One of the top executives from The Institute of Chartered Accountants of India (ICAI) has said that the organization is probably going to submit its report on the double entry accounting system for Jaipur division of Railways by this August. Main areas of the topic include traffic revenue, balance-sheet accrual system, and fixed assets.
By making a move to the institute, the chief purpose of the Indian Railways was to the convince the same for undertaking the tentative project on the study of current budgeting and the costing system. They wanted the institute to come up with a proposed plan for the outcome budgeting and the integrated cost accounting framework in agreement with the 2016 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,” told by ICAI President M Devaraja Reddy to PTI.
From April 8 onwards, an identical approach will be started for the Kapurthala-based rail coach as well. “We may submit the report on the double entry accounting system for Jaipur division of Railways by August. 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.
Further, he added that a project on ‘migration strategy for implementation of accrual accounting system in EPFO’ has also been considered by ICAI and it has submitted the draft reports already.
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