NEW DELHI, Nov 23: Institute of Chartered Accountants of India (ICAI) will set-up an institute to do research work in areas of accounting, auditing, taxation and other related matters.

"The various research activities would be carried out by the institute either on its own or in collaboration with other research and academic bodies" president of ICAI MM Chitale said. He said research activities undertaken by the new company "accounting research foundation" would be oriented towards macro-level subjects which are of paramount interest to the accounting profession and nation.

The research institute would be the first of its kind in the country and has been set-up as a non-profitable institute, under section 25 of the Companies Act, 1956.

He also said two acres of land has already been acquired by the institute in Noida and is likely to be operational in the next 12 months.

Chitale said the institute would lay emphasis on fundamental and empirical research which is essential for the growth of economy, society, political and global business environment.

Chitale said the research institute would also look into matters relating to framework of national accounts on accrual basis, changing perceptions of auditors in society, lowering of direct tax rates and its impact on capital formation and other matters relating to various accounting bodies of the world.

He said research activities carried out by the foundation institute would also help ICAI in formulation and revision of accounting standards, statements on standard auditing and other authoritative pronouncements.

"The increased research base of such pronouncements would greatly enhance their usefulness to professional accountants, government departments, financial institutions, industry and other interested groups" Chitale said.

He said another area where the institute would lay emphasis is on creation and maintenance on continuous basis, database, both at national and international level.

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