Significant Achievement and Initiatives of the Financial Reporting Review Board for the Year 2017-18

Significant Achievements Council Year 2017-18

Financial Reporting Review Board (FRRB) of ICAI is playing a paramount role in improving the financial reporting practices prevailing in India.

Cases reviewed during the year

The Board is functioning quiet effectively and independently to the entire satisfaction of the stakeholders’ especially regulatory bodies.

During the year, the Board has completed review of 81 enterprises. The cases completed during the year include the following:

      • 21 financial statements of various political parties referred by Election Commission of India
      • 10 financial statements undertaken based on media reports

FRRB is also in the process to complete the review of financial statements of 111 enterprises selected on suo motto basis or as special case. Out of these, the preliminary review of 106 enterprises (Tier I) has been completed by technical reviewers and review of 80 enterprises (Tier II) has been completed by Financial Reporting Review Groups. In order to expedite the review process of the next Council year, the financial statements of 45 enterprises have been selected on suo motto basis, pertaining to financial year 2016-17.

Contribution to Society - Commitment to Nation

Various assignments are being referred to FRRB by regulators. The significant assignments that were performed by the Board towards partner in nation building are as follows:

Election Commission of India has appreciated the role played by FRRB in previous years for reviewing annual audited accounts of various political parties and also holding a workshop for auditors of political parties. It has again requested FRRB to undertake review of the annual audited accounts of at least six National political parties and recognized parties with income/ expenditure exceeding Rs. 10 Crore. Accordingly, the Board has undertaken the review of 21 annual audited accounts of political parties and considered all these cases during this period. Based on non-compliances observed in these financial statements, the advisories have been issued to the auditor of concerned parties to take care in future. Further, FRRB is again proposing to organize a joint program with ECI for the political parties and their auditor to improve the quality of financial statements of political parties. So far, ICAI-FRRB has undertaken review of 68 annual audited accounts of various political parties referred by ECI time to time.

FRRB also reviews the cases on reference received from other regulators as MCA, SEBI, C&AG. The Board’s services are acclaimed by SEBI as is evident from the fact that Chairman, FRRB has been nominated as member of SEBI-QARC.

National Conference
Two Days National Conference has been organised at Trivandrum Branch of ICAI, to enhance the knowledge of members on review skill as well as to update them with the changes made in financial reporting framework, and was well attended by 170 members.

Residential workshop for TRs and FRRGs
2 Day Residential workshop has been organized at Centre of Excellence, Hyderabad on November 21-22, 2017, to guide the Technical Reviewers (TRs) empanelled with the Board and members of Financial Reporting Review Groups (FRRGs) enhance their review skills of Financial Statements and to have direct interaction with Board to improve the quality of review.

3rd Volume of Publication 'A Study on Compliance of Financial Reporting Requirements’

The 3rd volume of publication ‘A Study on Compliance of Financial Reporting Requirements’ has been released on Annual Day to enhance the knowledge of preparers and auditors of the financial statements. It contains pertinent observations of the Board in context of the applicable Accounting / Auditing Standards and Guidance Notes as well as other relevant Laws and Statutes.

Highlights at a Glance
Volume of publication Releasing Year No. of cases covered therein No. of observations covered therein
Volume III
Volume II
Volume I