The Challenge of Accounting Standards: A Critical Perspective

24 Pages Posted: 2 Dec 2012

See all articles by R. Narayanaswamy

R. Narayanaswamy

Indian Institute of Management (IIMB), Bangalore

Date Written: July 30, 1992


This paper identifies a number of serious deficiencies in the current constitutional arrangements as well as processes for setting accounting standards in India.

The author examines the recent move by the Institute of Chartered Accountants of India to enforce some accounting standards. This is an important move towards disciplining corporate financial reporting but the standards are not tight enough and they have been formulated by a process not open to public scrutiny/argues the author. Besides, the Institute has no powers for enforcing the standards on preparers of financial statements.

The author proposes a private sector solution: the establishment of preparers us£rs and auditors of financial statements for formulating standards. The decisions and processes of the proposed body should be open to public scrutiny says the author.

Suggested Citation

Narayanaswamy, Ramaswami, The Challenge of Accounting Standards: A Critical Perspective (July 30, 1992). IIM Bangalore Research Paper No. 14, Available at SSRN: or

Ramaswami Narayanaswamy (Contact Author)

Indian Institute of Management (IIMB), Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076

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