Only 53% Indian businesses are aware of the impending global changes in the existing accounting standards that will impact the way they recognise and report revenue, according to a survey.
Besides, of the 2,800 businesses surveyed by Grant Thornton, nearly 60% believed that existing accounting standards, which are almost two decades old, need to be improved or replaced.
The new accounting standard IFRS is scheduled to be implemented next year.
Areas that may be affected because of the new rules include multiple element arrangements, sales incentives, contingent pricing arrangements and contracts with a significant financing element.
Sai Venkateshwaran, Partner and IFRS Practice Leader of Grant Thornton India, said: "The proposals will change the amount or timing or revenue in some cases, although the impact will differ for companies applying IFRS, US GAAP and Indian GAAP."
Besides, of the 2,800 businesses surveyed by Grant Thornton, nearly 60% believed that existing accounting standards, which are almost two decades old, need to be improved or replaced.
The new accounting standard IFRS is scheduled to be implemented next year.
Areas that may be affected because of the new rules include multiple element arrangements, sales incentives, contingent pricing arrangements and contracts with a significant financing element.
Sai Venkateshwaran, Partner and IFRS Practice Leader of Grant Thornton India, said: "The proposals will change the amount or timing or revenue in some cases, although the impact will differ for companies applying IFRS, US GAAP and Indian GAAP."
Financial Express, New Delhi, 20-01-2012
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