ICAI to converge with IFRS from April 2011

New Delhi, July 22: The Institute of Chartered Accountants of India (ICAI), at its ongoing 269th meeting here, decided to fully converge with International Financial Reporting Standards (IFRSs) from April 1, 2011.

To ensure a smooth transition to the IFRSs from April 1, 2011, the ICAI will take up the matter of convergence with IFRSs with the National Advisory Committee on Accounting Standards established by the Ministry of Corporate Affairs, Government of India, and various regulators such as the Reserve Bank of India, the Insurance Regulatory and Development Authority and the Securities and Exchange Board of India.

ICAI would also formulate its work-plan to ensure that the IFRSs are effectively adopted from 1st April, 2011. The Institute will conduct IFRS-specific training programmes for its members and others concerned to prepare them to implement IFRSs. The Institute will also take up those areas in certain IFRSs where it feels that some changes may be required, keeping in view the Indian conditions.

The IFRSs issued by the International Accounting Standards Board will be adopted for the listed entities and other public interest entities such as banks, insurance companies and large-sized entities like those in countries such as Australia, New Zealand and the European Union.

The decision is an important milestone in achieving full-convergence with IFRSs as India will join 102 countries which presently require or permit use of IFRSs in preparation of financial statements in their countries. By 2011, the number is expected to reach 150.

UNI