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Research Committee, since its inception in 1955, has been working relentlessly towards providing guidance to the members of the Institute in various areas of professional interest particularly, accounting and auditing, so as to enhance the value of the services rendered by the prfessional. The scope of the work of the Committee is vast, covering preparation and publication of guidance notes, research studies, monographs, technical guides etc. Many of the publications of the Committee have been found useful and appreciated not only not only by the members but also by others. Apart from the above, the views of the ICAI, on the issues referred to it, are sent to various regulatory bodies under the aegis of the Committee. During the year, the Committee continued its efforts towards enhancing the value of the services rendered by the profession by bringing out new publications / revising the existing ones.

Realising the need for prescribing appropriate accounting treatment for the newly introduced financial instruments in the market, the Committee issued Guidance Note on Accounting for Equity Index Options and Equity Stock Options The Committee also issued Study on Accounting in Power Sector which reviews and evaluates the existing framework of accounting and financial reporting under which various principal power section entities, particularly State Electicity Boards, are preparing their financial statements. The study would be useful in effectively bringing about reforms in power sector. The Technical Guide on Accounting and Auditing in Hotel Industry had been released.

The drafts of Guidance Note on Accounting for Securitisation and Guidance Note on Accounting for Oil and Gas Producing Enterprises are under consideration of the Committee. With the Introduction of trading in stock futures, the Committee has decided to issue Guidance Note on Accounting for Equity Stock Futures on a priority basis. Apart from this, the Committee has decided to undertake several new projects duiring the year, such as, Guidance Note on the manner of estimating future cash flows and discount rates, Guidance Note on Accounting for Investments of Venture Capital Companies, Technical Guide on Accounting and Audit of Roads, Toll Bridges and Other Infrastructure Projects. The Committee has also decided to undertake revision of certain existing publications brought out by it, such as, study on Share Valuation, Tehcnical Guide for Audit of Sugar Industry, Guidance Note on Provision for Expenditure and Section 43 B of the Income Tax Act, Besides the above, significant progress has been made in respect of other projects also which are at various stages of completion.

During the year under the aegis of the Committee, views of the ICAI were sent to various Government and regulatory authorities (e.g., views on Accounting for Repurchase Agreements (REPOs) were sent to RBI and views on validity of Indian Traditional System of Accountancy (Bahi-Khata) were sent to the Department of Company Affairs). Apart from this comments on the Draft Cost Accounting Records Rules in respect of Milk Food, Bulk Drugs, Vanaspati, Formulations, Aluminium Telecommunication, Electricity, Plantation and Petroleum Industries and Cost Audit Report Rules were presented to the Department of Company Affairs. Most of the comments offered were accepted by the said Department.

The Shield Panel, a sub-committee of the Research Committee, declared annual awards for the best Presented Accounts for the year 2000-2001, in respect of various categories. The Shields were presented by the then Hon'ble Union Minister of Law, Justice & Company Affairs Shri Arun Jaitely at the Annual Function of the ICAI held on 2nd February, 2002.

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