ICAI proposes to introduce 3 accounting standards
The Institute of Chartered Accountants of India (ICAI) has proposed to introduce three accounting standards for local bodies by the end of this year to increase transparency in handling accounts.
By PTI |
CHENNAI: The Institute of Chartered Accountants of India (ICAI) has proposed to introduce three accounting standards for local bodies by the end of this year to increase transparency in handling accounts.
"These standards would help local bodies of various state governments to gain accountability, transparency and operational efficiency," ICAI President T N Manoharan told reporters while announcing an international conference of South Asian Federation of Accountants (SAFA) to be held here on September 30.
The accounting standards would include revenue recognition, inventory of local bodies and a provision for liabilities, he said adding that ICAI plans to introduce as many as 10 such standards in all states by 2008.
Pointing out that a sizeable number of local bodies had not disclosed their accounts for the last several years, he said uniform accounting standards would bring more value addition to the civic bodies.
State governments would be able to receive quarterly information on the accounts of local bodies and would provide data for the Management Information System, he said.
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"Southern states have awareness on the importance of accounting and Tamil Nadu, specifically, is proactive in this aspect," Manoharan said."The Committee on accounting standards for local bodies will formulate the standards and this would be forwarded to Ministry of Urban Development for endorsement," he added. He said the ICAI council would set up five new branches, taking the total number to 112.
In 2005, as many as 7455 qualified CAs joined the profession, with 83 per cent of them opting for employment and the remaining 17 per cent obtaining Certificate of Practice, he added.
"Freshers have been able to draw pay packages of up to Rs 27 lakh per annum," Manoharan said.
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He said the SAFA International conference would be held on September 30 and focus on 'Accounting profession in South Asian region - Values and perspectives', which would see participation from more than 1,000 delegates from Pakistan, Sri Lanka, Bangladesh, India and Nepal.Start a SIP with as low as ₹500 with ET Money App!
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