Making clear its commitment to converge Indian accounting norms with International Financial Reporting Standards (IFRS) by 2011, the government on Wednesday said all concerns of the industry would be addressed before convergence takes place. “We stand by our commitment to converge the Indian accounting norms with the IFRS and have synchronised the views of all stakeholders,” corporate affairs ministry secretary R Bandyopadhay said at a CII event.
However, the industry fears that there are ambiguous issues which demand more clarity. Many regulations like the I-Tax Act and the RBI Act have to be amended for converging with the IFRS but so far no progress has been made in the direction. Similarly, sectors like banking and insurance are also in a fix as to the impact the convergence will have on their toplines and bottomlines. The industry also fears that there is not enough preparedness in terms of training as far as IFRS is concerned. The Institute of Chartered Accountants of India has still not legally notified the syllabus containing IFRS and the tax implications of the convergence are still not known.