Indian companies geared up to adopt IFRS

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

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

Mr Sarda said 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 acquisitions have become the order of the day. With fast paced changes taking place, there is a need to take a relook at the practice of the present IAS towards convergence of International Accounting module,'' he said.

Mr Sarda 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 added.

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

However, he made it clear that small and medium enterprises could continue with IAS procedures.

UNI