The CA institute has recommended a new roadmap for adopting International Financial Reporting Standards by Indian companies, according to its newly elected President, Subodh Kumar Agrawal, who assumed office on Tuesday.
If accepted by the Corporate Affairs Ministry, companies with a net worth of over Rs 1,000 crore will have to adopt International Financial Reporting Standards (IFRS) from April 1, 2015 for preparing their financial statements.
For companies with net worth of Rs 500-1,000 crore, the recommended date is April 1, 2016, Agrawal said. For all other companies (including listed ones), the recommended date is April 1, 2017.
Agrawal made it clear that the new IFRS roadmap does not cover banks and insurance companies. It is for the respective sectoral regulators — Reserve Bank of India and Insurance Regulatory and Development Authority — to decide the date of IFRS enforcement, he said.
The Government was earlier looking to enforce IFRS from April 1, 2011. But this was not implemented.
On its part, the CA institute has already prepared Indian accounting standards (Ind AS) that converged with IFRS.
“We are ready even today to implement it (IFRS). But since the international accounting standards board is expected to come up with new standards on important areas like leasing, financial instruments, we don’t want our corporates to face hardships. So we have suggested that IFRS may be adopted from April 1, 2015,” a CA institute official said.
Agrawal said the RBI had convened a meeting next week with the top brass of the CA institute to discuss IFRS related issues for the banking sector.
The Institute of Chartered Accountants of India on Tuesday elected Subodh Kumar Agrawal as its President and K .Raghu as Vice- President for 2013-14.