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The suspense on when the newly drafted Indian Accounting Standards, known as Ind-AS, will come into force may soon be over.
A high-level core committee, comprising representatives of various regulators — Reserve Bank of India, Securities and Exchange Board of India, Insurance Regulatory and Development Authority and the Corporate Affairs Ministry — will meet on August 23 to decide the roadmap for Ind-AS implementation, said Renuka Kumar, Joint Secretary in the Ministry of Corporate Affairs.
The core committee’s recommendations will be forwarded to Corporate Affairs Minister Sachin Pilot, who will take a final call on the implementation date, she added.
Ind-AS are a set of accounting standards framed by India to converge itself with the International Financial Reporting Standards (IFRS), a set of globally recognised accounting standards.
The newly drafted Indian accounting standards are almost in alignment with IFRS, except for a few carve outs.
India has been looking to converge with IFRS from April 2011. But thanks to lobbying by India Inc, the Government and regulators had dithered on any decision on this matter.
This issue is now before the core committee.
As for banks, the RBI had recently written to the Corporate Affairs Ministry that, as the banking regulator, it would like to decide on Ind-AS (IFRS) roadmap for banks.
Indications are that IRDA may on its own decide on the roadmap for IFRS implementation in respect of insurance companies.
The Corporate Affairs Ministry had asked the chartered accountants institute to come up with a new roadmap for convergence of Indian accounting standards with IFRS. The institute had recommended that companies with a net worth of over Rs 1,000 crore should be asked to adopt IFRS from April 1, 2015, for preparing their financial statements.
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