Accounting Standards recommended by ICAI and advise theGovernment of India to notify them under the Companies Act,1956. Further the accounting standards so notified are applicableonly to companies registered under the companies act, 1956. For all other entities the accounting standards issued the ICAI continueto apply.
ICAI formulates and issues technical standards to be followed byChartered Accountants and others. Non-Compliance of thesestandards by the members will lead to disciplinary action againstthem. The technical standards issued by ICAI includes, AccountingStandards, Audit and Assurance Standards, Standards on InternalAudit, Corporate Affairs Standard, Accounting Standards for LocalBodies, etc..
Audit and Assurance Standards
As of 2010 ICAI has issued 43 Engagement and Quality ControlStandards (formerly known as Auditing and Assurance Standards)covering various topics relating toauditingand other engagements.All Chartered Accountants in India are required to adhere to allthese standards. If a Chartered Accountant is found not to followthe said standards he is deemed guilty of professional misconduct.These standards are fully compatible with theInternationalStandards on Auditing(ISA) issued by theIAASBof theIFAC
except for two standards SA 600 and SA 299, where corresponding provisions do not exist in ISA.
Write short notes of IFRS?Ans - International Financial Reporting Standards (IFRS) are principles-based Standards, Interpretations and the Framework (1989) adopted by theInternational Accounting Standards Board (IASB).