Ministry of Corporate Affairs has issued a notification dated 22-4-2008 (F. No. l/5/2001 -CL- V) to constitutes an Advisory Committee to be called the National Advisory Committee on Accounting Standards, to advise the Central Government on the formulation and laying down of accounting policies and accounting standards for adoption by companies or class of companies under the said Act.

National Advisory Committee on Accounting Standards advises central government on formulation and adoption of accounting policies and standards. Constitution of the National Advisory Committee on Accounting Standards to advise the Central Government on the formulation and laying down of accounting policies and accounting standards for adoption by companies or classes of companies under the Act, establishing a consultative mechanism to inform the government's standard-setting process and corporate reporting requirements.