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Banking and insurance accounting standards coming soon: MCA secretary | Financial News

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Govil said discussions are underway with the Reserve Bank of India on accounting standards for the banking sector and they may see the light of the day soon.

Manoj Govil, Secretary, MCA
Manoj Govil, Secretary MCA

Raghav Aggarwal New Delhi

The Centre is working on developing accounting standards for the banking and insurance sectors, Corporate Affairs Secretary Manoj Govil said on Monday.

At an event organised by the Institute of Chartered Accountants of India (ICAI) on the occasion of its 75th foundation day in New Delhi, Govil said that along with the body, the Centre is also working towards affiliating accounting and auditing firms in the country to ensure they are in line with global players.

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“We are also working on introducing new accounting standards,” he said.

“We have asked large companies to comply with IFRS standards… but we have not yet done so in the insurance sector. We have completed our research and will develop standards for the insurance sector,” he added.

Govil said that discussions are on with the Reserve Bank of India on accounting standards for the banking sector and they may see the light of day soon.

He also said the ministry was working to introduce accounting standards for limited liability partnerships (LLPs). “We have received recommendations from ICAI and NFRA on this matter and we are working on it,” he added.

Among other plans, Govil said the ministry would review company rules and continuing education regulations, in addition to working to reduce the time it takes for companies to close voluntarily.

Currently, the average duration of voluntary closure of companies is three months. He added that it was about two years earlier.

Regarding India’s “Big Four” firms, Govil said MCA and ICAI are working together to create an environment where “Indian accounting and auditing firms emerge as global leaders.”

ICAI President Ranjeet Kumar Agarwal said a plan for aggregation of CA firms would be prepared in the next few months.

“ICAI is also considering providing continuing professional education to maintain global standards,” Govil said. Last month, ICAI held talks with Govil on “aggregation of CA firms” and a roadmap to set up large Indian audit firms.