The 8th CYP meeting started at 7:15 am in the presence of our veteran mentor CA Vikash Baid. The Master of Ceremony (MOC) for the week, YP Ashok Mahawar took over the Dias to invite Vikash Sir to initiate a group discussion.
The topic for the group discussion this week was Satyam's Scandal which had taken not only India but the whole world by storm. Vikash Sir gave us valuable insight into the stock market fluctuations as a result of the scam. From there on we moved ahead with a group discussion which was segregated in a chronological manner as the situation arose:
· Facts and Events which lead to this saga.
· Steps taken by various regulatory authorities like Ministry of Corporate Affairs, SEBI, ICAI, etc.
· Impact of the action taken by the regulatory authority.
· Responsibility of the Internal Auditor, Audit Committee and Independent Directors in this case.
· Responsibility of Statutory Auditors
· Lessons learnt from this and the road ahead.
After the end of the Group Discussion all of us came to the conclusion that there are laws to prevent such debacles but there is a lack of transparency and implementation gap in such laws. The way the former chairman of Satyam Computer Services pledged his holdings to the FIs for funds without proper disclosure of the same in the Financial Statements implies such non compliance.
After this session YP Rohit Biyani, YP Mudit Saha & YP Rahul Goyal presented informative papers on IAS 16 - Property Plant and Equipment, IAS 36 – Impairment & IAS 38 -Intangibles respectively. The session was a knowledgeable one as the difference between Indian Accounting Standards and International Accounting Standards was discussed well at large. It was informed that IAS-16 is same as AS -10, IAS 36 is equivalent to AS-28 and IAS-38 is equivalent to AS-26. The discussion was on the additional requirements in IAS as compared to the Indian Standards.
In between each session of IAS there was an “Extempore” session in which a random topic was given to the YPs to speak on for which they were given 2 mins to think over the topic and 3 minutes to express their views.
The Details of the expempore are:
The topic for the group discussion this week was Satyam's Scandal which had taken not only India but the whole world by storm. Vikash Sir gave us valuable insight into the stock market fluctuations as a result of the scam. From there on we moved ahead with a group discussion which was segregated in a chronological manner as the situation arose:
· Facts and Events which lead to this saga.
· Steps taken by various regulatory authorities like Ministry of Corporate Affairs, SEBI, ICAI, etc.
· Impact of the action taken by the regulatory authority.
· Responsibility of the Internal Auditor, Audit Committee and Independent Directors in this case.
· Responsibility of Statutory Auditors
· Lessons learnt from this and the road ahead.
After the end of the Group Discussion all of us came to the conclusion that there are laws to prevent such debacles but there is a lack of transparency and implementation gap in such laws. The way the former chairman of Satyam Computer Services pledged his holdings to the FIs for funds without proper disclosure of the same in the Financial Statements implies such non compliance.
After this session YP Rohit Biyani, YP Mudit Saha & YP Rahul Goyal presented informative papers on IAS 16 - Property Plant and Equipment, IAS 36 – Impairment & IAS 38 -Intangibles respectively. The session was a knowledgeable one as the difference between Indian Accounting Standards and International Accounting Standards was discussed well at large. It was informed that IAS-16 is same as AS -10, IAS 36 is equivalent to AS-28 and IAS-38 is equivalent to AS-26. The discussion was on the additional requirements in IAS as compared to the Indian Standards.
In between each session of IAS there was an “Extempore” session in which a random topic was given to the YPs to speak on for which they were given 2 mins to think over the topic and 3 minutes to express their views.
The Details of the expempore are:
