Govt tells firms to gear up for IFRS

Written by Neha Pal | New Delhi | Updated: Sep 26 2009, 05:20am hrs
With the date for the convergence to international financial reporting standards (IFRS) coming closer, the ministry of corporate affairs has said that it is high time for companies to start preparing for the conversion process. To start with, bigger companies should start following the conversion procedure which can be later followed by the smaller companies, corporate affairs minister, Salman Khurshid said.

Khurshid told FE, listed companies and public interest entities in the country are required to transit from the Indian accounting standards to IFRS by April 1, 2011 and for that companies will have to start preparing their accounts in that format from 2010 onwards. Some of the companies who have already begun the process of aligning their accounting standards with IFRS include firms like Infosys Technologies, NIIT, Wipro, Mahindra & Mahindra, Tata Motors, Bombay Dyeing, Dr Reddy's Laboratories.

The high-powered core group on IFRS constituted by the ministry of corporate affairs has also decided to speed up the process by engaging more stakeholders in this process. The core group has even discussed the implementation challenges with regards to convergence with IFRS and has expressed confidence in the issuance of the road map at an early date for convergence to enable adherence to target date of 2011.

On the other hand, the accounting regulator, Institute of Chartered Accountants of India (ICAI) has also said that their convergence project to IFRS is at an advanced stage of completion. ICAI had recently presented the details of a comprehensive capacity building programme which the institute is carrying on to prepare the CA profession for this transition and stated that a large number of professionals have undergone training and the process is being accelerated. Apart from the regulatory bodies, even agencies are helping companies to transit to the new standard.