Procedure for setting Accounting Standards in India

by

Procedure for setting Accounting Standards in India/Standard Setting Process:-

ICAI is the premiere accounting body in India who constituted Accounting Standards Board (ASB) in 1977. Accounting standards are developed by the ASB. The ASB considered the International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) while framing Accounting Standards (AS) in India and tried to integrate them

The Procedure of ASB for setting accounting standards in India is defined as:-

  • first of all, broad areas are to be found out by ASB for formulation of accounting standards.
  • Study group is constituted by ASB for preparing preliminary drafts. The draft normally includes definitions, objective, scope, recognition and measurement principles.
  • Consideration and revision of draft, if any,.
  • Circulation of draft to members of the council and various bodies such as:-
  1. Members of ICAI.
  2. MCA
  3. SEBI
  4. C&AG
  5. CBDT etc. for comments.
  • Taking into consideration the comments of bodies and meeting with the representatives of the bodies.
  • Finalisation of exposure draft and issue for public comments.
  • After consideration of comments received on exposure draft, submit to the council of ICAI for consideration and approval.
  • The council of ICAI, if necessary, do modification in consultation with ASB.
  • Finally, Accounting standard is issued.

Leave a Comment