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ICAI to enforce accounting norms for local bodies
September, 29th 2006
Council proposes about 10 accounting standards -------------------------------------------------------------------------------- "These standards would help local bodies become more transparent and accountable to the public." -------------------------------------------------------------------------------- The Institute of Chartered Accountants of India (ICAI) plans to implement four accounting standards for local bodies of state governments over the next three months. Standards would be implemented in areas such as revenue recognition, inventory, recognition of liability and provisions, said Mr T.N. Manoharan, President, ICAI. These standards would help local bodies become more transparent and accountable to the public, he said. "Local bodies would make disclosures and function like a corporate entity," he said. Management info The standards would also serve as management information systems providing data on potential cost centres and revenue centres within the local body jurisdiction. The Council of ICAI has proposed about 10 accounting standards (totally) for local bodies. "We expect the remaining six standards to be implemented next year," said Mr Manoharan. ICAI, the Institute of Cost and Works Accountants and South Asian Federation of Accountants (SAFA) will organise a three-day seminar on `Accounting profession in South Asian region' starting from September 29 at the Chennai Trade Centre. SAFA, comprising accounting bodies in the South Asian region, is an apex body of South Asian Association for Regional Cooperation (SAARC). The seminar will discuss issues such as harmonising accounting standards among the SAARC member nations, capacity building of small and medium practitioners and expectations from professionals in the emerging capital market scenario. About 700 delegates from India, Pakistan, Sri Lanka, Bangladesh and Nepal are expected to attend the event, said Mr Manoharan.
 
 
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