Get updated on IFRS
Welcome to the first issue of theinitiative taken by
.If you are new to IFRS, this is aPerfect place to startUnderstanding the changesHappening in our country.If you are already involved in theConvergence of IFRS, this is aPlace of great resource for you.
Volume 1 – November ‘09
The Countdown Begins…….
Come 2011 and Indian Inc will experience a drastic changes in the way financialstatements are reported. India is among 150 – odd countries that have decided to adoptthe International Financial Reporting Standards (IFRS) in 2011.However, the question remains : Is Corporate India ready to joins the ranks of EU,Australia, Singapore and Sri Lanka, which are among the 100 IFRS- compliant countries?IFRS compliance would require changes right from the grassroots level, beginning withacademic inputs and training. And this is not going to be an easy task, given the limitedtime frame before the new standards come into force.“The transition will be a tough challenge for the country as it requires a shift in theacademic approach, along with regulatory challenges. The Institute of CharteredAccountants of India (ICAI) and the government will have to play a larger role incountering industry problems,” said Vijay Mathur, partner, BSR & Co., the Indian arm of KPMG.He was addressing a technical conference on IFRS, organized by the Confederation of Indian Industries (CII), in association with KPMG India on Thursday. He added that themajor problem that industries are likely to face is a talent crunch since, even in thecurrent scenario, there is a scarcity of qualified resources.“Companies need to start following a planned strategy as early as possible, as the failureto do so would put them in an awkward situation. The understanding and implementationof IFRS is not easy, and only if companies start following certain common standards now,would they be able to shift towards the new standards from 2011,” said Neville Dumsia,executive director, private equity advisory, KPMG India.He said India has begun integrating with global financial markets. When companies arecrossing national boundaries, reporting financial statements under IFRS is a necessary tofacilitate cross-border transactions and makes comparisons easier, he added.“There is a need to give accounting staff appropriate training. Companies need to drawup detailed plans for migrating to IFRS as early as possible, to make the transitionsmooth and flawless,” he said.Accounting teams should be conversant not only with new standards but also withinformation technology to support the new financial reporting architecture, Mathur said.IFRS, previously known as International Accounting Standards (IAS), are standards andinterpretations adopted by the International Accounting Standards Board (IASB). IASBadopted IAS in April 2001, and renamed it IFRS.
. . . .
Monthly E – News Letter Monthly E – News Letter