The Hindu Business Line : ‘Adopt global financial reporting standards totally’

Our Bureau Kolkata, Aug. 5 The transition to International Financial Reporting Standards (IFRS) for Indian companies has to be made by adopting global standards fully, instead of converging in bits and pieces, Mr N. Ramesh Rajan, Chairman, PricewaterhouseCoopers (PWC), said here on Tuesday.

All public listed companies and other public interest entities in India are required to adopt IFRS, along with over 100 other countries, by 2011 to harmonise with global financial reporting standards.

Speaking on the sidelines of an event to announce a training tie-up with Indian Institute of Management, Calcutta, Mr Rajan said, “It is essential for an Indian company to converge to IFRS totally in order to succeed in a globally competitive world.”

If the standard is partially adopted by safeguarding local practices, the “larger purpose would be lost”, said Mr Kaushik Dutta, Partner, PWC.

Of the 31 standards of Generally Accepted Accounting Principles practised in India, only two satisfy IFRS, 10 need regulatory or legal amendments while 19 need to be modified partially to be applied for IFRS, Mr Dutta said.

PWC entered into a memorandum of understanding with IIM-C to train professionals in IFRS. While a 5-day course would be started from November, a course of longer duration could be introduced next year, said Mr Saibal Chattopadhyay, Dean (Programme and Initiatives) IIM-C.

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