidates are required to successfully pass the three levels, namely: Foundation, then Intermediate, and then Final. Following successful competition of these three levels, there is a three years training to teach practical skills to the candidates in fields relating to Cost Accounting, Management Accounting, Financial Accounting, Audits, Taxation, and Corporate Laws, etc. All of these areas are essential for any Cost and Management Accountants (abbreviated as CMAs).
In the year 2012, an amended syllabus was introduced in pursuance of the International Education Guidelines (abbreviated as IEG) issued by IFAC, which aimed at securing advantages in the Mutual Recognition Agreement (abbreviated as MRA) amongst several WTO member countries.
In the syllabus, the emphasis is laid on subjects such as business valuation, financial management, strategic management, Financial accounting, corporate law, cost and management audit, etc. Also, students who have graduated successfully from any recognized institution or university are eligible to directly sit for the Intermediate examination.
Exams are organized twice a year in the months of June and December. The examinations are conducted across various test centers, which are located both in India and abroad. Results are officially announced in the month of August for the June examination and February for the December Examination.
Certification and diploma courses conducted by the ICWA
There are numerous certification and diploma courses that ICWA conducts and some of them have been mentioned below:
- Certificate in Accounting Technicians (abbreviated as CAT): The course was announced and launched in the year 2009. It is essentially a one-year long course that covers computer training, orientation training programmes, and practical training programmes. The primary aim of the course is to instill in the students requisite skills necessary in the practical world of accountancy.
- Certificate in IFRS Convergence: For the purpose of equipping members with the International Financial reporting Standards, the course has been introduced.
- Diploma in Management Accountancy (abbreviated as Dip. MA): This course is available to post membership examination. Members of ICWA, who have minimally finished one year Associateship are eligible to enroll for this course. The whole concept of the course is research based. When the student successfully completes the course, he/she is entitled to use the suffix Dip. MA after his/her name.
- Diploma in Business Valuation: Only that Cost &Works Accountant who has practiced for five years is eligible to register himself as a registered Valuer. The function of a registered valuer is to make provision of valuation in respect of stocks, property, debentures, shares, goodwill, and securities, etc. The course has been designed to improve the evaluation skills of the student through a practical teaching mechanism. It is an advanced course that mandates thorough understanding of the various concepts relating to corporate finance and management accounting. It is essential that the interested candidate for the diploma has successfully cleared the final examination of the ICWA.
Membership to ICWA
There are many categories of membership in ICWA and some of them have been discussed below:
- Associate Member (abbreviated as ACMA): It is the basic form of membership in the institute. For securing such membership, the candidate must have had at least three years experience in the area of Cost & Works Management.
- Fellow Member (abbreviated as FCMA): An Associate Member, who has practiced for at least five years in India and possesses necessary qualifications as per the council, can become a Fellow Member. On becoming a Fellow Member, the person is entitled to make use of FCMA after his/her name.
International partnerships of ICWA
ICWA is both domestically and internationally reputed and has entered into various international partnerships. It has entered into several Memorandum of Understanding (abbreviated as MoU) with pioneering accountancy bodies in the world for the purpose of Mutual Recognition and inculcating co-operative attitude among such bodies. The ICWA has entered into partnerships with the following bodies:
- Institute of Professional Accountants and Auditors of Russia (abbreviated as IPAR)
- Institute of Public Accountants (abbreviated as IPA) located in Australia
- Institute of Management Accountants (abbreviated as IMA) located in the United States of America
- Association of Chartered Certified Accountants (abbreviated as ACCA)
- Chartered Institute For Securities & Investments located in the United Kingdom
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