| Institute
of Cost and Works Accountants of India
is the only professional body specialized in the field of Cost and
Management Accountancy in India. The Institute was first formed as
a limited company in 1944 under the provisions of the then Companies
Act 1913.
Our
Ideals are -
- Developing
Cost and Management Accountancy profession
- Developing
the body of members and properly equip them for functions
- To ensure
sound professional ethics
- To keep abreast
of new developments
It
was during the early years of World War II, that the concept of
cost as an independent entity made its beginning in the industrial
circles of the World. Due to prohibitive cost of defence operations,
the then governments at war found it difficult to ascertain the
price of defence purchases and thus evolved the concept of cost
plus contracts. This necessitated the contractors to submit the
estimates of cost for the works being undertaken by them, for the
award of the contracts.
With the end of the War in the year 1945, the nations ravaged by
the effects of war, began large scale reconstruction of their economies,
by according priority to industrialization. This process was further
hastened by the end of colonialism resulting in many nations across
the world gaining Independence. The decade of the late forties and
fifties can be really called as the golden era of industrialization.
With this, the importance of cost accounting in fixation of prices,
formulation of government policies gave the necessary impetus for
the growth of the profession.
What
began as the mere exercise in estimating the cost, later developed
as a movement for efficiency, optimum utilization of scarce resources.
The central Government accorded statutory recognition to the Institute
with the Parliament passing the cost and works Accountants at 1959
(23 of 1959).
In
an unprecedented action anywhere in the world, the central government
in the year 1964, amended the companies Act 1956 by introducing
statuary maintenance of cost accounting record in select core industries
and audit of the same by qualified cost and management accountants.
In the year 1982, by realizing the importance of the profession
in the economic development, the central government created an all-India
cadre known as Indian cost Accounts Service, at par with class I
services of the central government to advise the government on various
fiscal matters. During the year 1994, the Institute celebrated the
Golden Jubilee year of the formation.
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