S.No. Particulars Descriptions
1 Constitution by Central Governm...
of 1

National financial reporting authority

National financial reporting authority under Companies Act, 2013
Published on: Mar 3, 2016
Published in: Education      

Transcripts - National financial reporting authority

  • 1. NATIONAL FINANCIAL REPORTING AUTHORITY (NFRA)-Section-132 S.No. Particulars Descriptions 1 Constitution by Central Government 2 Functions  Recommendations to the CG on the formulation and laying down of accounting and auditing policies and standards for adoption by companies or their auditors.  Monitor and enforce the compliance with accounting standards and auditing standards.  Oversee the quality of service of the professions associated with ensuring compliance and suggest measures required for improvement.  Perform such other functions relating to above. 3 Head Office New Delhi 4 Auditing of books by Comptroller and Auditor-General of India (CAG) 5 Combination CHAIRMAN: a person of eminence and having expertise in accountancy, auditing, finance or law. MEMBERS: (Maximum 15) 6 Not Associated Chairman & Members of NFRA shall not be associated with any audit firm (including related consultancy firms) during the course of their appointment and two years after ceasing to hold such appointment. 7 Powers (Notwithstanding anything contained in any other law for the time being in force) (No other institute or body shall initiate or continue any proceedings in such matters of misconduct where the NFRA has initiated an investigation under this section) General Powers ● Investigate, either suo moto or on a reference made to it by the CG for bodies corporate or persons into the matters of professional or other misconduct committed CA or CA Firm. ● Same powers as are vested in a civil court, while trying a suit. Penalty powers (where professional or other misconduct is proved) ● Impose penalty Individuals Firms Minimum 1,00,000 10,00,000 Maximum 5 Times of fees received 10 Times of fees received ● Debar from practice as member of the ICAI for: Individuals Firms Minimum 6 Months 6 Months Maximum 10 Years 10 Years 8 Appeal against the order of NFRA NFRA Appellate Authority consisting of : ➢ Chairperson ➢ Members (Maximum 2) 9 Advising to CG on standards of accounting or any addendum there (U/s 133) Central Government may prescribe the standards of accounting or any addendum thereto, as recommended by the ICAI in consultation with and after examination of the recommendations made by the NFRA .