All educational institutions in the country should be required to apply accrual basis of accounting. This has been recommended to the Government by a working group on implementation of accounting standards in educational institutions.
The working group comprised CA institute members besides those nominated by the HRD Ministry. The working group’s report was submitted to the Union HRD Minister, Mr Kapil Sibal, by the CA Institute President, Mr G. Ramaswamy, here on Wednesday.
Currently, the accounting and financial reporting practices of educational institutions in India are oriented towards meeting the needs of the governing bodies running them. Educational institutions follow not only diverse accounting practices but also different basis of accounting.
The working group has also suggested that accounting standards issued by CA institute should be made mandatory to educational institutions.
All educational institutions should follow a common format for the presentation of their general purpose financial statements to ensure proper accountability, financial discipline, end-use of funds and to meet the needs of stakeholders, the report said.