ICAI proposes Twelve New Accounting Standards for Local Bodies

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The Institute of Chartered Accountants of India ( ICAI ) has proposed twelve new Accounting Standards for Local Bodies.

The Institute has been formulating accrual-based Accounting Standard for Local Bodies (ASLBs) since March 2005 to improve financial reporting of Government at the third-tier of Government, i.e., Local Bodies that are moving towards accrual accounting.

Moving forward in this direction, the Council has recently approved 12 new ASLBs in addition to 15 already issued ASLBs to complete the set of ASLBs, which can be considered by the Government for the notification and time-bound implementation.

The ICAI President said, “This is indeed a big step towards improving the financial management system in the local bodies. ASLBs are based on the internationally accepted Accounting Standards for Government, i.e., International Public Sector Accounting Standards (IPSASs) and take into account India’s unique governance and demographic features”.

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