Govt notifies 35 accounting standards in line with IFRS
The government on Friday notified 35 accounting standards with a view to update Indian accounting norms in line with the global audit practice IFRS.
New Delhi: The government on Friday notified 35
accounting standards with a view to update Indian accounting
norms in line with the global audit practice IFRS.
The companies, however, will be given time to adjust to
the new accounting standards as government has now deferred
the implementation of the International Financial Reporting
Standards (IFRS) beyond April 1 this year.
The standards deal with preparation of accounts,
valuation of financial assets, recognition of income and
expenditure, among others.
"We have put in place 35 accounting standards to be
followed by large companies in the first phase. Implementation
by companies will depend on how and when some issues like the
ones related to taxation are resolved or not. But the
implementation date is not April 1, 2011," a senior official
in the Ministry of Corporate Affairs (MCA) said.
The official said the implementation date will be decided
after the Union Budget 2011-12 is announced on February 28.
"We`ll have more clarity on the tax issues after the
Budget announcement. Taxation was one of the key area of
contention and we are expecting that the Finance Minister will
clear the doubts," he said.
As per the earlier road map laid out by the MCA,
companies will have to prepare their accounts as per the new
norm in a phased manner, beginning with companies that have a
networth of over Rs 1,000 crore from April 1.
Further, while scheduled commercial banks and urban
cooperative banks will adopt IFRS from April 1, 2013, all
insurance companies will convert their opening balance sheets
with IFRS from April, 2012.
Large, listed non-banking finance companies (NBFCs), will
converge their opening books of accounts with IFRS norms from
April 1, 2013.