New Delhi, Aug 9 : The Union Cabinet chaired by Prime Minister Narendra Modi on Thursday approved the signing of a Memorandum of Understanding (MoU) between Institute of Chartered Accountants of India (ICAI) and Chartered Professional Accountants of Canada (CPAC).
The Cabinet's nod has been granted to the ex-post facto approval of the MoU signed in 2011, and approval for signing of MoU between ICAI and CPAC, Law Minister Ravi Shankar Prasad said at a press conference.
"The MoU envisages arrangements for reciprocal membership that will apply to the respective members of both the Institutes subject to specified criteria.
It also includes further collaboration on the definition, learning, and evaluation of the professional qualities and skills and competencies of entry-level chartered accountants," said the Minister.
Prasad said the aim is to work together to develop a mutually beneficial relationship in the best interest of ICAI members, students and their organizations.
"The MoU will provide an opportunity to the ICAI members to expand their professional horizon and simultaneously the institute will become an entity to aid strengthen brand building of local nations.
It will foster strong working relations between the ICAI and CPAC."
As per Cabinet statement, the MoU would help encourage more and more young Indian chartered accountants to take up the recognition of CPAC professional designation to further help them pursue opportunities in Canada.
A number of Indian chartered accountants are holding top level positions in Canadian companies and with the recognition from CPAC, the Canadian corporates would trust Indian talent and skills more and proceed to hire them, said the statement.
"The MoU will apply to members of good standing who have gained membership in the ICAI or one of the Canadian Provincial CPA bodies by meeting the education, examination and practical experience requirements of the ICAI or the Canadian Provincial CPA bodies respectively.
This agreement does not automatically apply to individuals who have gained membership of the ICAI or the Canadian Provincial CPA Bodies through another agreement with a third party," it said.
ICAI is a statutory body established by an act of Parliament of India, The Chartered Accountants Act, 1949', to regulate the profession of chartered accountancy in India.
CPAC Institute is the national organization established to support a unified Canadian accounting profession.