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OBJECTIVES AND FUNCTIONS OF THE ACCOUNTING STANDARDS BOARD

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									OBJECTIVES AND FUNCTIONS OF THE ACCOUNTING STANDARDS
BOARD
1. The following are the objectives of the Accounting Standards Board:

  (i) To conceive of and suggest areas in which Accounting Standards need to be
  developed.

  (ii) To formulate Accounting Standards with a view to assisting the Council of the
  ICAI in evolving and establishing Accounting Standards in India.

  (iii) To examine how far the relevant International Accounting
  Standard/International Financial Reporting Standard (see paragraph 3 below) can
  be adapted while formulating the Accounting Standard and to adapt the same.

  (iv) To review, at regular intervals, the Accounting Standards from the point of
  view of acceptance or changed conditions, and, if necessary, revise the same.

  (v) To provide, from time to time, interpretations and guidance on Accounting
  Standards.

   (vi) To carry out such other functions relating to Accounting Standards.
2. The main function of the ASB is to formulate Accounting Standards so that such
   standards may be established by the ICAI in India. While formulating the
   Accounting Standards, the ASB will take into consideration the applicable laws,
   customs, usages and business environment prevailing in India.
3. The ICAI, being a full-fledged member of the International Federation of
   Accountants (IFAC), is expected, inter alia, to actively promote the International
   Accounting Standards Board’s (IASB) pronouncements in the country with a view
   to facilitate global harmonisation of accounting standards. Accordingly, while
   formulating the Accounting Standards, the ASB will give due consideration to
   International Accounting Standards (IASs) issued by the International Accounting
   Standards Committee (predecessor body to IASB) or International Financial
   Reporting Standards (IFRSs) issued by the IASB, as the case may be, and try to
   integrate them, to the extent possible, in the light of the conditions and practices
   prevailing in India.
4. The Accounting Standards are issued under the authority of the Council of the
   ICAI. The ASB has also been entrusted with the responsibility of propagating the
   Accounting Standards and of persuading the concerned parties to adopt them in
   the preparation and presentation of financial statements. The ASB will provide
   interpretations and guidance on issues arising from Accounting Standards. The
   ASB will also review the Accounting Standards at periodical intervals and, if
   necessary, revise the same.
COMPOSITION OF THE ACCOUNTING STANDARDS BOAR0
(for the period from 05-2-2007 to 04-2-2008)
Elected Members of the Council of ICAI on the Accounting Standards Board:
CA. Amarjit Chopra, Chairman             New Delhi
Shri Pankaj I. Jain, Vice-Chairman       Mumbai
CA. Sunil H. Talati, President           Ahmedabad
(Ex-officio)
CA. Ved Kumar Jain, Vice-President       New Delhi
(Ex-officio)
CA. Rajkumar S. Adukia                   Mumbai
CA. Sanjeev K. Maheshwari                Mumbai
CA. Mahesh P. Sarda                      Jamnagar
CA. S. Gopalakrishnan                    Hyderabad
CA. S. Santhanakrishnan                  Chennai
CA. Abhijit Bandopadhyay                 Kolkata
CA. Manoj Fadnis                         Indore
CA. Harinderjit Singh                    New Delhi
Nominees of the Central Government on the Council of ICAI on the Accounting
Standards Board:
Shri Jitesh Khosla,                      Ministry of Company Affairs
Joint Secretary, New Delhi
Shri A.K. Awasthi, Director General      Office of the Comptroller and Auditor
(Commercial), New Delhi                  General of India
Shri R. Sekar, Joint Secretary (TRU-II), Central Board of Excise and Customs
New Delhi
Co-opted Members/Special Invitees
CA. Rahul Roy, Kolkata                   Federation of Indian ChambersOf
                                         Commerce & Industry (FICCI)
CA. Manish Dawar, Gurgaon                Associated Chambers of Commerce
                                         &Industry (ASSOCHAM)
CA. Sanjay Grover, New Delhi             Institute of Company Secretaries of India
                                         (ICSI)
CA. A.N. Raman, Chennai                  Institute of Cost and Works Accountants
                                         of India (ICWAI)
CA. P.R. Ramesh, Hyderabad               Co-opted by the ICAI
Shri P.R. Ravi Mohan, Mumbai             Reserve Bank of India (RBI)
CA. Uday Phadke, Mumbai                  Confederation of Indian Industry (CII)
CA. P. Sitaram, Mumbai                   Industrial Development Bank of India
                                         (IDBI)
Dr. Vijay Gupta, Indore                  Indian Institute of Management (IIM),
                                         Indore
Nomination Awaited                      Securities and Exchange Board of India
                                        (SEBI)
Smt. Sonali Singh, New Delhi            Office of the Controller General of
                                        Accounts (CGA)
Nomination Awaited.                     University Grants Commission
Ms. Mamta Suri, Hyderabad               Insurance Regulatory and Development
                                        Authority (IRDA)
Shi B.D. Vishnoi, New Delhi             Central Board of Direct Taxes
CA. Atul Chunilal Bheda, Mumbai         Chairman, Expert Advisory Committee of
                                        ICAI
CA. Shanti Lal Daga, Hyderabad          Chairman, Research Committee of ICAI
Dr. Avinash Chander, Technical Director Secretary to the Board
RECENT SIGNIFICANT ACHIEVEMENTS
Released
    Release of Compendium of Accounting Standards (ASs) as on July 1, 2006,
       covering ASs 1-29 and Accounting Standards Interpretations (ASIs) and
       Announcements on accounting aspects issued up to that date along with CD.
    Revision of Accounting Standards Interpretation (ASI) 14, Disclosure of
       Revenue from Sales Transactions (Re.: AS 9, Revenue Recognition).
    Issuance of Guidance Note on Recognition of Revenue by Real Estate
       Developers

Announcements issued
   Applicability Date of Announcement on ‘Accounting for exchange
     differences arising on a forward exchange contract entered into to hedge the
     foreign currency risk of a firm commitment or a highly probable forecast
     transaction’ .
   Deferment of Applicability of Announcement on ‘Accounting for exchange
     differences arising on a forward exchange contract entered into to hedge the
     foreign currency risk of a firm commitment or a highly probable forecast
     transaction’.

Exposure Drafts Issued
    Revised Accounting Standard (AS) 10, Tangible Fixed Assets.
    Proposed Accounting Standard (AS) 30, Financial Instruments: Recognition
      and Measurement.
    Proposed Accounting Standard (AS) 31, Financial Instruments: Presentation.
      Consequent to above proposed Accounting Standards, Exposure Drafts of the
      Limited Revisions to the following Accounting Standards have been issued.
    Accounting Standard (AS) 2 (revised 1999), Valuation of Inventories.
    Accounting Standard (AS) 11 (revised 2003), The Effects of Changes in
      Foreign Exchange Rates.
      Accounting Standard (AS) 21 (issued 2001), Consolidated Financial
       Statements and Accounting for Investments in Subsidiaries in Separate
       Financial Statements.
      Accounting Standard (AS) 23 (issued 2001), Accounting for Investments in
       Associates.
      Accounting Standard (AS) 26 (issued 2002), Intangible Assets.
      Accounting Standard (AS) 27 (issued 2002), Financial Reporting of Interests
       in Joint Ventures.
      Accounting Standard (AS) 28 (issued 2002), Impairment of Assets.
      Accounting Standard (AS) 29 (issued 2003), Provisions, Contingent
       Liabilities and Contingent Assets.

Submission of comments to International Accounting Standards Board (IASB)
    Exposure Draft of proposed IFRS on Operating Segments.
    Discussion paper on Management Commentary
    Exposure Draft of proposed amendments to IAS 32, Financial Instruments;
      Presentation
    Exposure Draft of proposed amendments to IAS 1, Presentation of Financial
      Statements
    Proposed amendments to IAS 16, Borrowing Costs.


Submission of comments to the RBI
    Draft revised Guidelines regarding ‘Classification and Valuation of
      Investments’.

INITIATIVES
Finalisation of the drafts of proposed/revised Accounting Standards for public
exposure
    Revised Accounting Standard (AS) 1, Presentation of Financial Statements.
    Revised Accounting Standard (AS) 5, Net Profit or Loss for the Period, Prior
       Period Items and Changes in Accounting Policies.
       Consequent to above revised Accounting Standards, Limited Revisions to the
       following Accounting Standards are being proposed:
            Accounting Standard (AS) 3 (revised 1997), Cash Flow Statements.
            Accounting Standard (AS) 17 (Issued 2000), Segment Reporting.
            Accounting Standard (AS) 20 (Issued 2001), Earnings Per Share.
            Accounting Standard (AS) 23 (Issued 2001), Accounting for
               Investments in Associates.
            Accounting Standard (AS) 25 (Issued 2002), Interim Financial
               Reporting.

Finalisation of the drafts of proposed/revised Accounting Standards for
circulation among the Institute’s Council Members and specified outside bodies
(limited exposure)
        Revised accounting Standard (AS) 12, Accounting for Government Grants
         and Disclosure of Government Assistance
        Proposed Accounting Standard on Non-Current Assets Held for Sale and
         Discontinued Operations (corresponding to IFRS 5)

Subjects on which new Accounting Standards are under preparation
    Financial Instruments: Disclosures (corresponding to IFRS 7)
    Share-based Payment (corresponding to IFRS 2)
    Insurance Contracts (corresponding to IFRS 4)
    Agriculture (corresponding to IAS 41)
    Accounting and Reporting by Retirement Benefit Plans (corresponding to
       IAS 26)
    Investment Property (corresponding to IAS 40)


Accounting Standards under revision
    Accounting Standard (AS) 4, Events After the Balance Sheet Date
    Accounting Standard (AS) 9, Revenue Recognition
    Accounting Standard (AS) 14, Accounting for Amalgamations


Other project in pipeline
    Revision of ‘Guidance Note on Terms Used in the Financial Statements’
    Constitution of Task Force for preparation of a paper on accounting for
       entities subject to tariff fixation such as electricity companies, to be
       considered by the National Standards-Setters.
    Constitution of Task Force for preparation of a Concept Paper on the issue of
       convergence with the International Accounting Standards (IASs)/
       International Financial Reporting Standards (IFRSs).

DETAILS OF PROJECTS IN PROGRESS ACCOUNTING STANDARDS BOARD
I.   Formulation of New Accounting Standards

         1. Financial Instruments: Disclosures (corresponding to IFRS 7)

         2. Share-based Payment (corresponding to IFRS 2)

         3. Insurance Contracts (corresponding to IFRS 4)

         4. Agriculture (corresponding to IAS 41)

         5. Accounting and Reporting by Retirement Benefit Plans (corresponding
            to IAS 26)

         6. Investment Property (corresponding to IAS 40)
       7. Non-Current Assets Held for Sale and Discontinued Operations
          (corresponding to IFRS 5)

II. Accounting Standards under revision

       1. Accounting Standard (AS) 1, Disclosure of Accounting Policies (revised
          Standard to be titled as Presentation of Financial Statements)

       2. Accounting Standard (AS) 4, Contingencies and Events Occurring After
          the Balance Sheet Date (revised Standard to be titled as Events
          Occurring After the Balance Sheet Date)

       3. Accounting Standard (AS) 5, Net Profit or Loss for the Period, Prior
          Period Items and Changes in Accounting Policies (revised Standard to be
          titled as Accounting Policies, Changes in Accounting Estimates and
          Errors)

       4. Accounting Standard (AS) 9, Revenue Recognition

       5. Accounting Standard (AS) 14, Accounting for Amalgamations

       6. Accounting Standard (AS) 12, Accounting for Government Grants
          (revised Standard to be titled as Accounting for Government Grants and
          Disclosure of Government Assistance)

       7. Accounting Standard (AS) 10, Accounting for Fixed Assets (revised
          Standard to be titled as Property, Plant and Equipment)

III. Other Projects

       1. Revision of Guidance Note on Terms used in Financial Statements

       2. Constitution of Task Force for preparation of an approach paper on
          Accounting for Tariff Regulated Entities such as electricity companies,
          to be considered by the National Standards-Setters, further to be
          considered by IASB.

       3. Constitution of Task Force for preparation of a Concept Paper on the
          issue of convergence with the International Accounting Standards
          (IASs)/ International Financial Reporting Standards (IFRSs).
 Reporting Standards (IFRSs).

								
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