The Department of Company Affairs on Tuesday said it was in the process of notifying recommendations made by the National Accounting Advisory Committee, but was in a quandary over the multiplicity of accounting standards this would create.
"We are in the process of notifying the 23 recommendations of this committee. But we need to address the multiplicity of accounting standards. If we were to notify these under the Companies Act, there will be two sets of standards including the one by Institute of Chartered Accountant of India, and this will create problems both for the accountants and regulators," Rajiv Mehrishi, joint secretary, DCA, said.
He was addressing the National Accounting Convention organised by the Associated Chambers of Commerce and Industry in New Delhi.
Mehrishi also pointed out that while the department was trying to simplify the accounting standards, two other bodies had set up their own boards to look into the matter. He said the Securities and Exchange Board of India has set up its own accounting standards board and so have the tax authorities.
Emphasising the need for simple and easily comprehensible accounting standards, the DCA official said these norms are becoming more and more complex.
"The accounting standards should be presented to non-technical people including those who read balance sheets and accounts in a manner in which they comprehend," he said.
R Bhupathy, president, ICAI and Nihal Kothari, group vice-president, Hindustan Lever Ltd, also addressed the seminar.
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