Amid confusion surrounding the progressive implementation of International Financial Reporting Standards from April, 2011, industry body Assocham has suggested that companies should initially be asked to only prepare their consolidated accounts as per the new norms.
Assocham has pointed out that even in the European Union, the transition to International Financial Reporting Standards (IFRS) was gradual, with standalone accounts of individual holding companies and subsidiaries considered for tax purposes, whereas consolidated financial statements were prepared in accordance with IFRS.
“To avoid possible turbulence and maintain the deadline of 2011 for introduction of IFRS, Assocham has suggested its implementation on the lines it was done in the European Union,” the chamber said in a statement.
This option, Assocham pointed out, was accepted as adequate for claiming that the European Union has converged with IFRS.
