ICAI to submit report on accounting system to Railways by August

The Institute of Chartered Accountants of India (ICAI) is likely to submit its report on the double entry accounting system for Jaipur division of Railways by August, a top executive has said.

The study will cover areas like traffic revenue, fixed assets, and balance-sheet accrual system. The Indian Railways had approached the institute to undertake pilot project on study of existing budgeting and costing system and proposal for outcome budgeting and integrated cost accounting architecture in line with Union Budget .

"Railways has got vast assets across the country and huge manpower. Hence, the double accounting system will help them to know how to manage those assets and manpower in a cost-effective manner," ICAI President M Devaraja Reddy told PTI.

ICAI will start working on a similar study for Kapurthala-based rail coach factory from April 8. "We may submit the report on the double entry accounting system for Jaipur division of Railways by August," he said.

The institute has recently undertaken a pilot study project of review of the capital expenditure procurement process and policy compliances framework on pro-bono basis of another state-owned PSU, Coal India, he said.

ICAI has also taken up a project on 'migration strategy for implementation of accrual accounting system in EPFO' and the draft report has already been submitted, he said.