ICAI to bring new accounting norms for insurance sector

MUMBAI: The Institute of Chartered Accountants of India (ICAI) is planning to come up with new accounting norms specific to insurance sector. "The new accounting standards will provide more information to stakeholders," a top ICAI official said. To serve this very purpose, the accounting body ICAI has appointed an expert committee that has already started working on it.

"We are working for insurance industry-specfic accounting standards which will give a thorough and fair view of accounts of the insurance companies. These standards will come in the form of recommendations," ICAI president Uttam Prakash Agarwal said.

He added, "The recommendations once approved will become mandatory. Presently, there are 32 accounting standards followed by all companies of different sectors."

"We have 32 notified accounting standards which are common for all companies. But there is more information which these 32 standards are not able to give. The new accounting norms to be recommended by ICAI will be additional to the existing notified accounting standards, Agarwal said.