Sitharaman draws Attention to New Mandates, says ‘CAs need to familiarise themselves with new areas of global accounting

Bhubaneswar(India), 18/08/23: Finance Minister Nirmala Sitharaman stated on August 17 that chartered accountants must become acquainted with the new areas of accounting that are emerging globally and are becoming required for enterprises seeking funding.

She said, “There are newer areas in which chartered accountants will have to familiarise themselves with global developments. They will not just have to comply but also better advise their clients on new greenfield areas.”

She further added, “These include carbon accounting, Corporate Social Responsibility (CSR) accounting and Environmental, Social, and Governance (ESG)-related expectations. Due diligence is so required on these by your clients for negotiating on transfer of technology, negotiating with partnerships and negotiating for funds.”

Sitharaman was speaking at the National Chartered Accountants (CAs) Conference – ‘CAs Profession in Digital Era’ Inaugural Session in Bhubaneswar.

Sitharaman added, “CAs need to be familiar with these new areas of accounting. They will have to set up best practices to make it a template for everyone to follow.”

The minister stated that CAs will need to nudge their clients towards increased adoption of technology. The government is working hard to ensure that chartered accountants interact with peers in other nations in order to gain more knowledge in these areas.

The commerce ministry’s talks for a free trade agreement with the UK, as well as different Memorandums of Understanding (MoUs) in the works, she noted, should be leveraged for this by the CA community.

She elaborated on how technology helps in many fields, stating that its adoption increases productivity in manufacturing and services. Because of the digital revolution, retail investors are finding it easier to enter the stock market and people will develop trust in companies when all information is available digitally.

Sitharaman believes that having information available online might assist a country establish an image for attracting foreign investment.