India and Japan have signed a historic Memorandum of Understanding (MOU) on IFRS. It was signed in Japan between the Core Group on IFRS constituted by the Ministry of Corporate Affairs and the IFRS Council, Japan in the presence of Shri R. Bandhyopadhyay, Secretary, Ministry of Corporate Affairs. Shri Amarjit Chopra, President, ICAI, and Shri Noriaki Shimazaki, Chairman of the International Affairs Committee of the IFRS Council of Japan signed this MOU. An India-Japan Forum 2010 has also been formally inaugurated.
With India already treading a path to convergence with IFRS in a phased manner; and Japan also having started the thought process for mandatory application of IFRS; which is to be determined around 2012 (in case of Japan), the coming together of two leading Asian economies for taking leadership role in the region assumes a great significance. It dwells on exchange of views on legal and regulatory issues at either end while moving to IFRS regime and in process address capacity building issues through knowledge and information sharing. The two sides will address critical issues arising in application of or convergence to IFRS through process of mutual consultation and through the India-Japan Forum raise such issues at appropriate international forums.
Addressing the India-Japan Forum today Shri R. Bandyopadhyay focused on integration of world economies and, therefore, continuous evolution of measures for sustaining and enhancing the levels of transparency and fairness as the need of the hour. He added that Indian government has endeavored to evolve IFRS convergence through process of consultation with concerned stakeholders; preparing companies and professionals in the process through capacity building and training of professionals; to which direction Core Group on IFRS is striving to work upon.
Addressing the Forum Shri Kouhei Ohtsuka, Japan’s Senior Vice-Minister of Cabinet office for Financial Services lauded the joint initiative of India and Japan on IFRS. Referring to India and Japan also being part of G-20 and the fact that the two nations have put great reliance on disclosure system of Corporate Performance, he said that their coming together augurs well for the Trade and Industry.