Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TDS :: due date for vat payment :: articles on VAT and GST in India :: list of goods taxed at 4% :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: form 3cd :: cpt :: empanelment :: ACCOUNTING STANDARDS :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4%
 
 
General »
 Advance tax payout by top cos grows just 2% in Sept quarter
 Why abolishing personal income tax may not be a good idea
 Questions about the GST cess
 How to prepare for the looming tax-extension deadline
 Income tax: Gratuity for employees raised to Rs 20 lakh; here is how you will benefit
 Haryana to set up scrutiny panel on GST benefits
 Waive certain taxes for companies in insolvency proceeding
 I-T department to appoint 7600 more tax return preparer scheme to cover entire country
 All eyes are on GST as Centre plans higher social pension
 Exporters demand total exemption from GST
 Here's what you must know to stay clear of taxman

Centre to shift to modern accounting system
May, 08th 2009

Nearly five years after the 12th Finance Commission recommended an accrual-based accounting in government, the Centre has finally decided to shift to the modern accounting system by asking the Comptroller and Auditor General (CAG) to draw a roadmap for migration to the new arrangement in the next five years.

The current system, both in states and at the Centre, is on cash-based accounting which was introduced during the British period. According to CAG, the prevailing system is deficient on transparency and user-friendliness. Cash-based accounting cannot effectively fix accountability for performance.

"Transactions where no cash has been paid or received are not recorded even if value has been received or a liability contracted under the current system," said a senior CAG official. Under the present system, while it is difficult to keep track of assets, it is easy to understate liabilities.

The decision to migrate to the accrual based accounting system was taken at a high-level meeting of the Government Accounting Standards Advisory Board (GASAB), which has senior officials from the Centre and states as its members. The meeting was attended by principal secretaries from state governments, officials from Department of Posts, Accountants General of various states and World Bank officials.

The accrual-based financial statements are expected to provide more appropriate presentation of financial performance and position of the government. The Central government accounts and those of the states would have a common format of financial statements that would include a balancesheet, a statement on financial performance and cash flow.

Pilot studies on accrual basis accounting have already been introduced in Department of Posts and selected departments of Andhra Pradesh, Madhya Pradesh, Haryana and West Bengal. These pilot studies would be a precursor to a national rollout which is aimed for a five-year time frame.

The pilot studies would be conducted by teams from the State Accountant General offices with international and national consultants with the support of state governments. The World Bank is funding these pilot projects.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

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