The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an MoU(Memorandum of Understanding) between the Institute of Cost Accountants of India (ICoAl) and the Association of Chartered Certified Accountants (ACCA), United Kingdom (UK).
It will provide mutual advanced entry to the members of both the Institutes through exemptions from appearing in the majority of papers to acquire the qualification of the other professional body and undertake a joint research by continuing professional development activities.
This Memorandum of Understanding will lead towards exchange of information, research, and publications, which will promote good governance practices in both jurisdictions. Both parties will embark on joint research related to the profession of cost accountancy, which may include collaboration in technical areas. This MoU will also facilitate the movement of professionals in both jurisdictions and will enhance the employability of cost accountants in India and abroad.
This MoU will create a pathway for members of one Institute to achieve full membership status in another Institute by passing a minimum number of professional level subjects, as well as facilitating the movement of professionals between the two jurisdictions.
Background of the Institute of Cost Accountants of India
The Institute of Cost Accountants of India was founded in 1944 and registered under the Companies Act with the mission of promoting, regulating, and expanding the profession of cost accountancy. The Institute was established in 1959, by a special act of Parliament, the Cost and Works Accountants Act, 1959, as a statutory professional body for the regulation of cost and works accountancy. In India, the Institute is the only statutory professional organisation and licensing body dedicated solely to cost and works accountancy.
About the Association of Chartered Certified Accountants
The Association of Chartered Certified Accountants (ACCA), which was founded in 1904 and was incorporated by Royal Charter in 1947 under the laws of England and Wales, is the world’s largest professional organisation for accountants, with over 2,27,000 fully certified members and 5,44,000 future members worldwide.
India-UK Bilateral Relations
The United Kingdom is one of India’s most important trading partners, ranking 15th among India’s top 25 trading partners in 2016-17. According to trade statistics from the Ministry of Commerce and Industry, India’s trade with the United Kingdom was $14.497 billion in 2017-2018.
India’s main exports
Articles of apparel & clothing accessories, power generating machinery & equipment, petroleum, petroleum products, fabrics, miscellaneous manufactured articles, textile yarn, made up articles, footwear, medicinal & pharmaceutical, metal manufactures, road vehicles and other transport equipment are India’s main exports to the United Kingdom.
India’s main imports
Power generating machinery and equipment, ferrous ores, non-ferrous metals, metal scrap, equipment & machine, general industrial machinery, beverages, transportation equipment, electrical machinery and appliances & electrical parts, scientific & controlling instruments and appliances, and chemical materials & products are the main imports from the UK to India.
One of the most popular destinations for Indian students seeking higher education is the UK. The present liberalized point-based immigration process in the United Kingdom has helped India immensely.
With the advent of robust bilateral mechanisms such as the India-UK Education Forum, UK-India Education and Research Initiative (UKIERI), Joint Working Group on Education, Newton-Bhabha Fund, and Scholarship programmes during the last ten years, the relationship has developed significantly. The UK has also lent its support to the Skills India Mission.