On October 21, 2020, the Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has approved the Mutual Recognition Agreement between the Institute of Chartered Accounts of India (ICAI) and the Malaysian Institute of Certified Public Accountants (MICPA) to enable appropriately qualified CA (Chartered Accountant) members of either Institute to join the other Institute by receiving appropriate credit for their existing accountancy qualification.
The Institute of Chartered Accounts of India (ICAI) is a statutory body established under “The Chartered Accountants Act, 1949” to regulate the profession of Chartered Accountants in India. The Malaysian Institute of Certified Public Accountants a company incorporated in Malaysia under the Companies Act, 1965.
Implementation strategy and Targets
For the recognition of both ICAI and MICPA’s qualification, they would enter into an arrangement through a specific module of papers and determining the basis upon which admission to membership of appropriately qualified members of the other body may occur. The proposed MoU will cover Chartered Accountant members of either professional body, who have-achieved membership by completing the education, ethics, examination and practical experience and membership requirements of the two parties, both ICAI and MICPA would agree to provide each other with information on material changes to their qualifying/admission requirements, Continuing Professional Development (CPD) policy, exemptions, and any other relevant matter.
Major Impact
ICAI is intending to establish bilateral cooperation with the Institutes in the Asia Pacific Region and therefore intends to sign the MoU with the MICPA. The two accountancy institutes will have an opportunity to play a leadership role in addressing new challenges facing the profession in a globalized environment. A formal arrangement between two regulatory institutions at both ends brings in an element of enhanced visibility and wider acceptance amongst stakeholder community thus, paving ways for the augmentation of increased professional opportunities.
With Warm Regards,
CL Bureau.
