The National Advisory Committee on Accounting Standards (NACAS) has not recommend ed any voluntary adoption of new revenue standard—Ind AS 115—by companies in India even as it has made a case for its deferral, its Chairman Amarjit Chopra said.
"Our recommendations have been sent to Corporate Affairs Ministry (MCA). We have suggested deferral of implementation of Ind AS 115 without specifying a new date. We have also not recommended any voluntary adoption for companies in India", Chopra told Business Line here on Friday.
It is now for the MCA to take a final call on the deferral and also whether the voluntary early adoption facility needs to be provided for companies in India, he said.
The International Accounting Standards Board (IASB) had while deferring implementation of IFRS 15 (equivalent of Ind AS 115) to January 1, 2018 allowed voluntary early adoption.
Chopra also said that the CA Institute will now work towards introducing the International Accounting Standards (IAS) 18, 11 with its related interpretations for the interim period, post the MCA’s final decision on the extent of deferral.
He also made it clear that India was not looking to re-assess the applicability of Ind –AS 109 (financial instruments) ahead of the world in light of the proposed deferral of Ind AS 115 (IFRS 15 equivalent)
India is looking to implement Ind AS 109 from April 1 next year even as IFRS 9 (equivalent of Ind AS 109) will be applicable globally from financial years starting on or after January 1, 2018.
Some experts on International Financial Reporting Standards (IFRS) feel that the Government should consider providing the facility of voluntary adoption of Ind AS 115 (new revenue standard) even if opts for a deferral of its implementation date.
Vishal Seth, Managing Director and National Leader IFRS and Financial Reporting Advisory, Protiviti India, a global consulting firm, said that MCA should consider allowing voluntary adoption of Ind AS 115.
He said that several companies abroad especially in the United Arab Emirates have started adopting IFRS 15 voluntarily.
Seth said that the deferral recommendation for Ind AS 115 would be a temporary relief for Indian companies.
There are many companies who have already taken significant efforts to migrate to Ind AS 115 and they would now have to unwind earlier analysis.
In case a voluntary early adoption is not allowed, it will take significant effort for them to unwind, Seth added.
Srivats.kr@thehindu.co.in