China, India to set up accounting desks

The two fastest growing economies in the world have decided to exchange notes on accounting practices.

China will set up an accounting desk at the Institute of Chartered Accountants of India (ICAI) for educating the Indian companies and accounting professionals on their accounting practices. India will reciprocate the move by setting up an Indian desk with the Chinese accounting body.

The agreement was reached last week when Ashok Haldia, secretary, ICAI ,was in China to study the country's accounting framework.

The desk would act as a nodal point for exchanging information concerning accounting profession, investment opportunities and economic scenario in both the countries, Haldia told Business Standard.

A team from the Chinese Institute of Certified Public Accountants would visit India in the next six months.

With a host of Indian MNCs setting shop in China, there is a growing need to develop closer interaction in the accounting field, Haldia said. Modalities on how the best of the accounting profession of the two countries can work together would be worked out in the next few months.

"China has shown interest in our post-qualification courses," Haldia said. Elaborating on the Chinese accounting profession he said, as of now China did not have post qualifications courses for its accountants.

China is also keen on ICAI's Continuing Professional Education programme and expressed interest in ICAI's expertise in the peer review system for its members.

"The first task is to translate our accounting-related material into Chinese so that the communication can be effective," Haldia said.