Significant Achievements of Financial Reporting Review Board for the Year 2012-13

1. Review of General Purpose Financial Statements and auditors’ reports thereon of selected Enterprises

During the Council Year 2012-13, the Board selected 157 enterprises either on suo motto basis or as a Special Case for review. The Annual Reports from 144 enterprises have been received and the preliminary review of 136 enterprises has been completed which has been assigned to groups for further review. The reports of 91 enterprises have been received from the Financial Reporting Review Groups (FRRGs) for consideration.

Apart from above, the Board has also undertaken to complete the review of 164 enterprises, which were selected by it during the previous Council Years. The Annual Reports from 156 enterprises have been received and the preliminary review of these 154 enterprises has been completed which has been assigned to groups for further review. The reports of 128 enterprises have been received from the Financial Reporting Review Groups (FRRGs) out of which the Board has completed the review of 37 enterprises.

2. Role assigned to ICAI-FRRB by SEBI:

In its endeavor to improve the quality of financial reporting by listed entities SEBI has sought support from ICAI-FRRB. The Securities and Exchange Board of India (SEBI), has decided to set up a new Qualified Audit Report Review Committee (QARC). The QARC among other members will comprise the Representatives of the ICAI and the stock exchanges. Its role will be to guide SEBI in processing the qualified annual audit reports referred to by the stock exchanges. FRRB has been assigned the role to assess the materiality of the qualification contained in auditor’s report, based on which QARC may direct the entity to restate its books of accounts. In order to smoothly accomplish the new role assigned to ICAI-FRRB, an Issue paper and a draft of background paper has been prepared containing the detailed procedures that may be adopted by it as well as the challenges that may arise while implementing this process. The Board endeavor to take appropriate action in the interest of all stakeholders.

3. Articles in Institute’s Journal “The Chartered Accountant”:

With a view to apprise the members of the Institute and others concerned about the non-compliances observed during the review, note on ‘Non-Compliance with Reporting Obligations’ as observed by the Financial Reporting Review Board relating to AS 11, The Effects of changes in Foreign Exchange Rates, AS 15, Employee Benefits and AS 18, Related Party Disclosures have been published in the November 2012, December 2012 and January 2013 issues respectively of the Institute’s Journal.

4. Conduct of Workshops/ Training Programmes

During the current Council Year, the Board has organised a series of Workshops, Seminars and Training Programmes across various branches and regional offices of ICAI to train the participants on accounting and auditing issues and to guide them on enhancing their review skills of the General Purpose Financial Statements. Accordingly, during the period, the Board has conducted 21 Workshops and Training Programs, details of which are as follows:

  • 14 Workshops were organised that were attended by approximately 1200 Members.
  • 7 Training Programs were organised which were attended by approximately 600 Members.
5. Empanelment of Technical Reviewers

During the Council Year 2012-13, 66 additional members of the Institute have been empanelled on the Board, thereby, empanelling a total number of 360 Technical Reviewers on the Board.