National Financial Reporting Authority - Revision history

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	{{use Indian English\|date=August 2017}}		{{use Indian English\|date=August 2017}}

	'''National Financial Reporting Authority (NFRA)''' (https://nfra.gov.in) is an independent regulator to oversee the auditing profession and accounting standards in India under [[Companies Act 2013]]. <ref>{{citation\|title=CAs have not covered themselves in glory\|date=1 August 2017\|url=http://www.thehindubusinessline.com/opinion/cas-have-not-covered-themselves-in-glory/article9797334.ece\|work=[[The Hindu Business Line]]}}</ref> It came into existence in October 2018. The Centre has appointed former IAS officer [[Rangachari Sridharan]] as chairperson of NFRA.<ref>{\| Citation="Centre" appoints ex-IAS officer as chairperson of NFRA		'''National Financial Reporting Authority (NFRA)''' (https://nfra.gov.in) is an independent regulator to oversee the auditing profession and accounting standards in India under [[Companies Act 2013]].<ref>{{citation\|title=CAs have not covered themselves in glory\|date=1 August 2017\|url=http://www.thehindubusinessline.com/opinion/cas-have-not-covered-themselves-in-glory/article9797334.ece\|work=[[The Hindu Business Line]]}}</ref> It came into existence in October 2018. The Centre has appointed former IAS officer [[Rangachari Sridharan]] as chairperson of NFRA.<ref>{\| Citation="Centre" appoints ex-IAS officer as chairperson of NFRA
	\|url=http://www.timesofindia.com/business/india-business/ex-ias-officer-to-head-new-regulator-of-auditors/articleshow/66011549.cms		\|url=http://www.timesofindia.com/business/india-business/ex-ias-officer-to-head-new-regulator-of-auditors/articleshow/66011549.cms
	\|}</ref>		\|}</ref>
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	==Officeholders==		==Officeholders==
	NFRA consists of one chairman, three full-time members and one secretary.<ref name=th0318/> Rangachari Sridharan was appointed as the first chairman of the body in October 2018.<ref name=bs1018>{{citation \|title=ICAI expresses disappointment with Centre over dismissive stance on NFRA \|url=https://wap.business-standard.com/article/finance/icai-expresses-disappointment-with-centre-over-dismissive-stance-on-nfra-118101800860_1.html \|work=[[Business Standard]] \|date=19 October 2018 }}</ref~~><ref name=th0318/~~>		NFRA consists of one chairman, three full-time members and one secretary.<ref name=th0318/> Rangachari Sridharan was appointed as the first chairman of the body in October 2018.<ref name=th0318/><ref name=bs1018>{{citation \|title=ICAI expresses disappointment with Centre over dismissive stance on NFRA \|url=https://wap.business-standard.com/article/finance/icai-expresses-disappointment-with-centre-over-dismissive-stance-on-nfra-118101800860_1.html \|work=[[Business Standard]] \|date=19 October 2018 }}</ref>

	Sridharan, a 1983 batch (retired) IAS officer of Karnataka cadre, will hold the post of chairperson, NFRA, for three years or till the incumbent attains the age of 65 years, the order said. Besides him, Prasenjit Mukherjee has been appointed as full-time member of the authority for the same tenure, the order issued by Personnel Ministry said. Mukherjee is a 1980 batch (retired) officer of Indian Audit and Accounts Service.<ref>https://www.financialexpress.com/industry/who-is-rangachari-sridharan-former-ias-officer-appointed-chief-of-national-financial-reporting-authority-details-to-know-about-him/1330487/</ref>		Sridharan, a 1983 batch (retired) IAS officer of Karnataka cadre, will hold the post of chairperson, NFRA, for three years or till the incumbent attains the age of 65 years, the order said. Besides him, Prasenjit Mukherjee has been appointed as full-time member of the authority for the same tenure, the order issued by Personnel Ministry said. Mukherjee is a 1980 batch (retired) officer of Indian Audit and Accounts Service.<ref>https://www.financialexpress.com/industry/who-is-rangachari-sridharan-former-ias-officer-appointed-chief-of-national-financial-reporting-authority-details-to-know-about-him/1330487/</ref>

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{{Use dmy dates|date=August 2017}}
{{use Indian English|date=August 2017}}

'''National Financial Reporting Authority (NFRA)''' (https://nfra.gov.in) is an independent regulator to oversee the auditing profession and accounting standards in India under [[Companies Act 2013]]. <ref>{{citation|title=CAs have not covered themselves in glory|date=1 August 2017|url=http://www.thehindubusinessline.com/opinion/cas-have-not-covered-themselves-in-glory/article9797334.ece|work=[[The Hindu Business Line]]}}</ref> It came into existence in October 2018. The Centre has appointed former IAS officer [[Rangachari Sridharan]] as chairperson of NFRA.<ref>{| Citation="Centre" appoints ex-IAS officer as chairperson of NFRA
|url=http://www.timesofindia.com/business/india-business/ex-ias-officer-to-head-new-regulator-of-auditors/articleshow/66011549.cms
|}</ref>

NFRA is located in HT Building, Kasturba Gandhi Marg, New Delhi - 110003.

== History ==

After the [[Satyam scandal]] took place in 2009, the Standing Committee on Finance proposed the concept of the National Financial Reporting Authority (NFRA) for the first time in its 21st report.<ref name=th0318>{{citation |title=What is National Financial Reporting Authority? |url=https://www.thehindu.com/business/Economy/what-is-national-financial-reporting-authority/article23280972.ece |work=[[The Hindu]] |date=17 March 2018 }}</ref> [[Companies Act, 2013]] then gave the regulatory framework for its composition and constitution. The Union Cabinet approved the proposal for its establishment on 1 March 2018. 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.<ref name=fe1018>{{citation |title=NFRA is a necessity, ICAI contentions are contrary to international standards; here's why |url=https://www.financialexpress.com/opinion/nfra-is-a-necessity-icai-contentions-are-contrary-to-international-standards-heres-why/1356439/ |work=[[The Financial Express (India)|Financial Express]] |date=22 October 2018 }}</ref>

== Powers & duties ==
According to Section 132 of Companies Act 2013, "NFRA is responsible for recommending accounting and auditing policies and standards in the country, undertaking investigations, and imposing sanctions against defaulting auditors and audit firms in the form of monetary penalties and debarment from practice for up to 10 years."<ref name=fe1018/>

Pursuant to the [https://www.webtel.in/Image/NFRARules2018_13112018.pdf NFRA Rules, 2018], the powers of the NFRA were extended to include the governing of auditors of companies listed in any stock exchange, in India or outside of India, unlisted public companies above certain thresholds, and other companies specified in Rule 3 (1) therein.

Rules 7 and 8 allow for the monitoring of accounting and auditing professionals of the companies referred to in Rule 3 (1).

Companies under Rule 3 (2) and 3 (3) are required to disclose information of their auditors to the NFRA through form NFRA-1.

==Officeholders==
NFRA consists of one chairman, three full-time members and one secretary.<ref name=th0318/> Rangachari Sridharan was appointed as the first chairman of the body in October 2018.<ref name=bs1018>{{citation |title=ICAI expresses disappointment with Centre over dismissive stance on NFRA |url=https://wap.business-standard.com/article/finance/icai-expresses-disappointment-with-centre-over-dismissive-stance-on-nfra-118101800860_1.html |work=[[Business Standard]] |date=19 October 2018 }}</ref><ref name=th0318/>

Sridharan, a 1983 batch (retired) IAS officer of Karnataka cadre, will hold the post of chairperson, NFRA, for three years or till the incumbent attains the age of 65 years, the order said. Besides him, Prasenjit Mukherjee has been appointed as full-time member of the authority for the same tenure, the order issued by Personnel Ministry said. Mukherjee is a 1980 batch (retired) officer of Indian Audit and Accounts Service.<ref>https://www.financialexpress.com/industry/who-is-rangachari-sridharan-former-ias-officer-appointed-chief-of-national-financial-reporting-authority-details-to-know-about-him/1330487/</ref>

==Impacts==
Due to notification of NFRA, India is now eligible for membership of [[International Forum of Independent Audit Regulators]] (IFIAR).<ref name=fe1018 /> [[Institute of Chartered Accountants of India]] (ICAI) however, is not open to the establishment of such an authority as it fears reduction in its own powers.<ref name=bs1018/>

==See also==
* [[Public Company Accounting Oversight Board]] (PCAOB)

== References ==
{{Reflist}}

{{authority control}}

[[Category:Standards organisations in India]]
[[Category:Financial reporting]]

{{India-stub}}