Significant Achievements Council Year 2022-2023
1. Partner in Nation Building- Supporting Regulators – Review of cases referred by Regulators
In its endeavour to support regulators as well as to bring transparency in financial reporting, during the year FRRB has undertaken, as special cases, review of 28 general purpose financial statement and auditor’s reports thereon of various enterprises as referred by regulators, based on media reports and other references received which are on different stages of review. The Board supports various regulators viz Election Commission of India (ECI) in the review of annual audited accounts of political parties and Ministry of Corporate Affairs (MCA), Office of the Comptroller & Auditor General of India (C&AG) and other regulators by undertaking the review of cases as referred by them from time to time.
2. Cases reviewed during this period
The Board has completed review of 101 financial statements among other agendas. Out of these 101 cases, 11 cases have been referred to relevant regulators and Director (Discipline) for further action and in 63 cases, Board decided to issue advisory to the auditor of the enterprise.
|Cases considered and finalised by the Board||Cases referred to Director (Discipline) of ICAI for further action where serious non-compliances observed||Cases referred to Regulators (MCA, SEBI)||Issued advisories to the auditors|
|101||11 (11%)||8 (8%)||63 (62%)|
- The cases completed during the period include review of 17 financial statements undertaken as special cases and 73 Ind-AS Financial Statements.
- FRRB is also in the process to complete the review of financial statements of 150 enterprises selected on suo motto basis or as special case. Out of these, the preliminary review of 127 enterprises (Tier I) has been completed by technical reviewers and review of 80 enterprises (Tier II) has been completed by Financial Reporting Review Groups.
The Board has released the Volume II of ‘Study on Compliance with Financial Reporting Requirement (IND AS Framework) in October 2022 with an objective to educate the preparers of financial statements, auditor and other members about the compliance with various financial reporting requirements thus paving the way for enhancing the quality of the financial statements as well as quality of services rendered by the members. It contains pertinent observations of the Board in context of Ind AS, Standards on Auditing and applicable Guidance Notes as well as other relevant Laws and Statutes. This publication would provide guidance to the members and other stakeholders, so as to enable them to implement these Standards (Ind AS) in the spirit in which these have been formulated.
In order to spread awareness among the members regarding the non-compliances observed by FRRB and to give regular updates on the same, a twitter account for FRRB has been created in August 2020 wherein ‘Did you know?’ series is going on. More than 200 tweets on the errors observed on the compliance related to Accounting Standards (Ind AS and IGAAP) have been posted. A tremendous response has been received on FRRB’s twitter account with more than 2,800 followers.
A Training Programme for the officers of Serious Fraud Investigation Office (SFIO)
2. Cases reviewed during this period
A 4-half day training program was jointly organized with Ind AS Implementation Committee and Digital Accounting and Assurance Board for officers of SFIO engaged in Corporate Fraud Investigation Department starting from 21st February, 2022 to 24th February, 2022, covering most relevant topics of Ind AS, Non compliances found in Financial statements and Corporate Fraud.
21st World Congress of Accountants – ICAI Pavilion – FRRB
21st World Congress of Accountants was a momentous event for the global accountancy profession which, interalia, exhibited ICAI Pavilion showcasing roles of ICAI in six zones. These zones were namely ‘ICAI Regulating the CA Profession’, ‘ICAI – Partner in Nation Building’, ‘ICAI Standards Setter’, ‘ICAI for Fiscal Discipline’, ‘ICAI – Educator par Excellence’. The ICAI pavilion proved to be a good branding exercise for ICAI and provided an opportunity to various committees of ICAI to showcase their activities of global relevance.
FRRB-ICAI has also contributed in ICAI pavilion under the aegis of ‘’ICAI Regulating the CA profession’’. To encourage the delegates and make it interactive, quiz has been conducted through flashcard mode, wherein questions related to common non-compliances observed in context of IGAAP, Ind AS, CARO, Standards on Auditing, Companies Act were asked. The FRRB’s publication ‘’Study on Compliances with Financial Reporting Requirements (Ind AS Framework) – Volume II has been given to delegates to enable improvement in the financial reporting practices and as a token of remembrance of this mega event.
Initiatives for the Members
2 Day Training Programme for Technical Reviewers and FRRG Members as AKAM activity at Hyderabad and Mumbai
To update the Technical Reviewers (TRs) and members of Financial Reporting review Group (FRRGs) on Ind ASs and equip them with the necessary skills required to review the Ind AS based financial statements ‘2 Day Residential Workshop for Technical Reviewers and FRRG Members’ were organized by FRRB on May 12-13, 2022 at Mumbai and August 25-26, 2022 at Hyderabad. In Mumbai programme, CA. Durgesh Kumar Kabra, Chairman, FRRB, CA Abhay Chhajed, Vice Chairman, FRRB, Adv Vijay Kumar Jhalani, Government Nominee and member, FRRB graced the event with their benign presence and shared their words of wisdom with the participants. CA. Chandrashekhar Vasant Chitale, CCM & Member, FRRB, CA. Priti Paras Savla, CCM were also present along with Chairman, WIRC and Secretary, WIRC. The programme at Hyderabad was addressed by CA. Durgesh Kabra, Chairman, FRRB, Adv. Vijay Kumar Jhalani, Government Nominee and Member, FRRB, Mr. Sanjay Purao, Special invitee on Board from SEBI and CA. Dayaniwas Sharma, CCM and Member, FRRB. The reviewers from the Western Region were invited to attend the programme at Mumbai and the reviewers based in Southern and Eastern region were invited to attend the programme at Hyderabad. The main objective of organizing such workshop is to further strengthen the review mechanism and to acquaint TRs and FRRGs with major non-compliances observed by the Board. The programme was well appreciated by the participants.
In order to spread awareness among the members regarding the non-compliances observed by FRRB and to give regular updates on the same, a twitter account for FRRB has been created in August 2020 wherein ‘Did you know?’ series is going on with 3,600 followers as on date. Till date, 305 tweets on the errors observed on the compliance related to Accounting Standards (Ind AS and IGAAP) have been posted.
Awareness Programme on ‘Commonly Found Non-compliances of Financial Reporting Requirements’ observed in Financial Statements
To spread the awareness amongst the members about the pertinent issues in the areas of reporting as well as to apprise them about the common non-compliances observed by the Board during review of various financial statements Awareness programmes on “Financial Reporting Practices” were organised at Goa, New Delhi, Sonipat, Jabalpur, Surat, Ratlam, Bhopal, Chengalpattu, Sivakasi and Thiruvananthapuram. These programmes were well attended by the participants.