“If Accounting is the Language of Business, then Accounting Standards is the Grammar of Accounting”- A journey with Mr. Jomon K. George FCA to the deeper understanding of ACCOUNTING STANDARDS.
Being an expert in IPO advisory, Management Consultancy, NRI Services, FEMA and Corporate Law matters, with his eminent presence and benign words, Mr. Jomon K. George enlightened the aspiring managers of SCMS Cochin. The ācharya of more than 10,000 Chartered Accountant students, the ever-acceptable expertise in the field of Accounting, imparted his treasured knowledge on “Accounting Standards” with the vibrant young minds of SCMS.
In his maiden visit to our institute as part of empowerment program for the management students, he explained how the business world out there works, what the business world expects out of the emerging managers, and how we can grow up as full-fledged financial professionals. He gave a short introduction into financial reporting and explained elaborately on IFRS, accounting standards issued by ICAI, and Indian Accounting Standards.
The enthusiastic approach upheld by Mr. Jomon K. George towards the subject, was evident throughout the presentation. A period, beginning with the International Financial Reporting Standards of 1973, till the implementation of Indian Accounting Standards of 2016, was systematically made clear with appropriate examples. According to him, the necessity to have prescribed accounting standards is to enhance the quality and understanding of accounting, to reduce accounting alternatives, to bring out uniformity in approach and to enable meaningful comparison. From the complete set of financial statements and from years of experiences, we say, “Turnover is vanity, profit is sanity, and cash is the only reality”.
The International Financial Reporting Standards were formed in 1973 to harmonize the divergent accounting practices across the world, and in India the 29 Accounting Standards were issued by ICAI to establish uniform standards which have to be complied with to ensure that financial statements are prepared in accordance with generally accepted accounting standards. India cannot adopt IFRS as it is because the legal economic environment in India is different.
The message from the shared thoughts was clear, “Be like eagle; have an inner urge to fly above the rest, to stand out, and to be different; have a sharp vision, a vision that is seeing beyond”. India has got a lot of positives, for it is the most consuming nation, young generation with good communication skills, IT boom etc. The automated financial tools guarantee a bright future replacing human efforts and avoiding possible errors. The optimistic words flowed from his heart, “India has got provision for 100% FDI. Any foreigner can come and start business in India, with no requirement for Indian partnership in it, and not all nations give this privilege.” And with regard to the employability of the students coming out from Indian institutions, he said, India will script a sure shot success story.
Mr. Jomon K. George thus urged the youth, “DREAM BIG AND BE HUMAN, ONLY YOU CAN RESTRICT YOU”.