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: ACCOUNTING STANDARD :: due date for vat payment :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: VAT Audit :: empanelment :: TDS :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: articles on VAT and GST in India
 
 
News Headlines »
 What to do if you get an income tax notice after demonetisation
 SBI calls for raising income tax exemption limits
 Did you know? The tax exemption on your HRA
 Income Tax Department expands list of deposits, transactions under scrutiny
  Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962
 Master Directions on Access Criteria for Payment Systems
 RBI-Scheduled Bank's Statement of Position in India as on Friday, January 06, 2017 (Revised)
 3 Big Mistakes To Avoid This Tax Season
 The Top 5 Tax Stories Of 2017
 Are multiple service tax rates in the offing?
 All you need to know about claiming tax break on HRA

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