The Institute of Chartered Accountants of India (ICAI) has decided to amend three accounting standards including the standards for effects in change in foreign exchange rates and tightening the standards for related party transactions while issuing new guidance notes on accounting for securitisation and oil and gas producing entities.
ICAI president R. Bupathy said that the changes were approved by the central council of the institute earlier this month.
He said that the council also decided to amend accounting standard (AS) 13 which would mean that the standard will not be applicable to venture capital companies.
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The limited revision of AS 18 on related party transactions, would mean that large and unrelated transactions with related parties would have to be shown separately instead of the present system of grouping all related party transactions under one head.
Bupathy said that he proposes to extend the memorandum of understandings signed with various countries into mutual recognition agreements during his tenure. He said that the countries with which MRAs are proposed to be signed include Australia, China, Turkey, Canada, Russia, Egypt and Israel.
Once the MRAs are in place the qualifications of ICAI members would be recognised in other countries and will help Indian chartered accountants in getting business outside India.
The ICAI president said that the institute also proposes to move to a system of e-learning, e-education and e-regulation during the next financial year. He said steps have already been initiated for setting up the necessary infrastructure.
The first part of the exercise related to e-regulation is expected to be ready by April and would enable ICAI members to submit forms and renew their membership online. The second phase, covering students is expected to be in place by September this year.