The Financial Reporting Review Board (FRRB) of the Institute of Chartered Accountants of India (ICAI), which has been looking into the accounting practices of edtech firm Byju’s, is likely to finalise its report soon, said ICAI’s new President Ranjeet Kumar Agarwal.
“FRRB is working on it. It is under process,” he told reporters at a press briefing on Wednesday.
The FRRB is a committee of the ICAI that works to improve financial reporting practices. It had undertaken a review of edtech major Byju’s financial statements for financial years 2019-20 and 2020-21.
The ICAI, which is the apex body of chartered accountants, is also working to address issues around chartered accountants being framed in cases where they are not involved. It is working with the Ministry of Corporate Affairs on the issue to come out with a standard operating procedure for investigating agencies on how to treat chartered accountants in such cases.
“ICAI has given its inputs to the ministry. Other bodies are also giving their inputs and some guidelines will be framed,” Agarwal explained.
Meanwhile, elaborating on the priorities for ICAI during his term, Agarwal said the ICAI will undertake research and provide suggestions to the government on how to increase the tax to GDP ratio as well as on the issue of green finance.
In developed countries, the tax to GDP ratio is as high as 22% while in India it is much lower. “ICAI will undertake a study as to whether the tax assesses, filing of returns and tax payment is happening commensurate to GDP growth. We will present the paper to government giving a roadmap on how tax to GDP ratio can be increased,” Agarwal, who took over as the ICAI President on February 12, said.
As part of its research activities, it will also set up a committee to identify all the legislations that have become redundant or irrelevant as submit the list to the government.
Agarwal also announced that as part of the free trade pact negotiations with the UK and Canada, a proposal is being discussed to allow chartered accountants from India to work in these countries on a reciprocal basis. a similar arrangement is being looked with Australia. Once the reciprocal system is implemented, chartered accountants from these countries will have to be registered with the ICAI, which will be regulating them, and they can then practice in India as well.