NEW DELHI, FEB 13, 2013: THE ICAI has suggested a new roadmap for adopting International Financial Reporting Standards by Indian Companies amid growing competitiveness and Globalisation. Since the International Accounting Standards board is expected to come up with new standards on important areas
like leasing, financial instruments, we don't want our corporate to face hardships, it is stated.
The Corporate Affairs Ministry has assured to look at the proposal and consider it. Companies with a net worth of over Rs 1,000 crore will have to adopt International Financial Reporting Standards (IFRS) from April 1, 2015 for preparing their financial statements. For companies with net worth of Rs 500-1,000 crore, the recommended date is April 1, 2016. For all other companies (including listed ones), the recommended date is April 1, 2017.
The CA Institute Chairman made it clear that the new IFRS roadmap does not cover banks and insurance companies and it was for the particular sectoral regulators viz. Reserve Bank of India and Insurance Regulatory and Development Authority to decide the date of IFRS enforcement.
The Government was earlier looking to enforce IFRS from April 1, 2011. But this was not implemented. On its part, the CA institute has already prepared Indian accounting standards (Ind AS) that converged with IFRS. The RBI has convened a meeting next week with the top brass of the CA institute to discuss IFRS related issues for the banking sector.
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