The CA Institute has approved three guidance notes that could have significant bearing on how economic activities in the real estate, oil and gas and other energy related sectors

The CA Institute has approved three guidance notes that could have significant bearing on how economic activities in the real estate, oil and gas and other energy related sectors are accounted by companies.

The Central Council has approved guidance notes on real estate, rate regulated activities like gas and also on carbon emissions, Mr G Ramaswamy, CA Institute President told Business Line here after the meeting.

In the case of real estate sector, the guidance note will help bring uniformity in the way real estate companies recognise their incomes. Currently, there is no uniform system for recognition of income by real estate companies, Mr Ramaswamy pointed out.

All the guidance notes issued by the CA institute are mandatory on its members. Companies that do not adopt the accounting principles suggested by the guidance note run the risk of their financial statements getting qualified by statutory auditors.