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The former Chairman of the SEBI, Mr C.B. Bhave, has been appointed trustee of the International Financial Reporting Standards (IFRS) foundation with immediate effect.
His tenor as trustee will expire on December 31, 2014, and his term can be renewed once.
Trustees are appointed with the approval of the IFRS Foundation Board.
IFRS constitutes a set of financial reporting standards developed by the International Accounting Standards Board — a non-profit organisation as a uniform set of standards for reporting financials of companies.
Close to 120 countries around the world either require or permit the use of IFRS.
India was expected to migrate to IFRS by April 1, 2011, but the migration was delayed by one year due to issues related to enactment of the Direct Taxes Code (DTC) Bill. The DTC is expected to be implemented from April 2012 onwards.
Migration process
The first year would see the companies in the Nifty-50, the Sensex-30, companies listed outside India, and those with a net worth greater than Rs 1,000 crore migrating to IFRS.
Insurance companies are expected to migrate to IFRS in the second year; and banks and companies with a net worth above Rs 500 crore and upto Rs 1000 crore in the third year.
By the end of the fourth year, all companies are expected to become IFRS compliant.
The major challenges faced by companies for migration to IFRS entails investments in up gradation of IT systems and training manpower.
> raghavendrarao.k@thehindu.co.in
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