The entire economy of the world is based on faith, and whenever there is a deficit of faith, there is bad economy.
This was said by former Chief Justice of India Dipak Misra during the special session during inauguration of two-day conference of CIRC (Central India Regional Council) of ICAI (Institute of Chartered Accountants of India) at ICAI auditorium on Saturday.
“During my college days, our economics professor became vice chancellor (VC), who asked us what we understand by economics or economy,” Misra said. As explained by the VC, he quoted that entire economy of the world is based on faith.
“Faith here means, you are aware about the culture of the man, i.e. cultivation of the man; the industry; benefits and assets; and further, you have faith in the person,” Misra said. He added that whenever there is a deficit of faith, there is a bad economy.
“And faith is not structured in psychology, but by economics of psychology,” Misra said. He urged CAs to develop psychology of economics, and cited that psychologists writing books on the subject are winning Nobel Prize.
“Tax planning must be genuine putting both income and expenses in perspective, for which, every chartered accountant (CA) must legally and ethically understand the law and be able to explain tax evasion,” Misra said.
“CA plays a significant role in the economy and in explaining the point where tax saving becomes tax evasion,” Misra said. He asked all the CAs to understand and learn the law.
“CA needs to question themselves whether they will be accurate and beautiful or inaccurate and ugly,” Misra said. He explained that being accurate means ensuring that the point where tax saving does not become evasion.
“When we talk about CA, it immediately strikes us that what is the purpose of building economic ethos of a nation like ours, we are between developed and developing economy. We cannot claim to be developed and cannot keep saying developing, so we are somewhere in between,” Misra said.
He noted that accountant system has always existed in India, in ancient days it was different and known as Arthashastra. “Presently, a state has come when there is multiplicity of business as one entity is entering series of transaction with other entities, so there is a sense of reciprocity,” Misra said.
He added that in such a situation when there is multiple, reciprocal and innumerable transactions, the scientific manner of book keeping becomes paramount.
“The respect, devotion and dedication that CA have for formality of book keeping matters, because you must remember that formality is hallmark of authenticity,” Misra said.
With an example of Warren Buffet and citations from his biography, Misra explained that accounting brings self-discipline and quality in business.
“CA are in place to bring such quality in business and holding on as the moral spine of Indian economy, and if they break morality then Indian economy will go haywire,” Misra said.
Further, he urged CAs to understand RBI (reserve bank of India)’s circulars in proper perspective.
“Sometimes you are guided by clientele psychology and demands, please understand the language and learn fundamentals of statuary,” Misra said. He asked CAs to advise their clientele accordingly.
He quoted CA’s role of a protector for their clientele.
“You are sitting in a very good infrastructure, but this is not the right definition. Quality infrastructure has to be improved, and until you do that your lateral thinking and horizontal structure will not improve,” Misra said. He reminded CAs of their duty to protect the interest of entrepreneurs.
Further, he asked them to be acquainted with international accounting standards and improve their knowledge. “Nano economics is throwing challenge at you, you have to equip yourself,” Misra said.
Full Time Member in the Insolvency and Bankruptcy Board of India Dr Mukulita Vijayawargiya addressed the gathering talking about specialist fields for CAs.
CA Ashish Garg, president of all India ICAI, talked about uniqueness of every CA despite studying the same syllabus.
This was said by former Chief Justice of India Dipak Misra during the special session during inauguration of two-day conference of CIRC (Central India Regional Council) of ICAI (Institute of Chartered Accountants of India) at ICAI auditorium on Saturday.
“During my college days, our economics professor became vice chancellor (VC), who asked us what we understand by economics or economy,” Misra said. As explained by the VC, he quoted that entire economy of the world is based on faith.
“Faith here means, you are aware about the culture of the man, i.e. cultivation of the man; the industry; benefits and assets; and further, you have faith in the person,” Misra said. He added that whenever there is a deficit of faith, there is a bad economy.
“And faith is not structured in psychology, but by economics of psychology,” Misra said. He urged CAs to develop psychology of economics, and cited that psychologists writing books on the subject are winning Nobel Prize.
“Tax planning must be genuine putting both income and expenses in perspective, for which, every chartered accountant (CA) must legally and ethically understand the law and be able to explain tax evasion,” Misra said.
“CA plays a significant role in the economy and in explaining the point where tax saving becomes tax evasion,” Misra said. He asked all the CAs to understand and learn the law.
“CA needs to question themselves whether they will be accurate and beautiful or inaccurate and ugly,” Misra said. He explained that being accurate means ensuring that the point where tax saving does not become evasion.
“When we talk about CA, it immediately strikes us that what is the purpose of building economic ethos of a nation like ours, we are between developed and developing economy. We cannot claim to be developed and cannot keep saying developing, so we are somewhere in between,” Misra said.
He noted that accountant system has always existed in India, in ancient days it was different and known as Arthashastra. “Presently, a state has come when there is multiplicity of business as one entity is entering series of transaction with other entities, so there is a sense of reciprocity,” Misra said.
He added that in such a situation when there is multiple, reciprocal and innumerable transactions, the scientific manner of book keeping becomes paramount.
“The respect, devotion and dedication that CA have for formality of book keeping matters, because you must remember that formality is hallmark of authenticity,” Misra said.
With an example of Warren Buffet and citations from his biography, Misra explained that accounting brings self-discipline and quality in business.
“CA are in place to bring such quality in business and holding on as the moral spine of Indian economy, and if they break morality then Indian economy will go haywire,” Misra said.
Further, he urged CAs to understand RBI (reserve bank of India)’s circulars in proper perspective.
“Sometimes you are guided by clientele psychology and demands, please understand the language and learn fundamentals of statuary,” Misra said. He asked CAs to advise their clientele accordingly.
He quoted CA’s role of a protector for their clientele.
“You are sitting in a very good infrastructure, but this is not the right definition. Quality infrastructure has to be improved, and until you do that your lateral thinking and horizontal structure will not improve,” Misra said. He reminded CAs of their duty to protect the interest of entrepreneurs.
Further, he asked them to be acquainted with international accounting standards and improve their knowledge. “Nano economics is throwing challenge at you, you have to equip yourself,” Misra said.
Full Time Member in the Insolvency and Bankruptcy Board of India Dr Mukulita Vijayawargiya addressed the gathering talking about specialist fields for CAs.
CA Ashish Garg, president of all India ICAI, talked about uniqueness of every CA despite studying the same syllabus.