The Institute of Chartered accountants of India (ICAI), through its research arm, ICAI Accounting Research Foundation (ICAI ARF) entered into an agreement with Indian Railways on February 15, 2017 for introducing the Accrual based Financial Statement as an additional set of Accounts to existing Cash based Government Accounts which will be a critical milestone in the history of Indian Railways towards embracing Accounting Standards and best practices being followed worldwide in the sphere of financial accounting and reporting. Accrual based financial statement will support Indian Railways in better utilisation of available resources, estimation of future liabilities and prioritisation of spending. It will also pave way for best financial management practices to be introduced in Indian Railways.

This agreement follows successful implementation of the pilot project for introduction of the Accrual based Financial Statement as an additional set of Accounts at North Western Railway at Jaipur and Rail Coach Factory at Kapurthala by ICAI ARF.

The agreement was signed by Shri V. Sagar, Director, ICAI ARF & Secretary, ICAI and Shri Sanjeev Sharma, Deputy Chief Project Manager (Accounting Reforms), Northern Railway in the presence of Shri Shahzad Shah, Financial Commissioner, Indian Railways and CA. Nilesh Shivji Vikamsey, Chairman, ICAI ARF & President, ICAI and other dignitaries.