Education

Carry forward of legislation

M. V. Kali Prasad | Updated on November 14, 2017

ICAI has requested the Government to postpone the date for commencement of IFRS compliance to the next financial year. International Financial Reporting Standards (IFRS), sought to bring in uniformity in financial reporting globally.



International Financial Reporting Standards (IFRS), sought to bring in uniformity in financial reporting globally.

This would facilitate the global investors to understand statements in a better manner. Compliance with IFRS by the Indian Industry has been in the air for quite a few years.

IFRS COMPLIANCE

All of Europe has already gone in for mandatory compliance of IFRS, and the US is on the way. India Inc was to do it in three phases. All the NIFTY Companies, SENSEX Companies and those with a turnover of more than Rs 1000 crore were to conform to IFRS with effect from the financial year commencing from April 1, 2011.

Much hype was created regarding this by the professional bodies, training institutes, and academic institutions.

There were several seminars, short-term courses, training sessions, etc., on IFRS, to educate both the industry and the professionals, so that the implications of IFRS could be clarified. Authors have published bulky books on these standards, giving their analyses and commentaries.

E-learning of IFRS was initiated by a few tech-savvy business houses. All of them earned substantial moolah during a period of time.

Last year, the date was postponed by one year, to take effect from April 1, 2012. Recently, the ICAI has recommended to the Central Government to postpone the date to commence from the next financial year, commencing from April 1, 2013. Thus, it has been put on hold for the time being. This, however, doesn't come as a surprise.

There are several legislations in the queue, which are being carried forward year after year.

LEGISLATION ON HOLD

We have been hearing of the Company Law Amendment Bill, Direct Tax Code, GST, to name a few. They have been getting postponed Budget after Budget, and year after year.

Direct Taxes Code: This was mooted more than three years go by the Ministry of Finance. There have been several seminars, conferences, talk shows, etc on the subject. Budget after Budget it is being postponed. The code is yet to take shape. Once this code is in place, the entire tax structure is set for a sea change.

Revision of Company Law: There has been a move to comprehensively revise Company Law for quite some time. No major step is taken in this direction though.

The existing Companies Act, 1956, was enacted before some of the parliamentarians were even born.

The scene has changed quite a lot since then.

The lawmakers have decided to thoroughly revise it, but the final word is yet to be given on that.

GST: Goods and Services Tax has been a favourite subject of Chidambaram when he was holding the portfolio of finance. He used to mention GST in his Budget speech.

Pranab Mukherjee has presented three budgets after that. The matter still remains a work in progress.

By now, it is quite possible that the persons who have spent thousands of rupees trying to update themselves with the impending laws have almost forgotten the subject, and the books are picking up dust.

The CD provided might have been corrupted. The trainers might as well think of refresher courses on these topics.

Published on March 18, 2012

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