Reason for forming nacas?

Nitin Singhal (Gaining knowledge...) (320 Points)

21 February 2012  

Hello Friends,

I want to ask what was the reason(and even objective) behind forming National Advisory Committee of Accounting Standards (NACAS as it is well known). And what is the reason behind Company (Accounting Standard) Rules, 2006?

Before these rules the AS prescribed by ICAI were applicable to companies. And also the AS prescribed by NACAS (and notified by Govt.) are almost the same as have been prescribed by ICAI. Then what is the reason behind notifying separate AS for companies when Govt. could have easily said that AS prescribed by ICAI would be applicable to companies as well. Why they created complexities by Notifying their own standards even when they are no different from the accounting standards prescribed by ICAI?