The current accounting landscape
for the banks in India is shaped
largely by the Accounting Standards (AS) issued by
the Institute of Chartered Accountants of India
(ICAI), notified by the National Advisory Committee on Accounting
Standards (NACAS), and the guidelines issued by the
Reserve Bank of India (RBI) from time to time. While
the RBI has issued guidelines in such important areas
as accounting and valuation of investments, impairment in loans and
advances, among others, the accounting standards,
interpretations, guidance notes, and expert advisory
opinions from ICAI govern the accounting in all other areas of banks' financial
statements. Together these constitute the main bedrock of `Indian GAAP' for
the Indian banks.
The IFRSs are a set of global accounting standards, which have come to
be widely accepted across the countries as a single body of high quality
standards, and hence, the IFRS are currently becoming an important tool to
achieve uniformity in accounting practices across the globe which increases
the transparency and comparability of financial statements across different
entities and geographies. The IFRS are issued by the International
Accounting Standards Board (IASB), which was established in 2001 as part of the
International Accounting Standards Committee (IASC) Foundation.
IASB is the standard-setting body of the IASC Foundation. The IASB
is selected, overseen and funded by the IASC Foundation, and it has
complete responsibility for all IASB technical matters, including the preparation
and issuing of IFRS. IFRS are mandatory pronouncements.
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