The Institute of Cost Accountants of India
(Statutory body under an Act of Parliament)
History of the Profession
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 defense 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 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.
It has since been continuously contributing to the growth of the industrial and economic climate of the country.
The Institute of Cost Accountants of India is the only
recognised statutory professional organisation and licensing body in
India specialising exclusively in Cost and Management Accountancy.
A Cost Accountant is a person who offers to perform or perform
services involving the costing or pricing of goods and services or the
preparation, verification or certification of cost accounting and
The head office is situated at 12, Sudder Street, Kolkata 700 016 and
operates through four regional councils are Kolkata, Chennai, Delhi and
Mumbai as well as through a number of important chapters situated
elsewhere in India and abroad.
Objectives of the Institute
©2021 icmai.in. All Rights Reserved.