Apex accounting body ICAI has raised objections to the recommendations of the Rakesh Mohan Committee on more autonomy to the Accounting Standards Board, an arm of the regulator, saying that the panel hasn’t suggested anything that is already not in place.
“The composition of the Accounting Standards Board (ASB) is fairly broad-based and ensures participation of all interest groups in the standard-setting process,” Institute ofof India President Uttam Aggarwal told reporters here.
The Board frames accounting norms and financial reporting procedures. The Rakesh Mohan Committee on Financial Sector Assessment has suggested that functional autonomy be given to the ASB.
The institute, however, objected to the recommendations saying the ASB already has the autonomy, that has been talked about.
To put it in context, the ICAI said a final draft of any proposed accounting standard can be submitted only to the council of the accounting body after the ASB approves. Also, if there are any modifications proposed by the council, they can made only in consultation with the ASB.
“As such the procedure in place not only provides for a pivotal role to the ASB but also ensures functional autonomy of ASB in substance,” it said.