8216;Biz objective,acct hazard for India Inc8217;

Accounting standards should ensure accountability among the stakeholders,National Advisory Committee on Accounting Standards NACAS Chairman M M Chitale said here.

NACAS is the apex body,constituted by the government,to look into various aspects of accounting policies to be followed by companies.

Chitale noted that at times,the objectives of business does not match the accounting principles.

8220;When business objective supersedes accounting principles resulting into sometimes inaccurate,sometimes inappropriate accounting disclosures also then there are troubles for the long run,8221; he said.

Speaking at a function organised by the Confederation of Indian Industry CII,Chitale said that strict vigil should be exercised to check those entities who adopt incorrect accounting approach.

Stressing that the trend of having 8220;off balance sheet8221; items should be done away with,Chitale noted that having such items could lead to criticism about credibility of the financial statements.

8220;How can there be something called off balance sheet when they are relevant to the balance sheet. We have to find some way out to ensure that there is nothing called off balance sheet.

8220;8230;If there are more number of off balance sheet items,that means the credibility of the financial statements is subject to criticism and trouble,8221; he said.

India is working towards converging accounting norms with the International Financial Reporting Standards.