ICAI working out separate accounting norms for SEZs
June, 23rd 2008
The Institute of Chartered Accountants of India is working out separate accounting norms for special economic zones (SEZs).
"The matter is under consideration and we have assigned the study to our research committee," ICAI President Ved Jain told PTI.
Jain said the work of studying the issues involved in the accounting procedures for the SEZs will be taken up by the research committee, which is likely to finalise its report in the next three to four months.
Giving a justification for new norms, he said many chartered accountants and chief financial officers involved with SEZ developers and companies had approached the institute and raised concerns regarding certain procedural issues.
"We have, on their request, taken up the matter and are analysing every detail of issues involved," Jain said.
The research committee will provide guidance to SEZs coming in large numbers in the country, he added.
One of the major issues concerning SEZ accounting is valuation of land taken on lease by SEZ developers, said Mahindra World City chief financial officer S Chandru.
New accounting norms will affect about 900 SEZs which are being set up in the country. While, the government has already notified 225 SEZs, 675 more are in the pipeline awaiting clearance.
Several large and small companies have joined the race to set up SEZs as they enjoy host of direct and indirect tax concessions.
Commenting on the move, Export Promotion Council for EOUs and SEZs director general L P Singhal, however, said there was no need for separate accounting norms for the SEZs.