The finance minister in his budget speech recognised the urgent need to converge the existing notified standards under Indian GAAP with the IFRS. Towards this objective, he proposed to make Indian Accounting Standards converged with IFRS (‘Ind AS’) mandatory for Indian companies from the financial year 2016-17, with the option to voluntarily adopt them from the financial year 2015-16.
The date of implementation of Ind AS for banks and insurance companies will benotified separately by the respective regulators.
As a part of implementation of this budget announcement, the Accounting Standards Board of the Institute of Chartered Accountants of India (ICAI) has released two exposure drafts dealing with ‘Amendments to Indian Accounting Standards (Ind AS) – consideration of carve outs/ins’. Through these exposure drafts the ICAI is trying to reduce the differences between Ind AS and IFRS, and substantially reduce the carve-outs. However, at the same time, the ICAI is also assessing the need of any further possible carve-outs considering various new developments under IFRS. The ICAI has also included in these exposure drafts additional areas where it has removed policy choices to enhance comparability and certain other areas where it provides additional guidance. The ICAI has released these exposure drafts for public comments. The last date of comments is 15 October 2014.
To access the text of these ‘exposure drafts’ please click on the following links below:
This edition of IFRS Notes summarises these exposure drafts issued by the ICAI.
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