The new accounting standards to be followed by companies are likely to be notified shortly, a senior government official said today."The process of legal vetting of the recommendations of the National Advisory Committee on Accounting Standards (NACAS) is nearing completion and a notification is expected to be issued very soon," Jitesh Khosla, Joint Secretary at the Ministry of Company Affairs, said.Speaking at a seminar organised by FICCI and ICAI, he said small and medium enterprises (SMEs) would get certain exemptions under the new set of rules in terms of simplifying accounting and disclosures.The Accounting Standard Board, a constituent of ICAI, is already working on introducing different accounting standards for SMEs, ICAI president T N Manoharan said.Currently, the Companies Act stipulates that India Inc has to adopt accounting standards formulated by the ICAI. This would continue until the Centre notifies the accounting standards recommended by NACAS. For recommending accounting standards to the Centre, the NACAS had taken ICAI standards as the base and suggested certain modifications.NACAS was set up to advise the Centre on formulation and laying down of accounting policies and standards for adoption by companies or a class of companies under Companies Act.
