ICAI advocates uniform financial statement for co-ops

The Institute of Chartered Accountants of India (ICAI) is advocating ICA pronounced accounting standard for the co-operative sector and non-profit organisations (NPO).

The Association President, Mr G. Ramaswamy, told presspersons here today that the institute was working on uniform financial statement and uniform disclosures for the co-operative sector and NPOs.

“The corporate sector is following such disclosure norms at present. There is a need to streamline audit and raise the level of governance in the co-operative sector and NPOs, and usher uniform compliance with appropriate accounting standards. NPOs, particularly educational institutions receive huge sums as donation from within and outside India, which need to be deployed in a manner required under the law; tendering procedures need to be streamlined,” he said.

Gujarat and Maharashtra were the only states in the country that had State laws governing the co-operative sector, he said.

Mr Ramaswamy said, “there is no corporate governance or regulatory disclosures for this sector. We therefore will have to address such issues. It will be a key growth sector.”

The ICAI President said, “certain changes in the disciplinary mechanism are on the cards, including taking up public interest cases in priority.

“In the current year, to conclude disciplinary proceedings in the Satyam case at the earliest, a Disciplinary Committee has been set up exclusively for the same, to complete hearing on a fast-track mode. We have sought the Centre's support for making necessary amendments to the Act and bestow powers to enable us initiate action against erring firms without delay. Generally, the action is contemplated only against individual members. But the institute needs powers to ensure that big corporate scandals can be averted in future,” he added.

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