The Institute of Chartered Accountants of India (ICAI), as a partner in nation building, has been taking various steps to improve the Government Accounting and Public Financial Management in India. During the Council Year 2019-20, a new Committee namely the Committee on Public Finance and Accounting Standards for Local Bodies (CPF&ASLB) has been constituted in ICAI to carry forward the initiatives of two erstwhile Committees (i.e., Committee on Accounting Standards for Local Bodies (CASLB) and Committee on Public Finance and Government Accounting (CPF&GA)). Amongst others, the primary activities of the erstwhile CASLB was to prescribe accrual based accounting framework, i.e., Accounting Standards for Local Bodies(ASLBs) which is being carried forward under the newly constituted Committee.
It is worth appreciating that the Local Bodies in India are shifting to accrual basis of accounting and are drawing accounting guidance from National Municipal Accounts Manual (NMAM) in this regard that was issued during 2004.
ASLBs are being issued by the ICAI as an extension of NMAM incorporating the accounting developments over these 15 years and also to address the areas that are not covered in NMAM. ASLBs based upon on based on the International Public Sector Accounting Standards (IPSASs) that are International best Accounting Standards for all level of Governments and also takes into account the India’s unique governance & demographic features. Fifteen ASLBs were issued by the erstwhile CASLB. Moving forward in this direction, the newly constituted Committee, i.e., CPF&ASLB has finalised the Exposure Drafts of the following ASLBs:
(Download Exposure Drafts: https://www.icai.org/comments/caslb/)
Now-a-days Local Bodies are entering into various service concession arrangements also known as Public Private Partnership (PPP) for developing/improving infrastructure of the country. The assets (held by the local bodies for either generating cash flows or service delivery purposes) get impaired due to certain reasons such as unexpected decline in the asset’s service utility, etc. The aforesaid ASLBs being issued by the ICAI would provide detailed accounting guidance for the same would be very useful for Local Bodies.
The comments on the above Exposure Drafts are invited which can be submitted using one of the following methods, so as to be received not later than July 25, 2019:
1. Electronically: Click on http://www.icai.org/comments/caslb/ to submit comments online
2. E-mail: Comments can be sent to: email@example.com; firstname.lastname@example.org
3. Postal: Head, Technical Directorate The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi 110002