The Hindu Business Line : Panel not for making AS 11 mandatory till 2011

NEW DELHI: Amid India Inc lobbying hard for relaxation of the mandatory provisioning for forex losses and gains on the basis of market value of their financial assets in these times of volatility, a government advisory panel has suggested that it should not be enforced till 2011.

The country plans to converge to international accounting norms - IFRS by 2011 - after which corporates will have to comply with them.

According to sources, the National Advisory Committee on Accounting Standard (NACAS) has proposed that Accounting Standard (AS) 11, which mandates mark-to-market (MTM) provisioning in the profit and loss account for foreign exchange-related gains and los ses, should not be imposed on the firms till 2011.

However, the ICAI has a different view on the subject. According to the ICAI President Mr Uttam Prakash Agarwal, “We are not interested in going for any changes in the regulation because we want consistency and prudence. Our council has a totally differe nt view on it.”

The proposal comes in midst of a controversy between industry and accounting body ICAI, which has been constantly demanding strict compliance with the provision by the companies. – PTI

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