This issue of our IFRS Notes provides a high level analysis of the much awaited Indian Accounting Standards (Ind AS) that are converged with International Financial Reporting Standards (IFRS), which was finally notified by the Ministry of Corporate Affairs last week.
The notification of these IFRS converged standards fills up significant gaps
that exist in the current accounting guidance, and India can now claim to have financial reporting standards that are contemporary and virtually on par with the best global standards. This will in turn improve India’s place in global
rankings on corporate governance and transparency in financial reporting.
With the new Government at the Centre, there has been a flurry of activities which started off by the announcement in the Finance Minister’s budget speech last year of an urgent need to converge with IFRS, which has now culminated with the notification of 39 Ind AS standards together with the implementation roadmap. With this notification, coupled with the progress made on finalising the Income Computation and Disclosure Standards (ICDS), the government has potentially addressed several hurdles which possibly led to deferment of Ind AS implementation in 2011.
Companies should make an impact assessment and engage with all stakeholders, both internal and external, to deal with their respective areas of impact and ensure a smooth transition.
To access the text of the MCA notification, please click Ind AS notified by the MCA.
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