Accounting standards

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2012 Dear Sir,

Is Companies Act Accounting Standard are different from ICAI Accounting standards?? and is there any rule that, for Stat audit,we have to refer only Companies Act accounting standards???

Please give me an answer.....

Sanjay Chauhan (IFRS)

Sanjay Chauhan (IFRS) (Expert)
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21 July 2012 COmpanies Act Section 211 governs the compliance of accounting standards.

All the standards that are notified by the MCA are part of Companies Act.

Thus all the standards issued by ICAI are first to be notified by ministry.

As part of Stat auidt, the auditor has to comply with Companies Act and also auditing standards.

As per auditing standrads, if ICAI has issued any guidance notes, it is to be followed by auditor. Hence it becomes necessary for the company to follow guidance notes as well even if they are not notified by MCA.

Sanjay.

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