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Institute of Chartered Accountants has issued a Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities. It has been clarified by ICAI that during the pendency of the finalisation of this Guidance Note, it had issued ‘Frequently Asked Questions’ FAQ on the provisions of CSR. The said FAQ was meant for providing an interim guidance and with the issuance of the Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities, the said FAQs stand withdrawn so far as it is related to the areas covered by the Guidance Note.This suggest with respect to that matters covered by FAQ and not dealt with by the Guidance Note, FAQ is still relevant. Since what constitute CSR activities has been specified as per Schedule VII of the Companies Act, 2013, the Guidance Note seeks to provide only a guidance on the aspects of recognition, measurement, presentation and disclosure of expenditure on activities relating to corporate social responsibility as per the provisions Section 135 of the Companies Act 2013. Apart from manner of presentation and disclosure in the financial statements, the Guidance Note deals with many important questions like, provisioning of unspent amount, income earned from CSR projects, assets arising out of CSR expenditure etc.
Download ICAI Guidance Note on Accounting for Expenditure on CSR Activities
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Corporate Social Responsibility under Companies Act 2013 Click Here >>
ICAI FAQ on CSR Click Here >>
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