The Hindu Business Line : ICAI moots different accounting system for Govt-run bodies

IN order to create awareness regarding the importance of accounting standards, the Institute of Chartered Accountants of India (ICAI) feels that it is imperative to promote the concept of different accounting system for Government-run bodies.

Speaking at a conference jointly hosted by ICAI and the Public Sector Committee of the International Federation of Accountants (IFAC) on `Enhancing accountability and good governance in the public sector', Mr Sunil Goyal, President of ICAI, said, "the Institute has already constituted a sub-committee of the Accounting Standard Board (ASB) to formulate accounting standards for various Government bodies such as local bodies."

This he stated while outlining the initiatives undertaken by the Institute in moving towards convergence with the international accounting, auditing and assurance standards promulgated by the International Accounting Standards Board (IASB), and the International Auditing and Assurance Standards Board (IAASB) of IFAC.

Ensuring good governance in the public sector is placed prominently in governmental policy formulation agenda in the second stage of economic reforms, said Dr Ashok Haldia, Secretary of ICAI.

India nominated: Earlier in his address, Mr Philippe Adhemar, Chairman of Public Sector Committee of IFAC, informed that India would shortly be represented on the public sector committee of IFAC and ICAI representatives will assume its membership.

IFAC is a conglomerate of 157 accounting bodies spread across 118 countries, of which ICAI is a founder member.

IFAC has among others a public sector committee, which addresses the management, accounting, auditing and financial reporting needs of Governmental agencies by issuing and promoting benchmark guidance note. This committee comprises members and technical advisors from 15 countries, representatives of public sector organisations, accountancy professionals and academe.

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