Why in the news?
The National Financial Reporting Authority (NFRA) on July 20, 2020 constituted a technical advisory committee (TAC) under the chairmanship of R. Narayanaswamy, Professor, Indian Institute of Management, Bangalore.
This TAC, which comprises seven members including the chairman, would among other things aid and advise the executive body of the NFRA on issues relating to drafts of accounting standards and auditing standards.
About National Financial Reporting Authority
The National Financial Reporting Authority (NFRA) was constituted on 01st October,2018 by the Government of India under Sub Section (1) of section 132 of the Companies Act, 2013.
The objective of the National Financial Reporting Authority (NFRA) is to continuously improve the quality of all corporate financial reporting in India.
Its main functions are:
1. Recommend accounting and auditing policies and standards to be adopted by companies for approval by the Central Government;
2. Monitor and enforce compliance with accounting standards and auditing standards;
3. Oversee the quality of service of the professions associated with ensuring compliance with such standards and suggest measures for improvement in the quality of service;
4. Perform such other functions and duties as may be necessary or incidental to the aforesaid functions and duties.
Sub Rule (1) of Rule 4 of the NFRA Rules, 2018 , provides that the Authority shall protect the public interest and the interests of investors, creditors and others associated with the companies or bodies corporate governed under Rule 3 by establishing high quality standards of accounting and auditing and exercising effective oversight of accounting functions performed by the companies and bodies corporate and auditing functions performed by auditors.
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