Three members of the Madhav Godbole committee resign
Mumbai--Three members of the nine-member Madhav Godbole committee constituted to
renegotiate the Enron deal have quit.This is as efforts to renegotiate the Enron power
deal get underway,
The members who have quit are the former union energy secretary and Andhra Pradesh
Electricity Board member E A S Sarma, Tata Energy Research Institute director Rajendra
Pachauri, and Indira Gandhi Institute of Developmental Research professor emeritus Kirit
Parikh.
The Godbole committee has submitted an interim report and a final one is expected by May
31.
The members now on the committee -- apart from Madhav Godbole -- are HDFC chairman Deepak
Parekh, state's energy secretary V M Lal, fertiliser secretary and a representative of the
Centre Anil Gokak, state finance secretary S K Shrivastava and Maharashtra State
Electricity Board chairman Vinay Bansal.
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ICAI prescribes norm for
determination of profit or loss
New Delhi: The Institute of Chartered Accountants of India has
prescribed that enterprises would have to consider deferred tax expense along with current
tax for the determining the net profit or loss for the period.
The institute, in the accounting standard 22 (AS 22) on accounting for taxes on income,
has said that taxes on income are considered to be an expense incurred by an enterprise in
earning income and therefore are accrued in the same period as the revenue and expense to
which they relate.
AS 22 is mandatory in nature and would be applicable to companies with effect from April
1, 2001, if their equity or debt securities are listed on a recognised stock exchange as
also to enterprises which are in the process of issuing securities that would be listed.
The accounting standard will also apply with immediate effect to those companies of a
group, if the group presents consolidated financial statement and if this accounting
standard is mandatory to any entity within that group.
For companies, which do not have or intend to have securities listed on any of the
recognised stock exchanges, AS 22 would be applicable with effect from April 2002. For all
other enterprises, it would be applicable with effect from April 2003.
It is felt that the new norms would ensure that companies present a more realistic picture
of their financial position.
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