Companies Act Section 133 — Central Government to prescribe accounting standards

Summary

The Central Government may set the accounting standards, or any additions to them, based on what the Institute of Chartered Accountants of India recommends. This is done after consulting with, and examining the recommendations of, the National Financial Reporting Authority.

The proviso states that until the National Financial Reporting Authority is set up under section 132 of the Companies Act, 2013, the Central Government may instead prescribe the accounting standards, or any additions to them, as recommended by the Institute of Chartered Accountants of India, but this time in consultation with, and after examining the recommendations of, the National Advisory Committee on Accounting Standards, which was constituted under section 210A of the Companies Act, 1956.

Official Text

The Central Government may prescribe the standards of accounting or any addendum thereto, as recommended by the Institute of Chartered Accountants of India, constituted under section 3 of the Chartered Accountants Act, 1949 (38 of 1949), in consultation with and after examination of the recommendations made by the National Financial Reporting Authority: 1[Provided that until the National Financial Reporting Authority is constituted under section 132 of the Companies Act, 2013 (18 of 2013), the Central Government may prescribe the standards of accounting or any addendum thereto, as recommended by the Institute of Chartered Accountants of India, constituted under section 3 of the Chartered Accountants Act, 1949 (38 of 1949), in consultation with and after examination of the recommendations made by National Advisory Committee on Accounting Standards constituted under section 210A of the Companies Act, 1956 (1 of 1956).]

Sections referred to

• Companies Act §132 — Constitution of National Financial Reporting Authority

Referred to by

• Companies Act §2 — Definitions
• Companies Act §52 — Application of premiums received on issue of shares
• Companies Act §55 — Issue and redemption of preference shares
• Companies Act §66 — Reduction of share capital
• Companies Act §230 — Power to compromise or make arrangements with creditors and members
• Companies Act §232 — Merger and amalgamation of companies

Related Judgments

• PANNALAL BHANSALI vs BHARTI TELECOM LIMITED & ORS — Supreme Court of India (2026)
• BHARAT SANCHAR NIGAM LTD. vs PAWAN KUMAR GUPTA — Supreme Court of India (2015)
• ASSET RECONSTRUCTION COMPANY (INDIA) LIMITED vs BISHAL JAISWAL & ANR — Supreme Court of India (2021)
• The Hon’ble Justice Ajay Kumar Gupta; C.R.R. 1881 of 2020; Vishal Shar vs The State of West Bengal & Anr., With, CRR 1883 of 2020, Vishal Sharma — Calcutta High Court (Kolkata Principal Seat) (2026)