Companis Accounting Standard Rules 2009

In exercise of the powers conferred by Sec 642(1)(a) of the Companies Act, 1956, read section 211(3C) and 210A(1), the Central Government, in consultation with National Advisory Committee on Accounting Standards, has issued the following rules, namely Companies (Accounting Standards) Rules, 2006 (amended in 2009).

Section 210A

CONSTITUTION OF NATIONAL ADVISORY COMMITTEE ON ACCOUNTING STANDARDS.

“ The Central Government may, by notification in the Official Gazette, constitute an Advisory

Committee to be called the National Advisory Committee on Accounting Standards (hereafter in

this section referred to as the "Advisory Committee") to advise the Central Government on the

formulation and laying down of accounting policies and accounting standards for adoption by

companies or class of companies under this Act. “

Section 211(3C) “ For the purposes of this section, the expression "accounting standards" means the standards of accounting recommended by the Institute of Chartered Accountants of India

constituted under the Chartered Accountants Act, 1949 (38 of 1949) as may be prescribed by the

Central Government in consultation with the National Advisory Committee on Accounting

Standards established under sub-section (1).”

The Central Government has prescribed the Accounting Standards 1 to 7 and 9 to 29 as recommended by the Institute of Chartered Accountants of India, which are specified in the Annexure to these rules.

The Accounting Standards shall come into effect in respect of accounting periods commencing on or after the publication of these Accounting Standards. Every company and its auditor(s)shall comply with the Accounting Standards in the manner specified in Annexure to these rules.

Previously AS 1 & 2 were made compulsory. Now with the introduction of these rules all accounting standards have been made compulsory within the prescribed limits of these rules.