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CMA Final · Corporate Financial Reporting · Government Accounting in India

The Government Accounting Standards Advisory Board (GASAB) recommends Indian Government Accounting Standards (IGAS). Which statement about the role of this framework is correct?

GASAB, the Government Accounting Standards Advisory Board, is set up by the Comptroller and Auditor General of India with the Government of India's consultation. It formulates Indian Government Accounting Standards for Government accounting and reporting, unlike Ind AS, which applies to companies.

  1. AGASAB is a body under the Comptroller and Auditor General of India that formulates standards for Government accountingCorrect
  2. BGASAB is a committee of ICAI that issues Ind AS for Government companies
  3. CGASAB is set up under the Companies Act to prescribe Cost Accounting Standards
  4. DGASAB is an RBI body that regulates State Government borrowings

Explanation

GASAB was constituted by the CAG in consultation with the Government of India to formulate standards and guidelines for Government accounting and financial reporting. It is not part of ICAI, the Companies Act machinery, or RBI. Its standards are IGAS, distinct from Ind AS.

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