New SEZ accounting norms to increase transparency

shailesh agarwal (professional accountant)   (7642 Points)

20 June 2009  

 

New SEZ accounting norms to increase transparency

19 Jun 2009, 0349 hrs IST, Souvik Sanyal, ET Bureau

 

 
NEW DELHI: The Institute of Chartered Accountants of India (ICAI) will soon unveil accounting norms for special economic zones (SEZs) in the 

country. The new norms will standardise financial disclosure of SEZs as well as bring about greater transparency. 



The guidance note which is now open to the public for their suggestions seeks to bring uniformity in the manner land allotted to SEZ’s is to be treated. The various other aspects of accounting that are being aimed at uniformity is on the project development costs, rehabilitation and resettlement costs and of activities performed after a zone is notified. 



With huge investments going into SEZ projects, the new norms will ensure that the developers are made to follow standardised norms of accounting for their investments and revenue earned, and will provide them greater clarity in maintaining their accounts, said an ICAI official, who did not wish to be named. 



The objective of this technical guide is to provide guidance to developers on accounting treatment of various SEZ development activities in their financial statements. The accounting guide comes at a time when the entire concept of SEZ is being discussed with the developers demanding further incentives.