Central Government to prescribe accounting standards
📚 Law Minded summary
The Central Government prescribes the accounting standards, on the recommendation of the Institute of Chartered Accountants of India and in consultation with the National Financial Reporting Authority.
It is the section that gives the standards their legal force — without it they would be professional guidance rather than law.
The Central Government may prescribe the standards of accounting or any addendum thereto, as recommended by the Institute of Chartered Accountants of India, constituted under section 3 of the Chartered Accountants Act, 1949 ( of 1949), in consultation with and after examination of the recommendations made by the National Financial Reporting Authority: 1[Provided that until the National Financial Reporting Authority is constituted under section 132 of the Companies Act, 2013 (18 of 2013), the Central Government may prescribe the standards of accounting or any addendum thereto, as recommended by the Institute of Chartered Accountants of India, constituted under section 3 of the Chartered Accounta nts Act, 1949 (38 of 1949), in consultation with and after examination of the recommendations made by National Advisory Committee on Accounting Standards constituted under section 210A of the Companies Act, 1956 (1 of 1956).]