Govt to amend cost audit rules under companies law

New Delhi: The government will amend the cost audit rules under the companies law in order to ensure parity between financial and cost records.
The amendments have been mooted pursuant to implementation of the Indian Accounting Standards (Ind AS), which is converged with global accounting norms. The corporate affairs ministry, which is implementing the Companies Act, has come out with a draft of the proposed amendments to the Cost Records and Audit rules.
Various existing provisions under these rules, including some related to intangible assets, would be done away with while Ind AS compliance would be required for certain other aspects.
“Pursuant to implementation of Ind AS, the Companies (Cost Records and Audit) Rules, 2014 are to be amended to bring parity between financial records and cost records,” the ministry said in a communication.