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ICAI - New SEZ accounting norms to increase transparency
June, 19th 2009

The Institute of Chartered Accountants of India (ICAI) will soon unveil accounting norms for special economic zones (SEZs) in the country. The new norms will standardise financial disclosure of SEZs as well as bring about greater transparency.

The guidance note which is now open to the public for their suggestions seeks to bring uniformity in the manner land allotted to SEZs is to be treated. The various other aspects of accounting that are being aimed at uniformity is on the project development costs, rehabilitation and resettlement costs and of activities performed after a zone is notified.

With huge investments going into SEZ projects, the new norms will ensure that the developers are made to follow standardised norms of accounting for their investments and revenue earned, and will provide them greater clarity in maintaining their accounts, said an ICAI official, who did not wish to be named.

The objective of this technical guide is to provide guidance to developers on accounting treatment of various SEZ development activities in their financial statements. The accounting guide comes at a time when the entire concept of SEZ is being discussed with the developers demanding further incentives.

 
 
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