Indian accounting standards to be brought on par with world norms

Kochi, Sep 7 (UNI) The Institute of Chartered Accountants of India (ICAI) has decided to fully converge with the International Financial Reporting Standards (IFRSs) of the International Accounting Standards Board (IASB) from April one, 2011, Institute Vice-President Ved Kumar Jain said today.

Addressing a press conference here, Mr Jain said the IFRSs will be adopted for listed companies and other public interest entities such as banks, insurance companies and large-sized entities.

''This will be an important milestone as India will be joining 102 countries which presently require or permit use of IFRSs in preparation of financial statements. By 2011, the number is expected to reach 150,'' Mr Jain said.

To ensure smooth transition to the IFRSs, the ICAI will take up the matter with the National Advisory Committee on Accounting Standards set up by the Ministry of Corporate Affairs and various regulators such as the RBI, IRDA and SEBI.

He said the ICAI was prepared to face competition from foreign accountancy firms. However, the entry of foreign firms should be on an equitable basis with Indian CAs being allowed to practice abroad.

''The matter is under discussion at the WTO. We are ready to face competition, but at par,'' he added.

Mr Jain said the ICAI had taken several steps in recent months, including the adoption of a distinct logo and a dress code, to enhance the brand image of the profession.

It was also planning to set up 150 computer labs across the country to equip CAs with adequate IT skills. A three-month residential training course was also being planned to enhance the communication and other soft skills of CAs, he said.

Denying that CAs helped clients in ''tax evasion'', Mr Jain said tax planning could not be termed as tax evasion. The present tax rates in India were quite moderate as compared to other countries, he added.

On the entry of retail giants in the country, on which the ICAI Ernakulam branch organised a day-long seminar today, Mr Jain said it was too early to assess the probable impact.

''India is a unique country and foreign models cannot be duplicated here. I feel that only 15 to 20 per cent of the retail business would go in the hands of the big companies and the major chunk would remain with the smaller retailers,'' he added.

UNI