India to adopt IFRS despite lack of US support
IFRS, despite roadblocks which include the lack of commitment by the US to adopt IFRS, say accounting experts.
There continues to be significant gaps between US GAAP and IFRS,
including accounting treatment in such areas as leasing, insurance and
losses on financial instruments.
Most recently, the final staff report by the US Securities and Exchange
Commission (SEC), published on 13 July 2012, did not include a
recommended action plan for the SEC.
Despite this, some
accounting experts in India are of the view that India’s interests will
be well served if convergence with IFRS is achieved
The CA
Institute president, Jaydeep Shah, speaking to The Hindu Business Line ,
asserts that India’s decision on aligning with IFRS will not be
dictated by the US stance on the matter.
‘Our decision will be
taken by the corporate affairs ministry. It will be done after taking a
holistic view and not be country-based.’
He added that he hoped IFRS convergence will progress further once the new Companies Bill in India is enacted.
For some years now, India has been developing its own accounting standards (Ind-AS) that seeks to converge with the IFRS.
In early 2010, the ministry of corporate affairs issued various press
releases on the IFRS roadmap and convergence plan for India specifying
the convergence date to be 1 April 2011, though 2014 for select Indian
companies. However, the implementation date of Ind-AS is yet to be
finalised.
Currently, the US, Japan and India are the three
main economies that have not adopted IFRS. Canada, Brazil and Russia
moved to IFRS in 2011.