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MR JITESH KHOSLA, Joint Secretary, Ministry of Company Affairs, with Mr T.N. Manoharan, President, ICAI, at a seminar on `Recent Accounting Standards' in the Capital on Saturday. - Kamal Narang

New Delhi , Dec. 2

The Government would soon specify the accounting standards that companies need to adopt for the preparation of their financial statements under the company law, a top official of the Ministry of Company Affairs has said.

"We will very soon notify the accounting standards that would be in force under the Companies Act. An advisory body had earlier this year made its recommendations on the 28 accounting standards of the ICAI. They are being put to legal vetting," Mr Jitesh Khosla, Joint Secretary in the Ministry of Company Affairs said at FICCI-ICAI seminar on `recent accounting standards' here today.

Mr Khosla also said that the Centre would specify its accounting standards in the form of rules.

ICAI standards

Currently, the accounting standards issued by the Institute of Chartered

Accountants of India (ICAI) have "deemed" legal recognition under the company law. This legislation states that companies would have to comply with the ICAI standards until the Centre prescribes its own accounting standards.

The Centre had constituted the National Advisory Committee on Accounting Standards to advise on the formulation and the laying down of accounting standards for adoption by companies or class of companies.

Meanwhile, the ICAI President, Mr T.N. Manoharan, highlighted that the difference between the Indian accounting standards and the International Financial Reporting Standards was minimal. Mr Vivek Bharati, Advisor, Federation of Indian Chambers of Commerce and Industry said that "appropriate breathing time" must be given to Indian enterprises for implementing advanced accounting standards.

"The accounting standards so formulated should be optional for initial 2-3 years and made mandatory only thereafter," he said.

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