(TOI)
The government is reviewing plans to put in place the National Financial Reporting Authority (NFRA) as it seeks to rein in the Institute of Chartered Accounts for India(ICAI) for its perceived failure in enforcing discipline. While Companies Act 2013 had provided for NFRA as a regulatory agency for audit, accounts and financial reporting, Section 132 of the law has remained on paper as the rules are yet to be notified. “It is one of the few sections of the law that has not been notified yet,” said a source.
Many believe that several chartered accountants had successfully lobbied with the government to block the notification as it would have taken away several powers that are currently vested with ICAI. Under the 1956 law, the Centre was to prescribe accounting standards prepared by ICAI in consultation with the National Advisory Committee on Accounting Standards (NACAS) -powers that are to be transferred to NFRA now. The new agency -which can have up to 15 members, including the chairman – is mandated to advise on issues related to audit and accounting standards and be the regulator for the profession.
