Daily Current Affairs 2021 1 July: National Chartered Accountants Day | Daily Current Affairs 2021

1 July: National Chartered Accountants Day

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National Chartered Accountants Day

Institute of Chartered Accountants of India (ICAI) celebrates its Foundation Day each year on July 1 as ‘Chartered Accountants’ Day’ or ‘CA Day’.

Highlights:

This year, 2021 is the 73rd celebration of the day.

It is observed to celebrate and acknowledge the contribution of India’s most professional and old finance and accounting body ICAI.

ICAI is a statutory body established by an Act of Parliament, viz. The CA Act, 1949 for regulating the profession of Chartered Accountancy in India.  

History:

  • Before ICAI came into existence, the British Government in India used to maintain accounts using the Companies Act. The British Government then launched an accountancy diploma course for auditors.
  • The people who completed this course became eligible to work as auditors all across India.
  • However, the accountancy profession remained unregulated in India until an expert committee, in 1948, suggested the formation of an autonomous body to regulate the same.
  • It was followed by the passing of the Chartered Accountant Act in 1949.
  • The ICAI was established on 1 July 1949.

Significance:

Chartered Accountants (CA) play a very important role in development of our country.

Moreover, the ICAI is the most professional institute which regulates the accounting standard in India.

The organization has over 2.5 lakh members.

The official motto of ICAI is taken from the Upanishad which reads, “Ya esha supteshu jagriti”. It means ‘the one who is awake in those that sleep’.         

ICAI:

  • It refers to the Institute of Chartered Accountants of India.
  • ICAI functions under the administrative control of the Ministry of Corporate Affairs (MCA), Government of India (GOI).
  • It was established on 1st July in the year 1949 under an Act passed in Parliament.
  • It is the national professional accounting body of India and also the second biggest accounting organization in the world.
  • It is the sole licensing and regulatory body for the financial audit and accounting profession in India. 
  • Its recommendations are followed by everyone – from the National Financial Reporting Authority (NFRA) to companies and accounting organizations.
  • Its affairs are managed by a Council as per the provisions of the Chartered Accountants Act, 1949 and the Chartered Accountants Regulations, 1988.
  • It is headquartered in New Delhi.
  • The current President of ICAI Nihar Jambusaria.

NFRA:

  • It refers to the National Financial Reporting Authority.
  • NFRA was constituted on 1 October 2018 by the Government of India under Sub Section (1) of section 132 of the Companies Act, 2013.
  • The current Chairman of NFRA is R.Sridharan.

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