The International Financial Reporting Standards (IFRS) are well on their way to be implemented and will proceed according to schedule, said Mr Salman Khurshid, Minister of State for Corporate Affairs. Barring banks, insurance companies and small companies, all the other companies will have to follow the converged accounting standards with effect from April 1, 2011.
“If there are any adjustments to be made, we will make them. Banking and insurance sectors have some issues, but we are not imposing it on them right away. We have already given them a three-year time lag. There are minor issues, which we will sort out,” said Mr Khurshid. He was speaking at the sidelines of the second International Conference on Competition Law.
National Advisory Committee on Accounting Standards (NACAS) has almost finalised the drafting of the Indian Accounting Standards converged with IFRS, according to an official release.
Under the Converged Accounting Standards, the Schedule VI will have two parts- Part-A, as per existing notified accounting standards and Part-B, based on converged accounting standards. These have been finalised and recommended by NACAS.
Some stakeholders raised the issue of tax implications under the converged standards to address which, a Group had been set up by The Institute of Chartered Accountants of India (ICAI), according to the release.
The Group included nominees from the Ministry of Finance and prepared a draft report that identified options that could be adopted for tax neutrality. Mr R. Bandyopadhyay, Secretary, MCA has asked the Group to come up with a proposal that is revenue neutral and acceptable to the Ministry of Finance, while also compatible with IFRS and meeting the needs of the corporate sector.