Plans are afoot to make International Financial Reporting Standards (IFRS) mandatory for large-scale companies by April 2011, said K Raju, central council member of the Institute of Chartered Accountants of India (ICAI).
Inaugurating an investor’s awareness programme organized by Mangalore chapter of ICAI in association with Kanara Chamber of Commerce and Industry (KCCI) here on Monday, Raju said the companies tapping international market and the foreign companies investing in India will compulsorily be made to follow IFRS. Already 120 countries in the world have adopted IFRS and it is high time that India adopted the system, he said.
“ICAI will recommend the Central government to appoint joint auditors for listed companies. In banking sector, ICAI has submitted recommendations suggesting appointment of auditors by the Reserve Bank of India (RBI) rather than by the bank managements. At present, RBI appoints auditors only to public sector banks,” he said.
Referring to the huge demand for accounting professionals, he said ICAI will start a course of accounting technicians, which will help develop second tier of accounting professionals. In addition, six certification courses for the members to gain specialized knowledge in various sectors will be introduced soon, he said.
ICAI had set up 120 computer labs including one in Mangalore. The state government had allotted 10 acres of land in Bangalore to set up training and development centre and a request had been made to the Dakshina Kannada district administration through the vice-president of ICAI Uttam Kumar Agarwal for land to set up a centre in Mangalore, he said.
About investment strategies, he said every person has to develop the habit of small savings. Raju regretted that today’s generation does not have the habit of savings. “Small savings are important keeping in mind the uncertain future and help during rainy days,” he said. He also suggested payment of liabilities as soon as possible and spending less than the income level.
Thanks taxguru,
Have you, by any chance analyzed how IFRS implementation will affect Income-tax computations? Such as impact of component accounting (and depreciation) on MAT.
Regards,
Gausin Hussain