A professional institute with cutting edge
May 08 - May 14, 2006
There are only two professional Institutes enjoying legal status approved under legislature. One of these is the Institute of Cost and Management Accountants of Pakistan. This Institute has been serving the business community for the last 54 years. Set up in 1951 as the Institute of Industrial Accountants, it was given legal charter in 1966 by the Parliament and was born with a new name i.e. The Institute of Cost and Management Accountants of Pakistan under the Cost and Management Act 1966. It has so far produced 3100 qualified Cost and Management Accountants and today has 23,000 students on its rolls. It has been offering education through formal education by serving student community throughout Pakistan in various important cities of Pakistan and has also been offering distance-learning education through its Correspondence Course. In fact, it has served as the first Open University of Pakistan. Currently bold and innovative initiatives are being taken to provide professional education through digital devices.
Cost Accounting before 1946 had a dominant emphasis on cost elements, their analysis and rationalization. Need was felt to inject the idea of using costing information for managerial purposes. In the 1940s, Mr. Muhammad Shoaib, who later became the Finance Minister of Pakistan, visualized the need for an organized cost and management accounting profession in the then British India and was the founder of the Institute of Cost and Works Accountants of India, Calcutta. This was a Muslim gift to the Indians.
Later, in 1951, he founded Pakistan Institute of Industrial Accountants, which later was converted into the Institute of Cost and Management Accountants of Pakistan and was established by an Act of Parliament passed in 1966. The object of the legislation was to regulate the profession on sound lines, produce suitably qualified Cost and Management Accountants to serve the economy of Pakistan and lay sound and solid foundation of a competitive and prosperous Pakistan.
Cost and Management Accountants play a unique role. They help to increase productivity, avoid wastages, rationalize cost structures, help in adding or dropping products or market outlets, machines and money. These roles are culture and are only performed by those who qualify as Cost and Management Accountants. They represent "products differentiated" because they have shortest followed excellent syllabus and have field exposure of real life to their credit.
The crying need of today's Pakistan is to increase efficiency and productivity in agriculture, industry and the services sectors, achieve optimization the use of manpower, synergism of the efforts for obtaining 2+2=5 effect and generation of data to serve as decision support system.
The course package develops various skills of the persons pursuing the career of a Cost and Management Accountant. They introduce productivity measurement and gain sharing schemes. They help in promoting the use of productivity sharing agreements (PSA). Their implementation enables a company to become self-financing and anti-inflationary.
Entry into the Cost and Management Accounting profession requires passing entry test, which has been outsourced and is held throughout Pakistan on competitive basis. Exemption to entry test is for first class graduates to encourage them to commence their studies. Foundation stage consists of two parts. Professional Examinations are spread over four stages. Foundation stage includes courses such as Principles of Accounting, Computer Systems and Applications, Business English, Economics and Business Environment, Financial Accounting, Management Information System and Industrial & Commercial Laws. Professional Examination is spread over four stages and includes 16 courses i.e. Management Science Applications, Cost Accounting, Business Communication and Report Writing, Quantitative Methods, Advanced Financial Accounting, Operational Cost Accounting, Business Taxation, Corporate Laws and Secretarial Practices, Financial Reporting, Strategic Management Accounting, Organizational Behavior and Strategic Management, Auditing, Strategic Financial Management, Corporate Performance Audit and Evaluation, Marketing Management, Information Management and Auditing.
Special efforts are made to develop students into accomplished professionals. The first step is the screening process at entry point. The second one is the processing through quality teaching, extensive presentations by students throughout their learning period, attending seminars on subjects of contemporary interest, holding of students Conferences and quality oriented external examination system. Improvements continue to achieve higher quality standards to serve the ever-growing needs of the society at home and abroad.
ICMAP is a founder member of International Federation of Accountants (IFAC), U.S.A., International Accounting Standards Board, (IASB) U. K., Confederation of Asian and Pacific Accountants (CAPA), Malaysia and South Asian Federation of Accountants (SAFA), India. It enjoys unique position of international linkages. In almost all continents of the World, its members are serving in a dedicated and meritorious manner.
The Cost and Management Accountants have varied and versatile scope to serve in Pakistan. They can play a productive role in the agricultural field. However, they can most effectively contribute to industrial and mining sectors in producing goods at economic cost levels. They compute cost, analyze the same and help in developing cost centers and profit centers.
They also serve in services sector by richly contributing to the noble cause of three Es, namely Efficiency, Effectiveness and Economy. Some Cost and Management Accountants are in teaching field. They are serving through teaching in Universities and academic Institutions. They are practicing as cost consultants and/or cost auditors.
Till the enactment of the Companies Ordinance 1984, it was not legally obligatory for process-oriented companies to maintain cost accounting records. The Institute of Cost and Management Accountants of Pakistan launched a movement to get the above enactment passed. Our Institute is extending full assistance in framing Cost Accounting Records Rules and the Federal Government has notified these rules for application to vegetable ghee, sugar and cement industry. The process in Government machinery is very slow. We are persuading the Government, Business and Industry to respond positively in this direction. Section 258 of the Companies Ordinance 1984 requires Cost Audit to be conducted by a Chartered Accountant or a Cost and Management Accountant. This has legally established the position of Cost and Management Accountants to undertake Cost Audit. This will serve as a forerunner of audit of limited companies in future.
Pakistan needs specialists in various fields. Cross border transactions are going to push several inefficient industries out of the scene. Survival of business will not be on cost plus concept but on target costing concept.
For meeting the competitive wave which WTO is going to unleash, Cost and Management Accountant is the specialist in his area who can help businesses reduce costs, optimise the use of inputs, synergise the same and enable business to produce goods and services at affordable prices with quality orientation for the benefit of the consumers.
In this background, ICMAP is positively responding to situation in changing its syllabus, introducing field experience orientation, updating its members, producing high quality products and is productively engaged in a positive response to the emerging challenges of the 21st century and the new millennium.