Question

Procedure for issuing accounting standards in india

Answer 1

of issuing accounting standards in India?

PROCEDURE FOR ISSUING

AN ACCOUNTING STANDARD FOR LOCAL BODIES (ASLB)

Broadly, the following procedure is adopted for formulating Accounting

Standards for Local Bodies:

1. Determine the broad areas in which Accounting Standards need to

be formulated and the priority in regard to the selection thereof.

2. For the preparation of the Accounting Standards, the CASLB will

be assisted by Study Groups constituted to consider specific

subjects. In the formation of Study Groups, provision will be made

for wide participation by various interest groups.

3. The draft of the proposed standard will normally include the

following:

a. Objective of the Standard,

b. Scope of the Standard,

c. Definition of the terms used in the Standard,

d. Recognition and measurement principles, wherever

applicable,

e. Deviations, if any, from the corresponding International

Public Sector Accounting Standard (IPSAS), as an Appendix

to the Standard.

4. The CASLB will consider the preliminary draft prepared by the

Study Group and if any revision of the draft is required on the basis

of deliberations, the CASLB will make the same or refer the same to

the Study Group.

5. The procedure for issuance of an Interpretation on any Accounting

Standard for Local Bodies will be the same as that for issuance of an

Accounting Standard since the authority of an Interpretation is the

same as that of Accounting Standard for Local Bodies to which it

relates.

6. The CASLB will circulate the draft of the Accounting

Standard/Accounting Standards Interpretation for Local Bodies to

the Council members of the ICAI and the following specified

bodies for their comments:

a. Comptroller and Auditor General of India (C&AG)b. Ministry of Urban Development, Government of India

c. Controller General of Accounts

d. Ministry of Panchayati Raj, Government of India

e. National Institute of Urban Affairs

f. Directorates of Local Bodies of the State Governments

g. Directorates of Local Fund Audit Department of the State

Government

h. Major Local Bodies

i. National Institute of Financial Management

j. Securities and Exchange Board of India