ICAI task force to go into IFRS convergence issues

By Staff
|
Google Oneindia News

New Delhi, Feb 13 (UNI) With increasing globalisation of the economy, India is contemplating convergence of national accounting standards with the International Financial Reporting Standards (IFRS).

Institute of Chartered Accountants of India (ICAI) President Sunil Talati told newspersons here today that a task force had been set up to go into the issues requiring reconciling of the national accounting principles with the widely-prevailing IFRS.

The task force comprises ICAI Council members, representatives of regulatory authorities such as the Stock Exchange Board of India (SEBI) and Reserve Bank of India.

"So far, 102 countries have adopted the IFRS set by the International Accounting Standard Board (IASB). Within the next 2-3 years, 150 countries will follow the international standards," Sir David Tweedie, Chairman of the Lonbdon-based IASB said.

The European Union accepted the international accounting norms on January 1, 2007, China will follow suit by 2007-end. The IASB is working with the United States to quit the US GAAP system and come on board by 2009.

An independent, privately funded accounting standard setting body, the IASB is committed to developing a uniform set of high quality, enforceable gloabl accounting standards that require transparent and comparable information in general purpose financil statements.

For Indian companies, convergence would help them in accessing loans at easier terms, raise money from the capital market from pension funds which are highly risk-averse rather than the hedge funds from abroad.

Warning against the dangers of being left out, Infosys Mohandas Pai said categorically, "IFRS would definitely benefit Indian companies. As the second fastest growing economy, such a step assumes significance at this point." Mr Pai said there was a general consensus among the companies and institutions that "we have to have the IFRS". "India is working with IASB and the Government is very positive as it wants Indian companies to be globally competitive," he added.

With companies spreading all over the world, a uniform accounting system will help the nervous investor who wishes to pump money in to India but is nervous of going astray due to a lack of understanding of the Indian system of accounting, Sir David said. Stating that the differences were not major and could be ironed out, Earlier, Sir David, who is on a brief visit to India, along with a delegation of IASB including Mr Warren McGreger, Director, IASB, called on Union Company Affairs Minister Prem Chand Gupta, and briefed him on this matter.

UNI

For Daily Alerts
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
X