|Non-Governmental Organisations (NGOs) play a very significant role in the process of social and economical development of an economy. With the passage of time, there has been a substantial increase in the activities of the Indian NGOs. Due to the manifold increase in the activities of the NGOs, there is a need for consensus on certain varied accounting as well as legal issues, so that more meaningful financial reporting can be made. However, presently in India there are different Acts for different organisations such as Trusts, Societies and Section 25 Companies that specify different accounting and reporting requirements which do not meet the information needs of various stakeholders.
|Keeping in view the above concern and need for a uniform accounting & reporting framework for NGOs, Ministry of Corporate Affairs, Government of India, approached ICAI with a request to suggest and recommend an appropriate accounting & reporting framework for the good governance of this important sector of the economy. In this respect a Study Group was constituted by the President, ICAI, which recently has finalised the exposure draft of the report on the subject covering the uniform accounting framework for NGOs, applicability of Accounting Standards issued by ICAI to NGOs, uniform formats of financial statements and fund based accounting for financial control of the NGOs.
Comments are invited on the Exposure draft of the report which can be downloaded from the following link “DRAFT REPORT ON UNIFORM ACCOUNTING & REPORTING FRAMEWORK FOR NGOs”. Comments may be sent by e-mail at firstname.lastname@example.org or email@example.com, so as to be received not later than February 12, 2011. Alternatively, comments may be submitted in writing to Dr. Avinash Chander, Technical Director, The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi – 110 002.
|“DRAFT REPORT ON UNIFORM ACCOUNTING & REPORTING FRAMEWORK FOR NGOs”|