The Institute of Chartered Accountants of India (ICAI) is in the final stage of formulating the accounting standard for financial instruments in India.
T N Manoharan, president, ICAI said that the draft of the accounting standard will be released by September for consultation with different stake holders.
Manoharan said, "The draft will be released by September for consultation. It will be finalised within this December. The accounting standard for financial instrument will also include derivative products."
ICAI was taking into consideration views of the Reserve Bank of India (RBI) while finalising the accounting standard, he added.
Meanwhile, ICAI has also initiated its work for framing accounting standard in agricultural income.
"We have just started working on the accounting standard in agricultural income. It is in an initial stage," he added.
On the other hand, ICAI is in final stage of submitting the road map for implementing 'accrual system of accounting' in government accounts.
"Government of India adopts 'cash system of accounting' which is based on actually receipts and payment. We are in the process of formulating the road map for implement 'accrual based system of accounting," said Manoharan. The work is done by ICAI in a sub-committee under Government Accounting Standards Advisory Board (GASAB).
"We have had two meetings with GASAB. The road map will be prepared by this month end," he confirmed.