National Financial Reporting Authority

National Financial Reporting Authority (NFRA) is a body proposed in Companies Act 2013 for the establishment and enforcement of accounting and auditing standards and oversight of the work of auditors.[1]

The Centre has appointed former IAS officer Rangachari Sridharan as chairperson of NFRA.

Background

The concept and composition of the National Financial Reporting Authority (NFRA) was originally introduced by the Companies Act, 2013. The Union Cabinet on 1st March, 2018 approved the proposal for establishing the National Financial Reporting Authority (NFRA). The establishment of NFRA as an independent regulator for the auditing profession will improve the transparency and reliability of financial statements and information presented by listed companies and large unlisted companies in India.[2]

Jurisdiction

The jurisdiction of the NFRA for investigation of Chartered Accountants and their firms would extend to listed companies and large unlisted public companies. The thresholds for large unlisted public companies under the jurisdiction of the NFRA has not yet been announced. However, as per the draft National Financial Reporting Authority rules, unlisted companies with net worth not less than Rs.500 crores or paid-up capital not less than Rs.500 crores or annual turnover not less than Rs.1,000 crores as on 31st March of immediately preceding financial year and companies having securities listed outside India will be under the jurisdiction of NFRA.

References

  1. ↑ "CAs have not covered themselves in glory", The Hindu Business Line, 1 August 2017
  2. ↑ "National Financial Reporting Authority - Rules & Powers - IndiaFilings". www.indiafilings.com. Retrieved 2018-03-04.


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