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Customise accounting norms to suit domestic needs: Jaitley

Our Bureau

NEW DELHI, Sept. 26

EVEN as Indian accounting bodies continue with their efforts to bring the Indian GAAP at par with the International Accounting Standards (IAS) by the end of the current fiscal, the Union Minister for Law, Justice and Company Affairs, Mr Arun Jaitley, tod ay held that some deviations may still be necessary between the two sets of standards to cater to the domestic requirements.

Releasing a comparative study on `Accounting standards: Indian GAAP, IAS and US GAAP', undertaken by the Institute of Chartered Accountants of India (ICAI), Mr Jaitley at the same time underscored the need to have accounting standards that will align the mselves with the best practices which are accepted the world over.

``The changing economic trend of the world requires balance sheets and accounts to be comparable and one that would reflect the common picture. Bringing Indian accounting standards on par with international standards is a step which will help the investo r community and the entire corporate world,'' Mr Jaitley said.

Mr N.D. Gupta, President, ICAI, sought to allay the misgivings in certain sections that there exists a significant gap between the standards issued by the International Accounting Standards Board (IASB) and those issued by the ICAI.

``A view was expressed in some quarters that the accounting standards in India lag far behind when compared with the position prevailing internationally. This has not been the factual position. The state of development of accounting standards mainly refl ected the stage of development, the economy and the capital markets,'' Mr Gupta said.

He held that the difference between Indian GAAP and US GAAP became more pronounced as Indian companies raising resources in US capital markets were required to follow the US GAAP under the law applicable there. Mr Gupta expressed confidence that Indian G AAP would be at par with IAS by the end of the current fiscal year.

Meanwhile, official sources said that further relaxation of buyback rules is under the ``active consideration'' of the Department of Company Affairs (DCA). ``Talks are on between the concerned authorities on this matter. No final decision has been taken and changes may require the nod of the Cabinet,'' they said.

Pic.: The Union Law Minister, Mr Arun Jaitley, releasing a comparative study of accounting standards: US GAAP & IAS in the Capital. Also seen are Mr N.D. Gupta (Right), President Institute of Chartered Accountants of India (ICAI), and Mr Ashok Chandok, V ice-President, ICAI, on Tuesday.

Picture by Kamal Narang