Adrian Johnson
TLDR:
Manoj Govil, the MCA secretary, announced that the Centre is working on developing accounting standards for the banking and insurance sectors. Discussions are ongoing with the Reserve Bank of India, and new standards may be released soon. Along with this, efforts are being made to aggregate accounting and auditing firms in India to make them global players.
Article:
The Centre is working on coming up with accounting standards for the banking and insurance sectors, Corporate Affairs Secretary Manoj Govil said on Monday. At an event organized by the Institute of Chartered Accountants of India (ICAI) on its 75th foundation day in New Delhi, Govil mentioned that discussions are ongoing with the Reserve Bank of India regarding accounting standards for the banking industry, and they may be released soon.
Govil also highlighted the need to develop new standards for the insurance sector, as well as for Limited Liability Partnerships (LLPs). In addition, the ministry plans to review rules under the companies and LLP laws to reduce the time taken for the voluntary closure of companies.
Efforts are also being made to aggregate accounting and auditing firms in India to make them global players. Govil emphasized the importance of Indian accounting and auditing firms emerging as global leaders and mentioned that ICAI is working on providing continuous professional education to maintain global standards.
Last month, discussions were held on the “Aggregation of CA Firms” and the roadmap to create big Indian auditing firms. Plans for the aggregation of CA firms are expected to be prepared in the next few months to further strengthen the accounting and auditing industry in India.
This move towards developing accounting standards for the banking and insurance sectors, as well as efforts to enhance the capabilities of accounting and auditing firms, signal a positive step towards aligning with global standards and improving the overall financial ecosystem in India.
