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CS Professional · Drafting, Pleadings and Appearances · Documents under Companies Act, 2013

Who prescribes the standards of accounting for companies under section 133 of the Companies Act, 2013, and on whose recommendation?

The Central Government prescribes accounting standards under section 133. It acts on the ICAI's recommendations, in consultation with and after examining the recommendations of the National Financial Reporting Authority. The Registrar, NCLT, SEBI or the ICAI alone cannot prescribe them under this section.

  1. AThe Central Government, on the recommendations of the Institute of Chartered Accountants of India, in consultation with and after examination of the recommendations of the National Financial Reporting AuthorityCorrect
  2. BThe Registrar of Companies, on the recommendation of the Institute of Company Secretaries of India
  3. CThe National Company Law Tribunal, on the recommendation of the Securities and Exchange Board of India
  4. DThe Institute of Chartered Accountants of India directly, without any Central Government notification

Explanation

Section 133 empowers the Central Government to prescribe accounting standards as recommended by the ICAI, in consultation with and after examination of the National Financial Reporting Authority's recommendations. The other bodies have no such role under this section.

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