The CA Institute is keen that banks adopt International Financial Reporting Standards (IFRS) — a set of globally recognised accounting standards — to prepare their financial statements.
The accounting regulator has now recommended what it terms as a roadmap for IFRS implementation by banks. The recommendation follows a request from the banking regulator, Reserve Bank of India.
“The fact that we have given a roadmap should be a sufficient pointer to you that we are in favour of banks adopting IFRS”, Subodh Agrawal, CA Institute President, said here on Tuesday.
Agrawal later clarified that a specific date (not earlier than April 1, 2015) has been recommended to the RBI for ushering in IFRS adoption by banks. He, however, declined to spell out the exact timeline, stating that it was for the RBI to take the final call.
For non-banking finance companies (NBFCs), the Institute recommended a three-year roadmap linked to their net worth, he said.
For Indian companies (non-financial ones), the Institute has already recommended to the Corporate Affairs Ministry an IFRS roadmap beginning April 1, 2015.
This roadmap was also linked to the net worth of companies.
In the case of the insurance sector, there has been no request from the insurance regulator, IRDA, as yet, Agrawal said. > srivats.kr@thehindu.co.in