The Hindu Business Line : Good accounting standards urged

SPEAKERS at the conference on Indian accounting standards organised by CII-Kerala pointed out that best corporate governance will include best accounting standards.

Mr S.D. Balasubramanyan, who is the author of First Lessons in Accounting Standards, said that there is a need to keep in pace with changes in the business and economic environment. There is also a need to be in tune with global standards, which in turn, will accelerate the ability of Indian companies to compete overseas, he added.

Mr L.Venkatesan, Advisor, TVS Electronics Ltd, made a presentation on AS 28, which focuses on impairment of assets. The AS 28 is needed to state impaired assets at value not more than recoverable amount. The misuse of accounting practices could lead to huge capitalisation of pre-operative expenses, he said.

He emphasised that AS 28 focuses on accounting for the impairment of all assets other than inventories, assets arising from construction contracts, deferred tax assets and financial assets.

In his presentation, Mr S. Santhanakrishnan, Council Member, ICAI and Director of Federal Bank, stated that the Enron incident proved that the Indian accounting standards are far better than the American standards.

Mr Mahendra Jain, Partner, S.R. Batliboi and Co, made a presentation on the ASD 26 intangible assets where he focussed on prescribe accounting treatment for intangible assets not dealt with specifically in another.

He also focussed on the critical aspects of intangible assets such as identifiably, control and future economic benefits.

Earlier in his welcome address, Mr A. Gopalakrishnan, co-convenor of Economic Affairs Panel, CII-Kerala, highlighted that CII is keen to enrich the knowledge of the industry and business establishments.

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