An ordinance to notify IFRS is likely to be promulgated by early next month. Sources tell us that IFRS convergence standards, what will now be called IndAS have been vetted by the ministry of law. Infact the changes which need to be made to the companies act for IFRS convergence have also been approved by the law ministry.
We are picking up that these new standards will be notified under the Companies Act 1956. As you probably know these are based on the concepts of fair valuation and time value of money. These two concepts have been used in India for the purpose of financial decision making, but are very new for purposes of accounting.
What we have also learnt is that now all companies whether they are listed or unlisted will have to prepare consolidated financial statements for the purpose of being more investor friendly as is required by IFRS. But the dividends and the tax liabilities will be computed on the basis of financial statements prepared as per Indian GAAP which practically means that the companies will have to prepare two sets of accounts.