Indian Accounting Standards
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Indian Accounting Standards(Ind AS) are accounting standards issued by Institute of Chartered Accountants of India (ICAI) which are converged with International Financial Reporting Standards(IFRS)[1] . Now India will have two sets of accounting standards viz. existing Indian accounting standards and IFRS converged Indian Accounting Standards(Ind AS)[2] . NACAS recommend these standards to the Ministry of Corporate Affairs. The Ministry of Corporate Affairs has to spell out the accounting standards applicable for companies in India. As on date the Ministry of Corporate Affairs notified 35 Indian Accounting Standards(Ind AS). But it has not notified the date of implementation of the same[3] .
Convergence with IFRS
The inception of the idea of convergence of Indian GAAP with IFRS was made my the Prime Minister of India Dr. Manmohan Singh by committing in G20 to align Indian accounting standards with IFRS. Thereafter ICAI has decided to converge its Accounting Standards with IFRS for accounting periods commencing on or after 1 April 2011 in a phased manner as envisaged the the Roadmap to IFRS formulated by the Ministry of Corporate Affairs. For smooth transition to IFRS, ICAI has taken up the matter of convergence with the National Advisory Committee on Accounting Standards and various regulators such as the RBI, SEBI and IRDA, CBDT. IASB, the issuer of IFRS, is also supporting the ICAI in its endeavours towards convergence.
It has been decided that there shall be two sets of Accounting Standards under the Companies Act. The new set of standards which have been converged with IFRS are now known as Indian Accounting Standards or Ind AS. The Ministry of Corporate Affairs has notified the 35 Ind AS on 25 February 2011.[4] The text of the 35 Ind AS are now available at the Ministry of Corporate Affairs portal. [5]. At the same time The Ministry of Corporate Affairs haven't specified the date of implementation of the same. This reluctance of The Ministry of Corporate Affairs to notify the date even when the proposed date is less than a month away is seen as rooted in the strong lobbying my the Corporates in India to defer the implementation. But the president of ICAI. CA.G.Ramaswamy expects that it will be notified soon and there wont be any deferment.[6]
External Links
- http://www.livemint.com/2011/02/25220752/MCA-notifies-accounting-norms.html
- http://www.indianexpress.com/news/India-Inc-has-its-way--IFRS-put-off/755079/
- http://pib.nic.in/newsite/erelease.aspx?relid=70248
- http://www.moneycontrol.com/news/the-firm/jamil-khatris-ifrs-diary-part-10_526759.html
References
- ^ [1],IFRS converged.
- ^ [2], List of Ind AS.
- ^ http://www.mca.gov.in/Ministry/accounting_standards.html], Ind As notified by MCA.
- ^ "Govt notifies 35 accounting standards in line with IFRS". Business Standard. 25 February 2011. Retrieved 26 February 2011.
- ^ "35 Indian Accounting Standards (Ind AS)". Ministry of Corporate Affairs, Government of India. Retrieved 26 February 2011.
- ^ "Govt deferred IFRS implementation". The Economic Times. 26 February 2011. Retrieved 28 February 2011.
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