Adopt govt rules on accounting: ICAI to Sebi
ICAI has asked capital market watchdog Sebi to make companies conform to only those accounting norms that have been notified by the government.
By ET Bureau |
New Delhi: In a bid to make the process of convergence to international financial reporting standards (IFRS) easier for India Inc, the country���s accounting regulator ICAI has asked capital market watchdog Sebi to make companies conform to only those accounting norms that have been notified by the government.
The Institute of Chartered Accountants of India wants Sebi to make changes in its accounting treatment prescribed in the listing norms for companies and bring them on par with the directives of the National Advisory Committee on Accounting Standards (Nacas) ���an expert body under the corporate affairs ministry.
While Sebi asks companies to prepare financial statements as per the accounting standards issued by ICAI, Nacas feels only those standards should be followed that have been notified by the government.
���We have made a presentation before the accounting standard committee of Sebi, asking them to ensure compliance of only those accounting guidelines that have been notified by the government,��� ICAI accounting standard board chairman Amarjit Chopra said.
With less than three years left for the country to fully converge with the globally accepted accounting norms, the idea is to help corporates easily get their present accounting policies in consonance with IFRS. ���We can���t put companies into difficult circumstances,��� Mr Chopra told ET. This would also ensure that companies get more time in complying with more challenging accounting norms on complex instruments.
ICAI also wants the government to revise the threshold limit defining a public-interest entity, which is mandatorily required to adopt IFRS. The regulator has also urged insurance regulator Irda to take steps to ensure timely convergence with the global norms.
The Institute of Chartered Accountants of India wants Sebi to make changes in its accounting treatment prescribed in the listing norms for companies and bring them on par with the directives of the National Advisory Committee on Accounting Standards (Nacas) ���an expert body under the corporate affairs ministry.
While Sebi asks companies to prepare financial statements as per the accounting standards issued by ICAI, Nacas feels only those standards should be followed that have been notified by the government.
���We have made a presentation before the accounting standard committee of Sebi, asking them to ensure compliance of only those accounting guidelines that have been notified by the government,��� ICAI accounting standard board chairman Amarjit Chopra said.
With less than three years left for the country to fully converge with the globally accepted accounting norms, the idea is to help corporates easily get their present accounting policies in consonance with IFRS. ���We can���t put companies into difficult circumstances,��� Mr Chopra told ET. This would also ensure that companies get more time in complying with more challenging accounting norms on complex instruments.
ICAI also wants the government to revise the threshold limit defining a public-interest entity, which is mandatorily required to adopt IFRS. The regulator has also urged insurance regulator Irda to take steps to ensure timely convergence with the global norms.
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