Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: VAT RATES :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: cpt :: articles on VAT and GST in India :: due date for vat payment :: empanelment :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd
 
 
News Headlines »
 Filing of online return for 4th quarter of 2016-17 — extension of period thereof
 CBDT simplifies ITR filing process from FY18
 Govt extends service tax return filing date to April 30
 No move to tax farm income, clarifies Arun Jaitley
 New board for indirect taxes to become operational from June 1
  9 changes that came into effect from April 1
 First time filing income tax? Here's all you need to know about Form 16 and Form 26AS
 New Opening Financial Controller Chartered Accountant (Manufacturing Plant) A Leading Company
 Income Tax Filing 2017: All you want to know about the single page ITR form SAHAJ
 How to benefit from investments in tax saving mutual funds
 60 per cent of income tax notices on fishy cash deposits returned

Confusion over issuance of accounting standards
December, 14th 2006

Globally, accounting standards (AS) are fixed by one entity only the accounting regulator of the country. A good example of this is the Public Company Accounting Oversight Board (PCAOB) in the US.

Although the Financial Accounting Standards Board (FASB) has been in existence for decades now, audit reports issued in the US now mention about the standards prescribed by the PCAOB. The PCAOB by itself has issued only four AS, but these are in concurrence with the standards issued by the FASB. Although the ICAI (Institute of Chartered Accountants of India) is still a body of the government, it can certainly be given powers to issue AS akin to the FASB. The Reserve Bank of India was proactive enough to initiate a dialogue with the ICAI and inform it that a few of its AS could not be complied with by banks.

Both the bodies then came out with clarificatory standards for banks. Another fact that cannot be ignored is that NACAS (National Committee on Accounting Standards) would probably be useful only for corporates, as the only mention of it as of now is in the Companies Act. The phenomenon now is to prescribe AS for entities, which would include companies, partnership firms and even individuals which meet prescribed criteria.

Over the years, globally and in India, AS only prescribed broad guidelines for accounting and disclosure. However, when practically implied, the devil seemed to be in the details. What has assumed more importance of late is not the broad guidelines themselves but the interpretation of AS under specific circumstances.

The International Financial Reporting Standards (IFRS) the only claimant for global accounting standards has been issuing a number of interpretations on topics as eclectic as accounting for free mileage points given by airlines and valuing stock options.

Even in India, the ICAI has been issuing interpretations of AS which have helped corporates. This is a job that NACAS may not do.

The ICAI needs to convince the Government to give it unilateral powers to prescribe AS for all entities. The ICAI is also best placed to ensure compliance given its unofficial status as the accounting regulator in India and its experience in performing this function.

Mohan R. Lavi
(The author is a Hyderbad-based chartered accountant.)

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions