The CSR Committee of the Institute of Chartered Accountants of India ( ICAI ) has released the Technical Guide on Accounting for Expenditure on Corporate Social Responsibility Activities on 1st July 2020, which has also been hosted on the website of the Institute.
Section 135 of the Companies Act, 2013 has made it mandatory for companies fulfilling certain criteria, to implement and report CSR policies. Rules framed thereunder and Notifications issued from time to time have provided extensive guidelines on the activities to be undertaken by the companies and the reporting of the same in the Annual Report of the Company.
The ICAI said that, With the increasing importance of the CSR activities, it has been felt necessary to provide guidance to the industry and professionals on the accounting aspects of the CSR Expenditures. This Technical Guide is an effort made by the CSR Committee of ICAI towards meeting the expectations of the professionals and the stakeholders in this respect.
Subsequent to the issue of the Technical Guide on Accounting for Expenditure on Corporate Social Responsibility Activities, the Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities, issued on 15th May 2015, stands withdrawn.Subscribe Taxscan AdFree to view the Judgment