{"id":19717,"date":"2025-07-26T14:26:18","date_gmt":"2025-07-26T08:56:18","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=19717"},"modified":"2025-07-26T15:36:08","modified_gmt":"2025-07-26T10:06:08","slug":"nfra","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/nfra\/","title":{"rendered":"National Financial Reporting Authority (NFRA)"},"content":{"rendered":"<h2><b>National Financial Reporting Authority Latest News<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Nitin Gupta, the former Chairman of CBDT, has been recently appointed as the Chairperson of the National Financial Reporting Authority (NFRA). <\/span><\/p>\n<h2><b>About National Financial Reporting Authority<\/b><\/h2>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It is an <\/span><b>independent regulatory body<\/b><span style=\"font-weight: 400;\"> established by the Government of India under Section 132(1) of the <\/span><b>Companies Act, 2013.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Its primary role is to oversee and <\/span><b>enforce compliance with accounting and auditing standards<\/b><span style=\"font-weight: 400;\"> to improve the credibility, quality, and transparency of financial reporting in India.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It aims to protect the interests of investors, stakeholders, and the public by <\/span><b>ensuring high standards in the financial reporting ecosystem.<\/b><\/li>\n<li style=\"text-align: justify;\"><b>Head Office: New Delhi<\/b><\/li>\n<\/ul>\n<h2><b>National Financial Reporting Authority <\/b><b>Functions<\/b><\/h2>\n<ul>\n<li style=\"text-align: justify;\"><b>Recommend accounting and auditing policies and standards <\/b><span style=\"font-weight: 400;\">to be adopted by companies <\/span><b>for approval by the Central Government;<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Monitor and <\/span><b>enforce compliance with accounting standards <\/b><span style=\"font-weight: 400;\">and auditing standards;<\/span><\/li>\n<li style=\"text-align: justify;\"><b>Oversee the quality of service of the professions<\/b><span style=\"font-weight: 400;\"> associated with ensuring compliance with such standards and suggest measures for improvement in the quality of service;<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Perform such other functions and duties as may be necessary or incidental to the aforesaid functions and duties.<\/span><\/li>\n<\/ul>\n<h2><b>National Financial Reporting Authority <\/b><b>Composition<\/b><\/h2>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Companies Act requires the NFRA to have a <\/span><b>chairperson <\/b><span style=\"font-weight: 400;\">who will be <\/span><b>appointed by the Central Government<\/b><span style=\"font-weight: 400;\"> and a<\/span><b> maximum of 15 members.<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The appointment of such chairperson and members is subject to the following <\/span><b>qualifications<\/b><span style=\"font-weight: 400;\">:<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">They should have an <\/span><b>expertise in accountancy, auditing, finance, or law.<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">They are required to <\/span><b>make a declaration<\/b><span style=\"font-weight: 400;\"> to the Central Government that there is <\/span><b>no conflict of interest or lack of independence<\/b><span style=\"font-weight: 400;\"> in their appointment.<\/span><\/li>\n<li style=\"text-align: justify;\"><b>All the members<\/b><span style=\"font-weight: 400;\">, including the chairperson, who are in full-time employment, should <\/span><b>not be associated with any audit firm<\/b><span style=\"font-weight: 400;\"> (including related consultancy firms) <\/span><b>during their term of office and 2 years after <\/b><span style=\"font-weight: 400;\">their term.<\/span><\/li>\n<\/ul>\n<h2><b>National Financial Reporting Authority <\/b><b>Powers<\/b><\/h2>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">NFRA has the <\/span><b>power to investigate<\/b><span style=\"font-weight: 400;\">, either <\/span><b>suo moto or on a reference<\/b><span style=\"font-weight: 400;\"> made to it by the Central Government, into the<\/span><b> matters of professional or other misconduct<\/b><span style=\"font-weight: 400;\"> committed <\/span><b>by any member or firm of chartered accountants <\/b><span style=\"font-weight: 400;\">registered under the Chartered Accountants Act, 1949.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It has the<\/span><b> same powers <\/b><span style=\"font-weight: 400;\">as are vested in a<\/span><b> civil court <\/b><span style=\"font-weight: 400;\">under the Code of Civil Procedure, 1908, while trying a suit.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Where professional or other misconduct is proved, it shall have the <\/span><b>power to impose punishment.<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Any person who is not satisfied with the order of the NFRA can then make an appeal to the Appellate Authority.<\/span><\/li>\n<\/ul>\n<h2><b>National Financial Reporting Authority <\/b><b>Jurisdiction<\/b><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">The jurisdiction of the NFRA for the investigation of Chartered Accountants and their firms would extend to <\/span><b>listed companies and large unlisted public companies,<\/b><span style=\"font-weight: 400;\"> the thresholds for which shall be prescribed in the Rules.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The <\/span><b>Central Government can also refer such other entities<\/b><span style=\"font-weight: 400;\"> for investigation <\/span><b>where public interest would be involved.<\/b><\/li>\n<\/ul>\n<p><b>Source<\/b><span style=\"font-weight: 400;\">: <\/span><a href=\"https:\/\/economictimes.indiatimes.com\/news\/india\/govt-appoints-former-cbdt-chief-nitin-gupta-as-nfra-chairperson\/articleshow\/122659310.cms?from=mdr\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">ET<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>National Financial Reporting Authority was established as an independent authority to regulate the auditing profession and accounting standards in India. Read more about National Financial Reporting Authority (NFRA), Functions, Headquarter, News<\/p>\n","protected":false},"author":5,"featured_media":56868,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[1826,21,22,23],"class_list":{"0":"post-19717","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-national-financial-reporting-authority","9":"tag-prelims-pointers","10":"tag-upsc-current-affairs","11":"tag-upsc-prelims-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/19717","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=19717"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/19717\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/56868"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=19717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=19717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=19717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}