Financial Daily from THE HINDU group of publications
Friday, Jun 14, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Corporate - Accounting Standards
Industry & Economy - Leather


Costing standards for footwear sector

Our Bureau

NEW DELHI, June 13

THE Institute of Cost and Works Accountants of India (ICWAI) has come out with Cost Accounting Standard on Classification of Cost, guidelines on Transfer Pricing and Cost Accounting Rules relating to footwear industry here today.

"The relevancy of costing system has increasing enormously with the Indian industries having to compete with the multinationals who started their operations with the latest technology and professional expertise. The globalisation has changed the perception of the management that costing system need be adopted in wider scale so that they are equipped with necessary tools and techniques to face the challenges of the competition,'' the President of ICWAI, Mr V V Deodhar, said.

ICWAI has undertaken the work of standardising cost accounting practices in India so that the cost of product manufactured in India could be compared with product manufactured in other countries. This will go a long way to help the Indian industry to contest the cases relating anti-dumping under WTO, he said.

The Cost Accounting Standard on Classification of Cost is the first in the series. The objective of this standard is to prescribe the classification of costs for ascertainment of cost of a product or service and preparation of cost statements on a consistent and uniform basis with a view to effect the comparability of the same of an enterprise with that of previous periods and of other enterprises.

Two other Cost Accounting Standards that are in the offing pertain to `Allocation of Overheads' and `Cost of Production for Captive Consumption'. These two standards are expected to be finalised in three months.

Further, the institute has also came out with guidelines on Transfer pricing. The book deals with different methodologies used for fixation of transfer price in a great detail. "This will facilitate the professional members of the Institute and the captains of the industries to accurately determine the basis of transfer pricing,'' Mr Deodhar said.

Besides, to assist the industry and professional members to implement the cost accounting record rules, ICWAI brought out booklet on cost audit in footwear industry so that proper compliance is ensured in the form of maintenance of cost accounting records rules and cost audit resulting into cost control, cost reduction and better capacity utilisation.

The Minister for Law, Justice and Company Affairs, Mr Arun Jaitley, released the booklets here today.

The Cost Accounting Standard Board under the chairmanship of Mr Chandra Wadhwa, Central Council Member of ICWAI, has compiled these books in the form of guidelines.

Send this article to Friends by E-Mail

Stories in this Section
GMR to invest Rs 80 cr in ING Vysya Insurance


Foreign parent not to hike Thomas Cook stake for now
Upgraded Honda City to be launched soon
Apollo Tyres board meet on June 26
Digital rules out near-term buyback
Costing standards for footwear sector
MTNL seeks time to sort out BSNL dues
CESC falters on FRN interest
HT power installations -- Spinners' body gets stay on inspection fee hike
TN has acted in public interest in buying land for industrial park: HC
No move to issue licences to foreign accountants: ICAI
Norms for appointment of co secretaries eased
TVS Motor Co expects rich SAP dividends
Fund to revive sick cos -- India Inc against imposition of cess
Kerala Govt to sign MoU for Trayons revival soon


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line