Indian Companies geared up to adopt IFRS

Bangalore, Aug 8 (UNI) Harmonization of Indian Accounting Standards in tune with International Financial Reporting Standards (IFRS) can create big opportunities to the Indian Accounting professionals to operate globally, N P Sarda, Past President Institute of Chartered Accountants Associaiton of India (ICAI) opined today.

Speaking at the Inaugural session of at the National Conference on 'Corporate Governance and Financial Reporting Norms' organised by the ASSOCHAM here Mr Sarda said that already over 100 countries had committed themselves to converge their accounting standards on par with IFRS.

Mr Sarda said that the Indian Accounting Standard (IAS), which was formulated on the basis of International Accounting Standard and Practices in the past, needs to get such convergence in view of the opening up of the economy.

"With an open economy, funds and human resources have started moving in and out, mergers and acquisition starting taking place and become order of the day. With the fast paced changes taking place there is a need to have a re-look into the practice of the present IAS towards the convergence of International Accounting module," he said.

He said the ICAI had declared that IAS would be remodelled on par with the IFRS perspective and it would come into effect by April 2011. "ICAI has put in good effort in this direction and the next four years will be very crucial for Indian companies to adopt IFRS accounting standards", he said.

Many Indian companies listed in the International stock exchanges had already adopted the IFRS accounting standard.

However Mr Sarda made it clear that small and medium enterprises can continue with IAS procedures.

UNI