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Corporate India may get more time to prepare itself for the adoption of the Indian version of international financial reporting standards (IFRS) popularly known as Ind AS.
The Institute of Chartered Accountants of India has decided to suggest to the Government that Ind AS be implemented from April 1, 2013 and not April 1, 2011 as planned earlier.
The Centre is yet to notify the date from which Ind AS should be implemented although the accounting standards are ready and published on the website of the Corporate Affairs Ministry.
“Our central council has taken a decision to suggest to the Corporate Affairs Ministry that Ind AS be implemented from April 1, 2013,’’ Mr G. Ramaswamy, ICAI President, told Business Line here.
Any such suggestion should not be seen as one seeking deferment of IFRS implementation, sources in the CA institute said.
With the International Accounting Standard (IASB) revising six existing IFRS and issuing four new ones, which are likely to come into effect from January 1, 2013, the CA institute wants the proposed Ind AS to be changed in line with the revised global IFRS before implementing them.
If the Centre were to notify Ind AS implementation prior to January 2013, say April 1, 2012, it will place companies under hardship as they have to adjust their procedures again in the subsequent year when the revised global IFRS comes into force, the sources said.
This hardship can be avoided if the entire set of Ind AS is implemented from April 1, 2013. By that time, the CA institute expects to revise the existing Ind AS in line with the revised IFRS.
India is looking to converge its accounting standards with IFRS and not adopt the global standards. There will be some differences between the global IFRS and the Indian version if the proposed Ind AS were to be implemented..
If the Corporate Affairs Ministry and the CA institute were to agree on setting April 1, 2013 as the launch date, then the time available from now and till April 2013 should be used to bridge the gap between Indian IFRS (Ind AS) and the global version, Mr Jamil Khatri, Head of Accounting Advisory Services, KPMG in India, said.
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