ICAI

ICAI Technical Guide on Accounting for Expenditure on CSR Activities

ICAI Technical Guide on Accounting for Expenditure on CSR Activities

ICAI has released the Technical Guide on Accounting for Expenditure on Corporate Social Responsibility Activities on 1st July, 2020.

This Technical Guide provides guidance on accounting for expenditure on CSR activities in accordance with the requirements of the Generally Accepted Accounting Principles including the applicable Accounting Standards.

This Technical guide consists of FAQs to answer many doubts. For example if the company is required to make a provision for short fall amount of CSR expenditure?  whether excess spent amount may be carried forward? or what would be the treatment of surplus earned from CSR Projects/Programmes ? 

Subsequent to the issue of the Technical Guide on Accounting for Expenditure on Corporate Social Responsibility Activities, the Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities, issued on 15th May 2015, stands withdrawn.

Section 135 of The Companies Act, 2013 makes it mandatory for companies coming within the prescribed criteria, to implement and report CSR policies in the Annual Report of the Company. Which activities would be called “CSR activities” has been listed in Schedule VII of the Companies Act, 2013. 

Download ICAI Guide on Accounting for Expenditure on CSR activities Click Here >> 

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