Bangalore, Aug 22: India adopting the International Financial Reporting Standards (IFRS) can not only ensure justice to investors but also bring huge opportunity for the country to emerge as a dominating force in the new accounting standard, experts today claimed.
IFRS are standards and interpretations adopted by International Accounting Standards Board (IASB). Regulators in India have set a 2011 deadline to adopt the system.
The new accounting standard, adopted by more than 100 countries, replaced the International Accounting Standards (IAS) after 2001. It is based on understandability, relevance, reliability and comparability.
Speaking at a CII discussion on 'IFRS: The roadmap to Transition' Sify Chief Financial Officer M P Vijay Kumar said IFRS can bring great benefits similar to the BPO revolution to the country as India could dominate the world to become its accounting back office by championing the new system.
''IFRS also enables companies become more transparent in disclosure. In Indian system, though somewhat similar to IFRS,' disclosures is recommendatory, IFRS is more forthcoming.
''This is the least we could do to the investors. We owe them this much as they are responsible for our existence,'' he said.
He said Prime Minister Manmohan Singh had stated convergence into IFRS had to happen.
It was better Indian companies transit earlier than the 2011 deadline to make things easy for its financial team. The Institute of Chartered Accountants India was also moving in the right direction to facilitate the transition.
The path for convergence had already been set with several top notch companies adopting the new system, he said.