Financial reporting in india:

Legal and regulatory environment

The financial reporting requirement for companies in india are stipulated in the companies act
of 1956(revised in 2013

Accounting framework :

1.two sets of accounting standards are applied.they are indian accounting standard(IND AS)
and local accounting standard.

2.Ind AS are applied by all listed companies in india,commercial banks and non bank finance
companies.other unlisted companies apply ind As but use local accounting standard.

3.Accountings standard board operating under ICAI is responsible for accounting standards.

Auditing framework :

1.All companies are required to be audited in accordance with Indian Standards on Auditing (SA)
issued by the Auditing and Assurance Standards Board (AASB) of ICAI.

2. NFRA is responsible for monitoring and enforcing compliance with auditing standards and
taking disciplinary action.

Regulation of Accountancy Profession

Until 2013, both the Institute of Chartered Accountants of India (ICAI) and the Institute of Cost
Accountants of India (ICAI-CMA) were responsible for regulating Chartered Accountants (CA)
and Cost and Management Accountants, respectively.

Chartered Accountants (CAs)

The Chartered Accountants Act of 1949 (revised in 2013) established the ICAI with regulatory
authority over Chartered Accountants and powers to establish regulations as necessary to fulfill
its duties. The Act permits ICAI to:

*establish initial professional development and continuing professional development

*maintain a register of its members

*ensure members’ adherence to laws and professional standards

* investigate and discipline members for professional misconduct

Cost Accountants (ICAI-CMA)

Accountants of India (ICAI-CMA) with respect to Cost and Management Accountants. ICAI-CMA
is responsible for

I.maintaining and publishing a register of persons qualified to practice as Cost and

II. issuing certificates of practice

III. prescribing IPD and CPD requirements for its members.

Adoption of International Standards:

Quality assurance:

Audit firms are required to comply with Standard on Quality Control (SQC) 1 issued by the
Institute of Chartered Accountants of India (ICAI). (Adopted)

International Education Standards:Standards

Both the Institute of Chartered Accountants of India (ICAI) and the Institute of Cost Accountants
of India (ICAI-CMA) are responsible for establishing initial professional development (IPD) and
continuing professional development (CPD) requirements for professional accountants in India.
ICAI is responsible for establishing IPD and CPD requirements for Chartered Accountants.

Current Status: Partially Adopted

Code of Ethics for Professional Accountants

Under the Chartered Accountants Act of 1949, the Institute of Chartered Accountants of India
(ICAI) is responsible for establishing ethical requirements for its members. ICAI’s Code of
Ethics, which was developed in 2009, incorporates elements of the 2005 IESBA Code of Ethics,
with modifification.

Current Status: Not Adopted.

Financial Reporting in Pakistan

Legal and Regulatory Environment

The accounting and financial reporting framework for all companies in Pakistan is stipulated in
the Companies Act of 2017 (formerly Companies Ordinance of 1984)

According to this act, ICAP is also responsible for adopting and issuing auditing standards.
Accounting Framework :
1.Under the Companies Act of 2017, accounting standards are approved for use as adopted
Exchange Commission of Pakistan (SECP).

2. The SECP, however, has delegated the responsibility of developing and adopting accounting
standards to the Institute of Chartered Accountants of Pakistan (ICAP).

Auditing framework

1. Under the Companies Act of 2017, ICAP is responsible for adopting and issuing auditing
standards to be applied in Pakistan, and the institute has adopted the 2018 ISA.

2.companies with paid up capital below one million rupees, are to be audited following auditing
standards adopted and issued by ICAP.

Regulation of Accountancy Profession

In Pakistan, professional accountants are self-regulated by the three professional accountancy

organizations (PAOs):

1. The Institute of Chartered Accountants of Pakistan (ICAP);

2. The Institute of Cost and Management Accountants of Pakistan (ICMAP)

3. The Pakistan Institute of Public Finance Accountants (PIPFA).

The SECP Act establishes the functions of the AOB, which include:

I.overseeing and monitoring the work of ICAP’s Quality Assurance Board (QAB) and Quality
Control Review (QCR) program

II.registering all firms that have achieved a satisfactory QCR rating and deregistration of firms
based on the outcome of the QCR by the QAB

III.ensuring that auditing standards adopted by ICAP are aligned with the International standard.

Chartered Accountants (CAs)

Under the Chartered Accountants Ordinance of 1961 (referred to as CA Ordinance) and the ICAP

By laws of 1983, ICAP is authorized to regulate CAs. ICAP’s responsibilities include:

III.setting ethical requirements for its members.

Cost and Management Accountants (CMAs)

Under the Cost and Management Accountants Act of 1966 (referred to as CMA Act), ICMAP
is.authorized to regulate CMAs. The responsibilities of ICMAP include: I.administering the Cost
and Management (CMA) program and establishing IPD and CPD requirements

II. setting ethical requirements for its members.

Public Finance Accountants (PFA)

PIPFA is responsible for establishing IPD and CPD requirements, ethical requirements, and an
I&D system for its members.

Financial reporting of Sri Lanka :

Legal and regulatory environment

Financial reporting requirements in Sri Lanka are outlined in several laws, which include the
Companies Act No. 7 of 2007, Securities and Exchange Commission Act No. 36 of 1987,
Banking Act No. 30 of 1988, Finance Business Act of 2012, Regulation of Insurance Industry Act
No. 27 of 2011, Inland Revenue Act No. 9 of 2015, Microfinance Act No. 6 of 2016, Finance Act
No. 38 of 1971, and Accounting and Auditing Standards Act No. 15 of 1995.

• Regulation of Accountancy Profession

The three professional accountancy organizations and the Sri Lanka Accounting and Auditing
Standards Monitoring Board (SLAASMB) share responsibility for regulating the accountancy
profession in Sri Lanka.

Under the Chartered Accountants Act No. 23 of 1959, the Institute of Chartered Accountants of
Sri Lanka (CA Sri Lanka) is responsible for establishing initial professional development (IPD)
and continuing professional development (CPD) requirements for Chartered Accountants;
setting accounting, auditing, and public sector accounting standards; setting ethical
requirements for Chartered Accountants; and the operation of an investigative and disciplinary
system for its members.

Under the Institute of Certified Management Accountants of Sri Lanka Act No. 23 of 2009, the
Institute of Certified Management Accountants of Sri Lanka (CMA Sri Lanka) was established to
regulate the Certified Management accounting profession.

Audit Oversight Arrangements

The Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAASMB) was
established under the Accounting and Auditing Standards Act No. 15 of 1995 as an audit
oversight entity. Its functions include: (i) monitoring compliance with accounting and auditing
standards; (ii) conducting on-site reviews of audit firms to determine compliance with auditing
standards

Adoption of International Standards

focused on whether firms had established policies and procedures in compliance with SLSQC.

Current Status: Partially Adopted

International financial Reporting standard

Under the Accounting and Auditing Standards Act No.15 of 1995, the Institute of Chartered
Accountants of Sri Lanka (CA Sri Lanka) is responsible for setting accounting standards in Sri
Lanka and has adopted the 2013 IFRS with modifications as the Sri Lankan Financial Reporting
Standards (SLFRS).