Significant Achievements of Financial Reporting Review Board for the Year 2011-12
Review of General Purpose financial statements and Auditors’ Report thereon
During the Council Year 2011-12, the Board has decided:
To undertake review of general purpose financial statements selected during the Council Year 2011-12
For the financial year 2009-10
Selected Suo motu – 108
Selected as Special cases – 10 IPL Franchiseesenterprises
To complete the review of enterprises, which were selected during the Council Year 2010-11
Financial year 2008-09: Pending 77 Cases
Disposal Status of enterprises selected for Review
In order to accomplish the objective of completing the review of 195 enterprises, the review of 183 enterprises has been completed by the Technical Reviewers that have been allotted to Financial Reporting Review Groups (FRRGs) for further review. So far, the FRRGs have submitted the review report on 119 enterprises, out of which the Board has completed the review of other 27 enterprises.
Other Achievements
Review of General Purpose Financial Statements of the IPL franchisees
During the year 2010-11, as a proactive measure, the Board had undertaken the review of general purpose financial statements of eight IPL franchisee enterprises, as special cases for review. On preliminary review of the financial statements of various IPL franchisees, the Board was of the view that there are certain material issues with regard to which the financial statements contain either no information or limited information. The Board sought the additional information relating to the same from the concerned IPL franchisees.
In the light of the additional information so received, the Board again reviewed the general purpose financial statements of various IPL franchisees. Considering the peculiar nature of business as well as the absence of any specific guidance in this regard, the Board was of the view that appropriate awareness about this issue could avoid this sort of instances and decided to issue appropriate letter to the auditor of the company in this regard.
Further, in order to keep pace with time, the Board has also undertaken review of the general purpose financial statements and auditor’s report of IPL franchisees for the financial year 2009-10. The preliminary review of the said financial statements has been completed and are being assigned to the concerned Financial Reporting Review Group for further review.
Initiatives
1. Roadmap to make the FRRB mechanism robust
The Board felt that in the last few years the FRRB has been able to niche a position among the regulators and members of the Institute. It endeavours to bring transparency in the financial reporting system and accordingly there is a need to consider the existing procedures of FRRB and revise them, if necessary, to make the mechanism of FRRB more robust and effective.
Accordingly, the Board has developed a concept paper that may guide its future actions, programs and operations more robustly with an objective to promote investors’ confidence in audited financial statements and to inform and educate various stakeholders about the best practices in the accounting/auditing profession.
2. Training Programmes/Workshops organized by the Board:
A. Training Programme for technical Reviewers
With an objective to guide the technical reviewers on further enhancing their review skills of the General Purpose Financial Statements and to acquaint them with major non-compliance observed by the Board during the review of general-purpose financial statements of various companies, the Board Conducted the following Quality Assurance Programmes for the Technical Reviewers:
- Training programme for technical reviewers at Ahmedabad on 21.01.2012. The programme was well attended by about 240 members.
- Training programme for technical reviewers at Hyderabad on 04.02.2012. The programme was well attended by about 138 members.
B. Workshops organized during the year
In addition to these training programmes, the Board organized a “Two days’ workshop on Best Practices in Financial Reporting” jointly with the auditing and assurance standards Board at Kolkata on 21st and 22nd December, 2012.
