The Office of the Comptroller and Auditor General of India constituted Government Accounting Standards Board (GASAB) in August 2002 for establishing and improving governmental accounting standards for Union and the State Government accounts.

The mission of the Government Accounting Standards Advisory Board (GASAB) is to formulate and recommend Indian Government Accounting Standards (IGASs) for cash system of accounting and Indian Government Financial Reporting Standards (IGFRS) for accrual system of accounting, with a view to improving standards of Governmental accounting and financial reporting which will enhance the quality of decision-making and public accountability.

GASAB has the following responsibilities:

• To formulate and improve standard of Government accounting and financial reporting in order to enhance accounting mechanisms.
• To formulate and propose standards that improve the usefulness of financial reports based on the needs of the users.
• To keep the standards current and reflect changes in the Governmental environment.
• To provide guidance on implementation of standards.
• To consider significant areas of accounting and financial reporting that can be improved through the standard setting process.
• To improve the common understanding of the nature and purpose of information contained in financial reports.

Recent Activities of Government Accounting Standards Advisory Board

The Indian Government Accounting Standards (IGAS), formulated by the Government Accounting Standards Advisory Board (GASAB) and notified by the Ministry of Finance, Government of India.

• Guarantees given by Governments: Disclosure Requirements (IGAS 1)
• Accounting and Classification of Grants-in-aid (IGAS 2)
• Loans and Advances made by Governments (IGAS 3)

The Indian Government Accounting Standards (IGAS), approved by the Government Accounting Standards Advisory Board (GASAB) and under consideration of Government of India, are:

• IGAS 7, Foreign Currency Transactions and Loss/Gain by Exchange Rate Variations
• IGAS 9, Government Investments in Equity
• IGAS 10, Public Debt and Other Liabilities of Governments: Disclosure Requirement

Accrual based Accounting Standards, i.e., Indian Government Financial Reporting Standards (IGFRS), approved by the Government Accounting Standards Advisory Board (GASAB) under consideration of Government of India:

• IGFRS 1: Presentation of Financial Statements
• IGFRS 2: Property, Plant & Equipment
• IGFRS 3: Revenue from Government Exchange Transactions
• IGFRS 4: Inventories
• IGFRS 5: Contingent Liabilities (other than guarantees) and Contingent Assets: Disclosure Requirements

Formulation of some other IGFRSs/IGASs is under progress. More information about the GASAB may be obtained from the web-site www.gasab.gov.in