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CA Final · Financial Reporting · Introduction to Indian Accounting Standards

Under the Ind AS framework in India, which authority notifies Indian Accounting Standards for companies, and on whose recommendation?

The Central Government, through the Ministry of Corporate Affairs, notifies Ind AS for companies on the recommendation of NFRA. ICAI formulates the draft standards, but they gain legal force only when notified by the government.

  1. ASEBI, on the recommendation of the stock exchanges
  2. BThe Central Government, on the recommendation of the National Financial Reporting Authority (NFRA)Correct
  3. CThe ICAI Council, on the recommendation of the Accounting Standards Board alone, without government notification
  4. DThe Reserve Bank of India, on the recommendation of the Ministry of Finance

Explanation

Under the Companies Act, the Central Government prescribes standards of accounting in consultation with and on recommendation of NFRA. ICAI's ASB formulates the standards and offers recommendations, but notification rests with the Ministry of Corporate Affairs. SEBI does not notify Ind AS.

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