it will facilitate companies to set targets and milestones based on a global business environment rather than an inward perspective. Furthermore. there will be two set of Accounting Standards – 1. The conversion would involve. Approximately 92 of those countries require IFRS reporting for all domestic listed companies. Malaysia. including all of Europe. Indian Accounting Standards. Singapore and Turkey. including the European Union. As in December 2013 more than 110 countries around the world.UK (2005) Canada (2011) India (2016) USA (2016) Japan (2016) 3. By introducing a new company law. Ind-AS and the corresponding IFRSs – conversion process would need careful handling. The date of implementation of the Ind-AS is expected to be with effect from Financial Year 2016-17. India being one of the key global players. has gained momentum all over the world. by various group entities. Russia. will enable management to bring all components of the group into a single financial reporting platform. It will lower the cost of raising funds. How the world is converging into IFRS IFRS is used in many parts of the world. This will eliminate the need for multiple reports and significant adjustment for preparing consolidated financial statements or filing financial statements in different stock exchanges. There are conceptual differences between AS and IFRS. Australia. migration to IFRS will enable Indian entities to have access to international capital markets without having to go through the cumbersome conversion and filing process.The existing Indian Accounting Standards (AS) – will be applicable to all companies which are not required to adopt IFRS converged standards. reduce accountants’ fees and enable faster access to all major capital markets. As the capital markets become increasingly global in nature. Why IFRS International Financial Reporting Standards (IFRS) convergence. Timeline for Convergence (major countries) Europe.AS or IFRS.1. India and IFRS In India. as converged with IFRS (Ind-AS) – will be applicable to companies operating in India in phased manner. convergence to IFRS. Keeping in view the extent of gap between AS. 2. currently require or permit IFRS reporting. more and more investors see the need for a common set of accounting standards. Hong Kong. Pakistan. the Indian Government has initiated the process to amend the legal and regulatory framework. 2. in recent years. GCC countries. South Africa. . Furthermore. Impact Assessment. Revisiting Accounting Policies and thereafter changing the Accounting & Operational Systems (including ERP) in order to be fully compliant with Ind .

Basis IFRS AS Principle vs Rule based standards Principle based. Any of the direct or indirect method can be used. Valuations Provides specific guidance and Positions taken under IAS are standards to deal with mergers. Mandatory for some. take over. no prescribed format. More traditional and insulated from changing economic scenario. Standards vs Local laws Accounting standards take precedence over local laws. Assets and liabilities need to be divided into current and non-current. The impact of the change is disclosed. A more historical perspective. The effect of change is included in current year income statement. debatable. Depreciation on fixed assets Depreciation is an annual charge on basis of estimated life of assets. Companies Act and other industry regulations have defined prescribed formats. Cash flow statements Mandatory. Change in accounting policy and estimates Comparatives are restated unless specifically exempted where the effect of period(s) not presented is adjusted against opening retained earnings. IFRS specifies the financial reporting in hyper inflationary economies. Presentation of financial statements Primarily. Companies act and rules dominate and guide as to how a transaction is recorded. insurance contracts and disclosure of financial instruments. amalgamations etc specifically as regards to valuation Adoption methodology` IFRS 1 spells out the methodology and systems to be adopted for first time adoption of IFRS. . Local regulations usually take precedence while preparing financial statements. Direct method for insurance companies and indirect method for other listed companies. Generally rule based. acquisitions. Whenever there is between law standard. agriculture. the law prevails. Also has a specific standard for retirement benefit plans. Useful lives have been prescribed in Schedule II of the Indian Company’s Act. Economic substance of the transaction is the prime evaluation factor.

Corporate Impacted by IFRS in India In the initial phase. ASA . an international association of independent accounting firms. in turn. We follow template based approach in order to fast track the process of conversion. d) Accounting Support: The conversion process would lead to additional work in relation to accounting or reconciliation. Japan etc which assisted their clients to undergo the process of IFRS conversion. ASA has contributed in many seminars and conferences. Being a member of NIS Global.Your Partner in Change ASA has established a center of excellence for IFRS. Companies Act. etc. The team includes chartered accountants certified in IFRS. b) Impact Analysis (3-6 weeks): Our detailed checklist helps to determine the impact of conversion on different stakeholders of the company viz. 7. shareholders. investors. may impact the net worth. c) User awareness and training Many people are yet not aware of IFRS. A change in the reporting format will require awareness of these new norms and systems. We could provide appropriate staff to close the gap. regulators. the large entities are expected to adopt Ind-AS The large entities might be: - Public Listed Companies forming part of Stock Exchange Index All companies above a particular level of net worth. promoters. the value of assets as well the profitability of the organization may swing. c) Conversion (3-4 months): We would take the company through the process of conversion including changes to accounting/opera tional systems). their complexities and impact. if so required by the parent company for consolidation purpose. We are fully geared to provide the following services a) Training (3-5 days): We have both general and industry specific training modules on IFRS. 6. both for the professional as well the user. besides coordinating the conversion activities with the concerned IT vendor. training and education. Some Key Challenges to Implementation a) Amendments in the Law IFRS will have a bearing on the legal provisions as are presently set out in the Indian Income Tax Act. etc. b) Impact on financial results Financial reports will experience a lot of changes. we are able to bring to bear experience of other member firms in Europe. and has arranged client specific workshops as regards the various aspects of IFRS conversion. Indian subsidiary of foreign companies. which. Our certified trainers would help your users to understand the IFRS and its key differences with AS. . For example treatment of depreciation differs. Hence.5.

Broad Based Assessment of IFRS Impact Information Requirement Planning Process Analysis Proper Reconciliation To ensure Correctness Update SOP’s Platform For Regular Updates From IASB Custom Code Interfaces. Extensions Solution Design. Build & test Systems Integration Testing Cutover Planning Develop Change Strategy Infrastructure Management Securitay & Controls Manage the change Development Management Team Training User Procedures & Training Program Management Change Management Information Technology firm ASA Communication Initial Conversion Knowledge Management Preliminary Study .Conversion Roadmap Evaluate IFRS and Indian GAAP Differences Evaluating and Selecting IFRS Accounting Policies Integrate Implement Creating IFRS Financial Statements during the DUAL Reporting period.

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