The Supreme Court of India has upheld the order that only CA's and cost accountants can audit and certify sale stax returns and not tax lawyers and former sales tax officers who were providing services to companies as sales tax consultants.The ammended Act now makes it mndatory for traders with annual sales of over 40 lakhs - to file sales tax returns verified by CA's or cost accountants only. This was challenged by the Tax Practitioners Association of Maharashtra.

The Country's Apex accounting body- The Institute of Chartered Accountants of India -ICAI has asked companies to disclose losses on derivatives contracts from financial year ending 31st March,2008.Though this is not a new accounting norm but a clarification on the best practices that can be adapted by the companies.This would enable the real loses suffered by the companies in the derivatives sector to be more transparent.Some companies are reluctant to disclose losses suffered due to the positions taken in currency derivatives following fluctuations in the foreign exchange rates. The new norms-Accounting Standard AS-30 Financial Instruments spells out the methods for accounting of derivatives.Though the disclosure norms are recommendatory now they would become mandatory from 2011. The ICAI council hopes for an earlier adaptation of the new norms.Till 1986, most derivatives instruments were not recognised or if reported, it was i nominal accounts. Today both the IAS-( International Accounting Standards) and the FASB (US Financial Accounting) recognise theer instruments as valid financial instruemnts.

The US has opposed the M&A rules under the new competition law that requires foreign companies to obtain government approval for mergers and acquisitions, including those taking place outside the country.The M&A provision in the Competition Act once notified would mean any company even with limited access to Indian markets to seek approval from the competition commission for M&A's taking place even outside India

ICAI is working on a new set of norms to enable transparent accounting of carbon credits.Carbon Credits are earned by reducing carbon emissions from plants etc. Indian companies can also profit by selling their carbon credits in dedicated exchanges in Europe and the US at a much higher price. Carbon credit or certified emission reduction(CER) are awarded by the CDM (clean development mechanism).The Country's Apex accounting body- The Institute of Chartered Accountants of India -ICAI is working on a new set of norms to enable transparent accounting of carbon credits which are presently classified as other income. Once the new norms are in place companies will have to show these earnings from carbon credit separately.

As per the proposed norm in EU's eighth directive many Indian companies listed in European bourses may have to make greater disclosures in their financial statements and be monitored by an independent oversight body. This would mean that these companies may have to get their balance sheet re-audited by audit firms in Europe or face de-listing.Re-auditing would drive up costs substantially.