ICAI comes down on SEBI

Khanna said that this was not possible as Indian markets were not as perfect as US as it lacked in depth and breadth. The ICAI member said that the institute would soon issue AS with regards to EPS and consolidation of accounts. The institute had also issued a guidance note relating to index futures derivatives.

Referring to auditors’ qualifications in annual reports of companies, Khanna said that the regional committees of ICAI had been instructed to inspect the financial statements and if any deviation from accounting standard norms laid down by the institute would attract the attention of the Registrar of Companies.

Earlier, addressing the plenary session on International Accounting Standards organised by Indian Accounting Research Association Foundation here today, he said that Indian Accounting Standards were formulated based on prudence rather than practical relevance.

He said that ICAI did not believe in forcing companies to make disclosures which failed to reflect true and fair view. The institute was only interested in disclosures which have a bearing on the financial results of companies.

Khanna said that Indian AS were more aligned withInternational Accounting Standards rather than US GAAP. The two-day seminar was also addressed by world renowned accountants like Sidney Gray of University of New South Wales.