Evaluation of Indian Accounting Standard

For harmonization and standardization of accounting policies at international level, the International Accounting Standard Committee (IASC) was established in 1973. The Institute of Chartered Accountants of India (ICAI), fully recognising the need of harmonizing the diverse accounting policies and practices established “Accounting Standards Board” on 21^st April, 1977. The aim of setting standards is to bring about uniformity in financial reporting and to ensure consistency and comparability in the data published by enterprises. The constitution of ASB gives adequate representation to all interested parties and, at present, it consist of members of the council and representatives of Industry, banks, Company Law Board, Central Board of Direct Taxes and the Comptroller and Auditor General of India, Security Exchange Board of India etc.

India is slowly entering the arena of accounting standards. The progress of formulation of accounting standards has been very slow compared with the developments at international levels. Under this global business scenario, the residents of the business community are in badly needed of a common accounting language that should be spoken by all of them across the globe. Further more, the harmonization of accounting rules and principles among countries should also be accompanied by inter country harmonization in auditing principles and standards.