Govt Notifies Norms for Maintenance of Accounts by IBBI [Read Notification]

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The Central Government has recently framed Insolvency and Bankruptcy Board of India (Form of Annual Statement of Accounts) Rules, 2018 prescribing norms for maintenance of accounts by IBBI.

According to these rules, the Insolvency and Bankruptcy Board of India (IBBI) should maintain its accounts and records in the form of financial statements as prescribed in the annexure to the rules. The IBBI is also bound to follow general directions of the Central Government given in consultation with the Comptroller and Auditor General of India regarding the maintenance of the financial statements. The Board should prepare its annual statement of accounts and balance sheet showing the financial results and significant accounting policies in the 3 Forms & 23 Schedules, namely- Form A (Form of Financial Statement), Form B (Form of Income and Expenditure Account for The Period/Year Ended) & Form C (Receipt and Payment Accounts for The Period/Year Ended).

According to sub rule 2 of Rule 4, the annual statement of accounts and balance sheet of the Board, duly authenticated by the whole-time members in-charge of Finance Accounts Department of the Board, Chairperson of the Audit Committee of the Board and Chairperson and approved by the Board shall be forwarded to the Comptroller and Auditor General of India, for the purposes of audit, within three months of the end of the financial year.

The rule also provides that the duly audited annual statement of accounts and balance sheet of the Board as certified by the Comptroller and Auditor General of India together with the audit report thereon shall be forwarded by the Chairperson for every financial year to the Central Government for laying before each House of Parliament.

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