Companies Act Section 133 — Central Government to prescribe accounting standards

CHAPTER IX ACCOUNTS OF COMPANIES

Commercial / Corporate

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).]