About Ac Std Board

ABOUT THE ACCOUNTING STANDARDS BOARD The Accounting Standards Board (ASB) was constituted by the Institute in April, 1977 with a view to harmonise the diverse accounting policies and practices in India. The main function of the ASB is to formulate Accounting Standards. While formulating the Accounting Standards, ASB gives due consideration to the International Accounting Standards issued by the International Accounting Standards Committee and tries to integrate them, to the extent possible, in the light of applicable laws, customs, usages and business environment prevailing in India. ASB also issues Guidance Notes on the Accounting Standards and gives clarifications on issues arising therefrom. Procedure for Issuing Accounting Standards Broadly, the procedure for formulating and issuing accounting standards is as follows:i. ii. iii. iv. v. vi.

ASB determines broad areas in which Accounting Standards need to be formulated. In the preparation of Accounting Standards, ASB is asisted by Study Groups, constituted by the members of the Institute, for considering specific subjects. ASB also holds a dialogue with the representatives of the Government, Public Sector Undertakings, Industry and other organisations for ascertaining their views. On the basis of the work of the Study Group and the dialogues with the organisations referred above, an exposure draft of the proposed Standard is prepared and issued for comments of the members and public at large. ASB finalises the draft of the proposed Standard, on the basis of comments so received and submits the same to the Council of the Institute. The Council considers the final draft of the proposed Standard and, if necessary, modifies the same in consultation with the ASB. Thereafter, the Accounting Standard is issued under the authority of the Council.