Future of cryptocurrency: ICAI working on paper on tax treatment of crypto assets

ICAI also plans to develop and issue a single comprehensive framework for social audit standards for audit of impact reporting of social enterprises listed on SSE and area specific social audit standards with respect to sub – themes of social impact, for example, poverty, nutrition etc. The standards would cover all aspects of assurance of impact reporting like, scope, engagement acceptance, basic principles, audit procedures, assurance report, documentation, etc.

The ICAI had launched nationwide 'ICAI sustainability literacy drive' with an objective to make the process of sustainable development more feasible and operational by establishing a common focus of various distinct stakeholders. Continuing the endeavour, ICAI is partnering with Sebi in its initiative namely 'social stock exchange' and is in the process of finalising the code of conduct for social auditors who would function under the regulatory framework of Social Stock Exchange (SSE) and conduct social audits

Mumbai: The Institute of Chartered Accountants of India (ICAI) is currently working on a paper on cryptocurrency. The research paper will be prepared and the same will be submitted to the government as a part of the consultative process. The paper will include audit and taxation aspects involved in cryptocurrencies.

Talking to Bizz Buzz, CA Debashis Mitra, president, ICAI, said: "Given the complexity and technicality involved in cryptocurrencies, we have set up a research group to study and understand the subject."

A research paper will be prepared and the same will be submitted to the government as a part of the consultative process. The paper will include audit and taxation aspects involved in cryptocurrencies, he said.

In the wake of popularity of virtual currencies or cryptocurrency, ICAI would be undertaking a detailed study about virtual currencies, a new phenomenon but the importance of which is catching up globally. A research group is being constituted by ICAI and shall be soon undertaking the task, he added.

The activities of the Institute will continue to grow in significance especially, in the light of the rise of the digital economy. Blockchain is believed to have the similar potential that the internet had in the 1990s. Just like the internet revolutionized the exchange of information, blockchain is being said to revolutionize the exchange of value.

The ICAI had launched nationwide 'ICAI sustainability literacy drive' with an objective to make the process of sustainable development more feasible and operational by establishing a common focus of various distinct stakeholders. Continuing the endeavour, ICAI is partnering with Sebi in its initiative namely 'social stock exchange' and is in the process of finalising the code of conduct for social auditors who would function under the regulatory framework of Social Stock Exchange (SSE) and conduct social audits.

ICAI also plans to develop and issue a single comprehensive framework for social audit standards for audit of impact reporting of social enterprises listed on SSE and area specific social audit standards with respect to sub – themes of social impact, for example, poverty, nutrition etc. The standards would cover all aspects of assurance of impact reporting like, scope, engagement acceptance, basic principles, audit procedures, assurance report, documentation, etc.

ICAI continuously work towards improving the quality of assurance services rendered by its members. Peer review is one such initiative, through which the ICAI has been working diligently to improve the quality of assurance perception services provided by its members.

Recently, the council of ICAI has mandated peer review mechanism for certain categories of firms rendering assurance services to specific class of entities, which will go a long way in enhancing the audit quality.

A detailed roadmap has been laid down which classifies practice units into four categories and prescribes the implementation of peer review process. The implementation will begin, in a phased manner, from April 1, 2022 and will first apply to practice units (firms) that have undertaken statutory audit of enterprises whose equity or debt securities are listed in India or abroad.

Over the next three years, the roll out would steadily cover firms providing assurance services to companies other than those listed on stock exchanges also including the ones conducting audits of branches of PSBs.

With an increasing number of accounting, financial and loan irregularities, there is a pressing need of forensic accounting and investigation professionals in India to conduct their professional assignments in a manner which is based on the comprehensive, qualitative and prudent set of standards, and also to collect evidences which may be subject to high level of scrutiny in a court of law.

ICAI is the first accounting body in the world to release the detailed forensic accounting and investigation standards (FAIS) for its members and other stakeholders. The FAIS is principle based and will stipulate certain basic (but mandatory) requirements to be fulfilled by members who undertake forensic assignments. FAIS will also provide recommendatory guidance on the procedures which may be followed in completing such assignments. Till date, 23 FAIS have been issued by ICAI.

For the first time in India, ICAI would be hosting World Congress of Accountants (WCOA), November 18-21, 2022 in Mumbai. WCOA 2022 is being held in hybrid mode for the first time ever in the Congress's history. Celebrating ideas for future - the World Congress, this time, would dwell upon the theme "building trust enabling sustainability" keeping in mind the important role accountancy profession is playing as protector of public interest and how the profession can play an instrumental role to enable sustainable economies for the future. A conglomeration of 6,000 delegates from over 135 countries will exchange views on accounting and allied areas.

The mission of ICAI is to provide a strong foundation of knowledge, skill and professional value that enables students to grow as wholesome professionals and adapt to change throughout their professional career. ICAI's constant endeavour is to impart world class education, training and professional development opportunities to create global professionals.

ICAI will soon introduce a 'new scheme for education and training,' wherein emphasis would be more on development of higher order skills of application, analysis and interpretation. A special feature of the new scheme would be the mandatory multi-disciplinary case study at the final level, which would help students integrate professional knowledge in different subject areas, analyse and apply such knowledge in problem solving. The scheme also intends to focus more on practical training and will also offer self-paced online modules, where in working students can learn and qualify at their own pace.

CA Aniket Sunil Talati, vice-president, ICAI added: "This is for the first time the CA course is being revised in 5 years instead of 10 years, as per past practice. The role of a chartered accountant is undergoing a significant change to assume newer responsibilities in a dynamic environment. There has been a marked shift towards strategic decision making and entrepreneurial roles that add value beyond financial recording and reporting. The competence level of chartered accountants - accordingly need to be bolstered significantly to enable them to perform these roles effectively. "

To widen its reach and encourage young aspirants from across the country, ICAI has decided to extend a 75 per cent concession in registration course fee for all levels of Chartered Accountant courses to the students registering from Union Territories of Jammu and Kashmir, Ladakh and eight North-East States, namely, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Andaman & Nicobar Islands till March 31, 2025.