India sets out to close a critical Accounting Standard gap to align itself with global peers
The National Financial Reporting Authority (NFRA), in collaboration with the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), has been urging the Institute of Chartered Accountants of India (ICAI) to update a crucial accounting standard to align with revamped international norms, addressing a gap that has existed for over two decades. This move follows the NFRA's observation of discrepancies in various cases, including those involving Reliance Capital, IL&FS, DHFL, and Café Coffee Day. The NFRA, responsible for overseeing auditors and audit firms of large and listed companies, initiated discussions in May to update these standards, aiming to close the regulatory gap.
National Financial Reporting Authority (NFRA) on Monday decided to move towards the International Standard of Audit 600 (ISA 600) for all listed companies, barring public sector companies and state-run banks and their branches.
