ICAI publishes technical guide for auditing, accounting in NPOs

By Our Banking Bureau | 15 May 2003

New Delhi: The Institute of Chartered Accountants of India (ICAI) has issued a technical guide, Accounting and Auditing in Not-for-Profit Organisations (NPO).

Releasing the technical guide, ICAI president R Bupathy said this publication will provide a direction to NPOs in the preparation of their financial statements and presentation of 'true-and-fair' view of their activities. "We will gradually move from a technical guide to a guidance note and then may be even an accounting standard on this issue in the years to follow."

A senior ICAI official pointed out that more than 25,000 NPOs are operating in India, handling large sums of money including contributions from donors abroad. "The guide is to give a sense of direction to NPOs on accounting and auditing issues peculiar to them."