International Financial Reporting Standard (IFRS) is an international accounting standard prevailing in more than 137 countries. India is committed as a member country for convergence of IAS with IFRS. A meeting of the Core Group constituted by the Ministry of Corporate Affairs, Govt of India for convergence of Indian Accounting Standards with International Financial Reporting Standards (IFRS) from the year 2011 was held on 11th January, 2010 under the chairmanship Shri R. Bandyopadhyay, Secretary, Ministry of Corporate Affairs. The meeting was attended by the officials from Ministry of Finance, SEBI, RBI, IRDA, C&AG, PFRDA, ICAI, Industry representatives and other experts. This made the beginning of a consensus among participating regulators to agree upon a common agenda towards convergence of accounting standards.
Ministry of Company Affairs (MCA) have issued the revised Schedule VI on 28 February 2011 which is applicable to financial statements prepared after 01 /04/2011 in a phased manner covering all listed companies by 01/04/2014. But the Ind AS were not notified, as per the Press Release issued by the MCA, primarily due to tax implications. Since then the Parliament has passed the new Companies Act, 2013, which is in the process of notification by the MCA. The new Act has introduced various new provisions, including requirement to prepare Consolidated Financial Statements, which would facilitate implementation of Ind AS converged with IFRS. And at last, The implementation of IFRS has been charted as from April 1st, 2016 for all the public sector companies and April 1st, 2017 for all private sector companies.
Given this background, the beginners need to update themselves about inculcating a culture to get the true perspectives on the reporting standards globally. This reading material envisages to bring forth some prominent aspects of the IFRS, Ind AS and the US GAAP . Though care has been taken to give an overall view of the changes taking place, this material is not intended to replace the original text on these and other relevant standards or statutes referred.
Ministry of Company Affairs (MCA) have issued the revised Schedule VI on 28 February 2011 which is applicable to financial statements prepared after 01 /04/2011 in a phased manner covering all listed companies by 01/04/2014. But the Ind AS were not notified, as per the Press Release issued by the MCA, primarily due to tax implications. Since then the Parliament has passed the new Companies Act, 2013, which is in the process of notification by the MCA. The new Act has introduced various new provisions, including requirement to prepare Consolidated Financial Statements, which would facilitate implementation of Ind AS converged with IFRS. And at last, The implementation of IFRS has been charted as from April 1st, 2016 for all the public sector companies and April 1st, 2017 for all private sector companies.
Given this background, the beginners need to update themselves about inculcating a culture to get the true perspectives on the reporting standards globally. This reading material envisages to bring forth some prominent aspects of the IFRS, Ind AS and the US GAAP . Though care has been taken to give an overall view of the changes taking place, this material is not intended to replace the original text on these and other relevant standards or statutes referred.
