Regulation 165 — Audit Regulations 2020
Original Rule Text
# 165. Role of the Comptroller and Auditor General in accounting standards for Government
(1) Government Accounting Standards Advisory Board set up in the office of the Comptroller and Auditor General with the support of the Government of India. The Board is entrusted with the responsibility of formulating and proposing accounting and financial reporting standards in Government departments and organisations.
(2) The Board is chaired by the Deputy Comptroller and Auditor General and comprises of accounting heads of the Government of India, Ministry of Finance, RBI, State Finance Secretaries, ICAI, ICWAI, as members.
Regulations on Audit and Accounts 2020
(3) The Government Accounting Standards Advisory Board is also entrusted with the responsibility of preparing a framework and a roadmap for shift to accrual accounting. (4) The standards proposed by the Board and notified by the Government are under the authority of Article 150 of the Constitution of India. (5) The response to accounting standards approved by GASAB shall be received from the Ministry of Finance within three months of its approval by full board.
What This Means
The Government Accounting Standards Advisory Board (GASAB), set up in the CAG's office with government support, formulates accounting and financial reporting standards for government organizations. Chaired by the Deputy CAG, the Board includes representatives from the Ministry of Finance, RBI, State Finance Secretaries, ICAI, and ICWAI. GASAB is also responsible for preparing a roadmap for transitioning to accrual accounting. Standards approved by GASAB and notified by the government carry constitutional authority under Article 150. The Ministry of Finance must respond to approved standards within three months.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1GASAB formulates accounting and financial reporting standards for government
- 2Chaired by the Deputy CAG with members from Finance Ministry, RBI, State Finance Secretaries, ICAI, ICWAI
- 3GASAB is preparing a roadmap for shift to accrual accounting
- 4Notified GASAB standards carry authority under Article 150 of the Constitution
- 5Ministry of Finance must respond to approved standards within 3 months
Practical Example
GASAB develops a new Indian Government Accounting Standard (IGAS) on recognition and measurement of government assets. After deliberation by the Board (including inputs from the Controller General of Accounts, RBI, and state Finance Secretaries), the standard is approved and notified by the government. The Ministry of Finance must respond within 3 months — either accepting it for implementation or raising specific concerns. Once notified, all government departments must follow this standard when accounting for their assets, as it derives authority from Article 150.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the difference between cash accounting and accrual accounting that GASAB is working towards?▼
Are GASAB standards mandatory for all government departments?▼
Why are professional bodies like ICAI and ICWAI represented on GASAB?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.