It was during the early years of World War II, that the concept of cost as an independent entity made its beginning in the industrial circles of the world. Due to the prohibitive cost of defence operations, the then governments at war found it difficult to ascertain the price of defence purchases and thus evolved the concept of cost + contracts. This forced the contractors to submit the cost of the work to be undertaken by them, in order to be awarded the contract.
1945 brought the end of the war, and the nations ravaged by the effects of war began large-scale reconstruction of their economies through industrialisation. The end of colonialism meant that many nations gained their independence, and this process increased rapidly. The late forties and fifties can really be termed the golden era of industrialisation. The importance of cost accounting as being central to the formation of government policies provided the foundation of the rapid growth of the profession. What began as a mere exercise in estimating the cost later developed into a movement for efficiency and optimum utilisation of scarce resources.
The Institute of Cost Accountants of India (erstwhile The Institute of Cost and Works Accountants of India) was first established in 1944 at the then Calcutta as a registered company under the Companies Act with the objects of promoting, regulating and developing the profession of Cost Accountancy.
On 28th May, 1959, the Institute was established by a special act of Parliament, namely, the Cost and Works Accountants Act, 1959 as a statutory professional body for the regulation of the profession of cost and management accountancy.
The Institute pursues the vision of cost competitiveness, cost management, efficient use of resources and structured approach to cost accounting as the key drivers of the profession. In today's world, the profession of conventional accounting and auditing has taken a back seat and cost and management accountants are increasingly contributing toward the management of scarce resources and apply strategic decisions. This has opened up further scope and tremendous opportunities for cost accountants in India and abroad.
After an amendment passed by Parliament of India in 2012, the Institute is now renamed as ''The Institute of Cost Accountants of India'' from '' The Institute of Cost and Works Accountants of India''. This step is aimed towards synergising with the global management accounting bodies, sharing the best practices which will be useful to large number of trans-national Indian companies operating from India and abroad to remain competitive. With the current emphasis on management of resources, the specialized knowledge of evaluating operating efficiency and strategic management the professionals are known as ''Cost and Management Accountants (CMAs)''.
The Institute is the largest Cost & Management Accounting body in the world, having approximately 6,00,000⁺ students and 1,00,000⁺ qualified professionals all over the globe. The Institute headquartered at Delhi operates through four regional councils at Mumbai, Chennai, Kolkata & Delhi and 112 Chapters situated across the country as well as 11 Overseas Centres. It functions under the jurisdiction of the Ministry of Corporate Affairs, Government of India.
Laying of Foundation Stone of the new building of the Institute at Kolkata by Shri Lal Bahadur Sastri, the then Union Minister of Commerce & Industry, on 1st December 1958 (He was Prime Minister of India during 1964 - 1966)
The new building of the Institute was inaugurated on 16th April 1961 at Kolkata by Dr. Sarvepalli Radhakrishnan, the then Vice President of India (He was President of India during 1962 - 1967)
Headquarters of the Institute at Delhi, 2025
To develop the Cost and Management Accountancy function as a powerful tool of management control in all spheres of economic activities.
To promote and develop the adoption of scientific methods in cost and management accountancy.
To develop the professional body of members and equip them fully to discharge their functions and fulfill the objectives of the Institute in the context of the developing economy.
To keep abreast of the latest developments in the cost and management accounting principles and practices, to incorporate such changes are essential for sustained vitality of the industry and other economic activities.
To exercise supervision for the entrants to the profession and to ensure strict adherence to the best ethical standards by the profession.
To organise seminars and conferences on subjects of professional interest in different parts of the country for cross-fertilisation of ideas for professional growth.
To carry out research and publication activities covering various economic spheres and the publishing of books and booklets for spreading information of professional interest to members in industrial, education and commercial units in India and abroad.
