‘Uniform accountancy norms to boost growth’

Font Size

Print

Feedback

Email

Discuss

Related Articles

Taxman’s arm may reach HK, Cayman IslesAIR FM stations enjoy highest listenershipGAIL to raise 2000 cr for expansionSAIL to spend 10,000 crore in FY'10

New Delhi, Sep 5 : “Strong accountancy profession as a part of strong financial infrastructure will support trade and facilitate investment by both the private and development partners, thereby contributing to economic growth of the country”, said Amitabh Verma, joint secretary (banking) at a special session organised by Institute of Chartered Accountants of India (ICAI) on Friday.

The use of different accounting frameworks in different countries creates confusion for users of financial statements. This confusion leads to inefficiency in capital markets across the world. Therefore, increasing complexity of business transactions and globalisation of capital markets call for a single set of high quality accounting standards, he added.

“I am happy to note that ICAI has decided that IFRSs should be adopted for public interest entities, listed companies, banks and insurance companies and large sized entities”. With the increasing pace of globalisation, a need to implement a single globally accepted financial reporting system has been felt.

Convergence with IFRS is gaining momentum across the accounting world. Currently, 109 countries permit the use of IFRSs for listed companies.

ICAI has recognised the need for convergence and proposed that IFRSs should be adopted for public interest entities, listed entities, banks and insurance companies and large sized entities with effect from April 1, 2011.