A Group for identifying direct tax issues arising from convergence of Indian Accounting Standards (IAS) with International Financial Reporting Standards (Ind AS) was constituted by the ICAI, which comprised both of members of the Council of the Institute and of the CBDT.
Thereafter, the said Group decided to form two sub-groups as follows:
(1) A sub-group under the Chairmanship of CA Mahesh P Sarda, Chairman, International Taxation Committee, ICAI to study the status of tax provisions in other countries where IFRS has already been implemented.
(2) Another sub group under the Chairmanship of CA Jayant Gokhale, Chairman, Direct Taxes Committee to study the specific differences arising out of IFRS implementation, in each of the Accounting Standard with respect to the tax laws.
On the basis of suggestions received from both the sub-groups some major tax issues arising out of convergence with IFRS were identified in form of Position paper. Suggestions were also received from NACAS & senior government officials. These views have been suitably incorporated in the position paper which was duly considered by the group. The Position Paper is to be submitted to the Ministry to assist the concerned ministries in policy formulation. It is hoped that this position paper would help to put in place the regulatory framework for facilitating the entire process of convergence of Indian Accounting Standards with IFRS in accordance with the timelines laid down by the Government.