The Hindu Business Line : ICAI finalises accounting standard for debt, equity

THE Institute of Chartered Accountants of India (ICAI) has finalised an accounting standard relating to financial instruments, both equity and debt. The institute is of the view that the standard will seek to go a step ahead of the relevant international accounting standards even while creating a sense of transparency among users.

Mr Kamlesh S. Vikamsey, President of ICAI, told newspersons here that the institute is also working on revising some of the existing standards, including Accounting Standard 1. Further, the ICAI is keen to provide a standard for SMEs as it appreciates the need to devise simple and uncluttered principles for small and medium businesses.

On another front, the institute has proposed to take action against two members who had allegedly played a part in the Madhavpura Merchantile Co-operative Bank case. The institute, which has been dealing with a number of disciplinary issues, plans to play a constructive role in this matter, Mr Vikamsey mentioned.

Meanwhile, a few religious bodies and charitable institutions have sought exemption with regard to the newly imposed fringe benefit tax, the ICAI has noted. It has sought to take up their case before the Government.

As for allowing overseas accounting firms to operate in India on their own, the institute is of the view that the Government must remove some of the shackles that bind local firms, said Mr Manoharan T.N., Vice-President of ICAI.

Foreign firms must be allowed on the basis of reciprocity — players based in other countries must be permitted only if Indian firms too are allowed in those countries, he pointed out, adding that limited liability partnerships may well hold the key to the formation of effective policies on this front.

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