7-07 Why do we need ICGI - for non-transactional

7-07 Why do we need ICGI - non-transactional

Here are 5 key points summarized from the transcript:
1. I suggest there's a need for ICGI (Institute of Certified Global Accountants) due to challenges in handling non-transactional items in accounting.
2. While many sectors (manufacturing, agriculture, services, etc.) have seen improvements, management has resisted controls and regulations in accounting.
3. The development in the accounting area has been stagnant or declining since 1985, with issues like IAS 38 (intangible assets) causing problems.
4. Modern CFOs are limited to analyzing financial ratios without much improvement in their methods.
5. I argue that ICGI (The Institute of Corporate Governance of India) needs to be established to address these issues in accounting and financial management.

With this 7-07 let me conclude Accounting aspects of our journey toward Accountability. I elaborated how accounting has not kept pace with advancements in other industries, particularly in handling non-transactional items. IAS 38 Intangible Assets no doubt is the most damning non-transactional item, a non-monetary asset without a physical substance but there are others too, such as insider trading. More than 296 such qualitative items exist in an organization that are non-transactional. By removing ICAI’s version of Intangible Assets, Accounting shall deal with mainly on transactions . It shall fortify Accounting body without showing concession to any other body. Intangible Assets Standard be replaced with the earlier version of Capitalization of Research & Development costs. Accounting profession will be secured.

Non-transactional items are very many such as Code of Conduct, whistle blower policy, Women Empowerment etc. nearly 296 of them and we would keep counting more and more. Accounting Standards will not be able to handle them and hence an independent ICGI - The Institute of Corporate Governance of India by an Act of Parliament is very much warranted.

I shall continue giving you in a few YouTube shorts way, explaining the science based approach toward ICGI.