National Financial Reporting Authority to be established

The Standing Committee on Finance in its 21st  Report had recommended the establishment of NFRA. Section 132 of The Companies Act, 2013 deals with Constitution of National Financial Reporting Authority. Its major functions are to –

  • make recommendations to the Central Government on the formulation and laying down of accounting and auditing policies and standards for adoption by companies or class of companies or their auditors, as the case may be;
  • monitor and enforce the compliance with accounting standards and auditing standards in such manner as may be prescribed;
  • oversee the quality of service of the professions associated with ensuring compliance with such standards, and suggest measures required for improvement in the quality of service and such other related matters as may be prescribed etc.

On 1 March,2018, Cabinet approved the proposal for the establishment of National Financial Reporting Authority (NFRA) and creation of one post of Chairperson, three posts of full-time Members and one post of Secretary for NFRA.

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Saumya Snehal

Saumya Snehal is a 3rd year BBA LLB student at Chanakya National Law University. Always a bibliophile, she loves to read, research and write on anything and everything legal. She has a insatiable appetite for knowledge and explores the same through indulging in various internships so that to constantly grow and become a better version of herself. She especially has an interest in corporate law and social legislations.

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