The Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the Mutual Recognition Agreement (MRA)between the Institute of Chartered Accounts of India (ICAI) and the CPA ("Certified Practising Accountant") Australia.

Details of Agreement;

Under the Mutual Recognition Agreement between the Institute of Chartered Accounts of India (ICAI) and the CPA ("Certified Practising Accountant") Australia will work together to establish mutual co­operation framework for the advancement of accounting knowledge, professional and intellectual development, advancement of the interests of their respective members and contribute positively to the development of accounting profession in Australia and India.

Impact:

The MRA will:

1. foster working relations between the two accounting Institutes
2. develop mutually beneficial relationship in the best interest of members, students and their organizations.
3. Increase mobility of professionals at either end and would herald a new dimension for small and medium business in both countries
4. The two accountancy institutes will have an opportunity to play the leadership role in addressing new challenges facing the profession in globalised environment.

Benefits:

The engagement between the two Institutes is expected to result in greater employment opportunities for Indian Chartered Accountants and also greater remittances back to India.

Implementation strategy and Targets:

The MRA would provide mutual recognition of qualification of members of other body who have achieved membership by completing the Examination, training and practical experience requirements of the two bodies to enable them to join the other body by receiving appropriate credit for their existing accountancy qualification. Both ICAI and CPA Australia shall work out a Mutual Recognition Agreement to recognize the qualification, training of each other and admit the members in good standing by prescribing a bridging mechanism.         

Background:

The Institute of Chartered Accountants of India (ICAI) is a statutory body established under the Chartered Accountants Act, 1949 for the regulation of the profession of Chartered accountants in India. CPA Australia is one of the world's largest accounting bodies with membership of more than 160,000 members working in 150 countries and regions around the world and offer services in education, training, technical support and advocacy.

Mutual Recognition Agreement expands cross jurisdictional recognition of accounting qualifications to enable member mobility and bridging admission. Approval establishes a Mutual Recognition Agreement between the Institute of Chartered Accountants of India and CPA Australia to recognise members' qualifications, training and practical experience and permit admission to the other body by appropriate credit and prescribed bridging mechanisms, with collaboration to define those procedures and admit members in good standing.