The Hindu Business Line : Accounting standards

Disclosure norms under the companies act and accounting standards are independent of the court decisions. The court has not given the decision to deviate from disclosure norms. The law and accounting can have differing views.

Those who prepare accounts are neither well-trained nor well-qualified. They also do not have any continuing education inside or outside the company. This results in poor quality of accounting. The auditors try improve on the accounts that the company presents to them, but they have such constraints as time.

ICAI Financial Reporting Review Committee should take up the issues of differences in reporting and understanding the terminology used in accounts. The Internal Audit Committee of the ICAI should quickly issue standards relating to various aspects of internal audit covering the entire gamut of governance, reporting, control, risk and fraud.

Ramachandran Mahadevan

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Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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