National Advisory Committee on Accounting Standards (NACAS) is a body set up under section 210A of the Companies Act, 1956 by the Government of India. It Advises the Central Government on the formulation and laying down of accounting policies and accounting standards for adoption by companies [1]. Institute of Chartered Accountants of India (ICAI) has the responsibility of preparing the accounting standards. CA.Y H Malegam is the current chairman of NACAS. He is a past president of Institute of Chartered Accountants of India, (ICAI). CA. M M Chitale will take charge as the chairman from February 2011. He is also a Chartered Accountant [2].