The Hindu Business Line : Satyam adopts global accounting norms ahead of deadline

Hyderabad, May 10 IT services provider Satyam Computer has become the first Indian company to adopt the International Financial Reporting System (IFRS), exactly three years ahead of the proposed move to implement this globally accepted accounting standard.

“This is significant for us as we are the first in the country to adopt to this in partnership with consultants PricewaterhouseCoopers and have announced the fiscal 2008 results in IFRS along with Indian and US GAAP norms,” Mr V. Srinivas, Chief Financial Officer of Satyam Computer, said.

“To report under IFRS norms for fiscal 2008 means we have already reconciled financial results of the company for three consecutive pervious financial years—2005-06, 2006-07 and 2007-08,” Mr. Srinivas said.

Listed in India, New York Stock Exchange and Euronext, Satyam Computers worked on Indian and US GAAP, the latter for nearly 10 years now, and hence the transition to IFRS was a relatively smooth affair, he said.

Assessment of fair value, consolidation of subsidiaries and businesses when mergers and acquisitions take place are among key differentiating factors here, he explained.

So was this triggered by the company move to list on Euronext? Mr Srinivas said “it was not mandatory. But we felt we should go ahead as this would make it easier for investors in Europe accustomed to IFRS.”

Of the 142 countries, 108 have mandated or permitted IFRS reporting, others are in the process of converging.

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Satyam adopts global accounting norms ahead of deadline