• Register
Return to: Home > News > India’s Gov’t proposes financial reporting body

India’s Gov’t proposes financial reporting body

A clause in India's Company Bill, currently awaiting clearance from one of two houses of Parliament, proposes the formation of a National Financial Reporting Authority (NFRA) to provide for matters relating to accounting and auditing standards.

The NFRA is expected to be headed by a person with expertise in accountancy, auditing, finance or law and will be appointed by the Central government, along with 15 full time and part time members.

It will co-exist with the Institute of Chartered Accountants of India (ICAI), which currently governs financial regulation, with the division of work between the two to be spelt out once the bill is passed.

It has been speculated by ICAI members in Indian media reports that the NFRA will supersede the ICAI, with one member describing the move as a "land grab" by the government.

The NFRA will set accounting standards and be able to take disciplinary action against members, including against firms, whilst the ICAI, which currently sets accounting standards, can only take action against individuals.

Firms have also been nervous over the creation of the governmental body, with KPMG suggesting the new provisions would question the validity of the concept that a professional should be judged by his peers, whilst others have expressed concerns about regulation.

The move follows the 2008 Satyam Computer accounting fraud scandal, where auditors missed the company over stating cash balances by about $1bn and revenues by $1.1bn.

Related link
Institute of Chartered Accountants of India

Top Content

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more

    FASB: a quest for simpler standards

    FASB chair Russell Golden addressed the IMA 2019 Annual Conference and Expo at the Sheraton San Diego Hotel and Marina, California, on 18 June. IMA immediate former chair-emeritus Alex Eng acted as moderator. Joe Pickard reports.

    read more

    The future of audit, and how to get there

    Two recent reports peer into the future of the audit profession. One analyses what an audit should offer, while the other looks at how the audit process will be carried out. Robin Amlôt takes a closer look at both.

    read more

    EFAA elects new president, focuses on digital future

    EFAA’s new president, Salvador Marin, outlined his key priorities for the next two years at the organisation’s 2019 annual general meeting, while outgoing president Bodo Richardt offered advice. Robin Amlôt reports.

    read more


    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.