NFRA constitutes technical advisory committee

News: National Financial Reporting Authority(NFRA) has constituted a Technical Advisory Committee(TAC) under chairmanship of R.Narayanaswamy to aid and advise NFRA on issues related to the drafts of accounting standards and auditing standards.

Facts:

• National Financial Reporting Authority(NFRA): It is an audit regulator constituted in 2018 by the Government of India under section 132(1) of the Companies Act, 2013.
• Composition: The regulator will have 15 members including a chairperson, three full-time members and others as part-time members.
• Functions and Duties:
  • Recommend accounting and auditing policies and standards to be adopted by companies for approval by the Central Government;
  • Monitor and enforce compliance with accounting standards and auditing standards;
  • 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.
• Powers: It can undertake investigation and impose penalties related to the following class of companies and bodies corporate namely:
  • Companies whose securities are listed on any stock exchange in India or outside India.
  • Unlisted public companies having paid-up capital of not less than Rs. 500 crores or having annual turnover of not less than Rs. 1,000 crores.
  • Insurance companies, banking companies and companies engaged in the generation or supply of electricity.