Report on Implementation of Accounting Standards in Educational Institutions of Department of Higher Education, Ministry of Human Resource Development was presented to Shri Kapil Sibal, Hon’ble Minister for Human Resource Development, Government of India today i.e. 18th January, 2012 by CA. G Ramaswamy, President, ICAI and CA. Jaydeep N Shah, Vice- President, ICAI. The report has been brought out by a working group consisting of members from ICAI and those nominated by the Ministry of HRD for the purpose, namely CA. G. Ramaswamy, President, ICAI, CA. Jaydeep N. Shah, Vice-President, ICAI, CA. Amarjit Chopra, Chairman, Professional Development Committee, CA. Manoj Fadnis, Chairman, Accounting Standards Board, Mrs. Neelam Sudhir Kumar, Controller of Accounts, Ministry of HRD, Shri N. U. Siddiqui, Former Finance Officer, Jamia Millia University, Shri A.K. Dogra, Financial Adviser, University Grants Commission and Shri M. Arumugan, Dy. Commissioner (Finance), Kendriya Vidyalaya Sangathan, New Delhi.
Considering that presently, the accounting and financial reporting practices of educational institutions in India are oriented towards meeting the needs of the governing bodies running them and educational institutions follow not only diverse accounting practices but also different basis of accounting, the Group has recommended that all educational institutions should be mandated to apply accrual basis of accounting; Accounting Standards issued by the ICAI should be made mandatory to educational institutions; Fund based accounting may be introduced for Earmarked / Designated Funds; All educational institutions should follow a common format for presentation of its general purpose financial statements to ensure proper accountability, financial discipline, end-use of funds and to meet the needs of stakeholders. It is also recommended that the statutes having specific formats for financial reporting by educational institution may also modify the same in line with the suggested formats and Ministry of Human Resource Development in coordination with ICAI shall organise capacity building programme to train the staff of educational institutions.