GASAB
GASAB stands for Government Accounting Standards Advisory Board
Constituted by the Comptroller and Auditor General of India (CAG) on 12 August 2002.
Acts as the nodal advisory body for setting government accounting and financial reporting standards in India.
Established to improve governance, fiscal prudence, efficiency and transparency in public sector financial reporting.
Helps the government move from rule-based cash accounting to principle-based accrual accounting.
Types of Standards Prepared
Indian Government Accounting Standards (IGAS):
For cash basis government accounting – these become mandatory once notified by the Government.IGAS 1: Guarantees given by Governments – Disclosure Requirements
IGAS 2: Accounting and Classification of Grants-in-Aid
IGAS 3: Loans and Advances made by Governments
IGAS 4: Prior Period Adjustments (rectifying past errors)
Other IGAS under consideration include Foreign Currency transactions, Public Debt and Other Liabilities.
Indian Government Financial Reporting Standards (IGFRS):
For accrual basis accounting – issued initially as recommendatory for pilot studies and future rollout.IGFRS 1: Presentation of Financial Statements
IGFRS 2: Property, Plant and Equipment
IGFRS 3: Revenue from Government Exchange Transactions
IGFRS 4: Inventories
IGFRS 5: Contingent Liabilities and Contingent Assets
Structure of the Board
Chairperson: Deputy C&AG (Government Accounts)
Member Finance, Indian Railways
Secretary level officers from Department of Telecom, Department of Post
Controllers General (Accounts; Defence Accounts)
Officials from Ministry of Finance and Reserve Bank of India
Finance Secretaries of four States (rotational)
President of Institute of Chartered Accountants of India or nominee
Director General/Principal Director (Government Accounts) as Member Secretary
Core Responsibilities
Establish and improve government accounting standards.
Propose standards to make financial reports more useful.
Keep standards updated with changes in governmental environment.
Provide implementation guidance.
Promote common understanding of financial reporting.
GASAB and Indian Railways – Link & Context
Indian Railways has representation on GASAB via the Member Finance (Railways).
Railways is a major government entity with complex assets, liabilities, operating revenues and expenditures – making quality reporting essential.
GASAB’s accrual standards provide a framework to help Railways move towards modern financial reporting.
Accrual Accounting – What & Why
Accrual Accounting records transactions when they occur, irrespective of cash movement:
Records assets and liabilities alongside revenue and expenses.
Provides a complete and transparent view of an organization’s financial position.
Recommended by the Twelfth Finance Commission for improved government financial reporting.
GASAB was asked to develop a road map and operational framework for implementation.
Progress in Implementation
IGFRS (accrual standards) have been issued for pilot use but are not yet mandatory nationwide.
Indian Railways has initiated preparatory reforms, including:
Asset valuation and accounting system enhancement.
Developing accrual-compatible accounting practices.
Training staff and piloting certain accrual reporting elements.
Full accrual adoption across Indian Railways remains in progress, not fully implemented yet.
Key Points for MCQ
Founded: 12 August 2002.
Founded by: Comptroller and Auditor General of India.
Main Aim: Improve government financial reporting and accountability.
Two Standard Types:
IGAS = Cash basis standards
IGFRS = Accrual basis standards (pilot/recommendatory)
Standards – Numbers to Remember
IGAS 1–4 (notified or under govt. consideration).
IGFRS 1–5 (for accrual reporting pilots).
Indian Railways represented on GASAB.
Railways is among main government departments preparing for accrual accounting.
Accrual Accounting
Recommended by Twelfth Finance Commission.
GASAB to design road map and accrual framework.
Status: Draft standards issued, full implementation pending.
📌 Quick Recap:
GASAB = Accounting standards board for government.
IGAS = Mandatory cash standards; IGFRS = Accrual standards (recommendatory).
Indian Railways is actively involved but full accrual accounting is still being phased in.
GASAB - Revision sheet
1. What is GASAB?
➡️ Government Accounting Standards Advisory Board – nodal advisory body for government accounting standards.
2. When was GASAB constituted?
➡️ 12 August 2002 by the Comptroller and Auditor General of India.
3. Aim of GASAB?
➡️ Improve transparency, accountability & quality in government financial reporting.
4. Two types of standards developed by GASAB?
➡️ IGAS – Indian Government Accounting Standards (cash basis)
➡️ IGFRS – Indian Government Financial Reporting Standards (accrual basis)
5. IGAS – Mandatory or Recommendatory?
➡️ Mandatory once notified by Government.
6. IGFRS – Mandatory or Recommendatory?
➡️ Recommendatory initially for pilot studies; mandatory only after government notification.
7. IGAS Notified Standards (Key Numbers)
➡️ IGAS 1: Guarantees given by Governments – Disclosure Requirements
➡️ IGAS 2: Accounting and Classification of Grants-in-Aid
➡️ IGAS 3: Loans and Advances made by Governments
➡️ IGAS 4: Prior Period Adjustments
8. IGFRS Standards (Draft / Under Consideration)
➡️ IGFRS 1: Presentation of Financial Statements
➡️ IGFRS 2: Property, Plant & Equipment
➡️ IGFRS 3: Revenue from Government Exchange Transactions
➡️ IGFRS 4: Inventories
➡️ IGFRS 5: Contingent Liabilities & Contingent Assets
9. Governing Article of Constitution for GASAB
➡️ Article 150 – accounts of Union and States kept as prescribed by President on CAG’s advice.
10. Key Member Relevant to Indian Railways
➡️ Member Finance, Railways as GASAB member.
11. Implementation Status of Accrual Accounting
➡️ IGFRS issued, used for pilot/experiments.
➡️ Full accrual adoption not yet mandatory.
12. Important Commission Recommendation
➡️ Twelfth Finance Commission recommended accrual accounting reform; GASAB drew roadmap framework.
13. Cash vs Accrual Accounting – Quick Fact
➡️ Cash basis: records when cash moves.
➡️ Accrual basis: records when transaction occurs (including assets & liabilities).
14. Importance for Exams
✔️ GASAB = Government Accounting Standards Advisory Board
✔️ IGAS 1–4 notified (cash).
✔️ IGFRS 1–5 recommendatory (accrual).
✔️ Indian Railways represented in GASAB.
✔️ Full accrual adoption ongoing, not complete.
