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The measurement of business and economic activity is essential to the assessment of the
performance of the entity. The publication of the financial information has provided a meansof
producing an account of the way in which the resource have been utilized within a business.

In modern and sophisticated capital market, financial reporting has become, for large
companies at least, a key raw material on which investors base their decision to supply funds

Over time, different practices and regulations have evolved to meet the requirement of national
economic, financial and legal systems. The challenge for international harmonization is to
reduce or eliminate the differences, to produce a level playing field for financial reporting and to
help create more efficient international capital market.

As a reflection of the movement towards international harmonization of financial reporting there

has been increased usage of international financial reporting standards (IFRS) worldwide to
match the growing internationalization of business.

There are around 150 countries that has already adopted IFRS and around 20 countries are in a
process of convergence



  


Is a predecessor body to IASB, was founded in June 1973, and in 2001 was superseded by
IASB with complete new structure of associated bodies and increased financial resources

IASB issued IFRS and adopted all the 41 IAS (International Accounting Standards) issued by
IASC.

Hence any reference to the term IFRS (International financial reporting Standards) would
include IAS as issued unless and specific statement to the contrary.






The structure of IASB is designed to demonstrate the attributes that are necessary to establish
to legitimacy of the standard ± setting organization, including the independence of its members
and the adequacy of technical expertise.

The preface of international financial standards lists the objectives of the IASB as being to:

Develop, in the public interest, a single set of high quality, understandable and
enforceable global accounting standards that require high quality, treasparent and
comparable information in financial statement and other financial reporting to help
 participants in the various capital markets of the world and other users of the information
to make economic decisions.

Promote the use and rigorous application of those standards

Work actively with national standard ± setters to bring about convergence of national
accounting standards and IFRSs to high quality solutions.

There are about 14 board members on the IASB, with each members having one vote. 12 of
the members are full time, with remaining 2 part times. Members of the IASB are appointed
for a term of up to five years which is renewable once.

   



It is a body set up to participate in the standard ± setting process. Members are appointed
by the international accounting standards committee foundation which also appoints
members to the IASB

The SAC¶s role include advising on priorities within the IASB¶s work programme, and the
IASB is required to consult with the SAC in advance of the board decision on major projects
that it wishes to add to its agenda


 




IFRIC is the successor to the former Standing interpretation committee (SIC) and is
responsible for the interpreting the application of international standards.

IFRIC prepares interpretations of how specific issues should be accounted for under the
application of IFRS. All SIC interpretations issued under the supervision of the IASC have
been adopted by the IASB.

IFRIC consists of 12 members who are required to operate on the basis of their own
independent views and not as representatives of the organizations with which they are
associated.


There are about in all 41 IAS, 9 IFRS supported by 19 IFRIC and 32 SIC of which 12 IAS, 4
IFRIC and 22 SIC stands to be withdrawn.




 
   
The Institute of Chartered Accountants of India (ICAI) has published near final Indian
Accounting Standards (Ind ASs) finalised by the Council of the ICAI and sent to the Indian
National Advisory Committee on Accounting Standards (NACAS).

The near final Ind ASs are based on IFRSs, but have some changes which are noted in the
appendix to each standard, e.g. investment property must be measured on the cost basis,
bargain purchases arising in business combinations are generally recognised in other
comprehensive income rather than profit or loss, and the 'date of transition' is the beginning
of the current period rather than the comparative period (an option to present comparative
financial statements in accordance with Ind-ASs on a memorandum basis is included).

The Ind ASs are subject to any changes which may be made by the Government before
their notification. There is currently a lot of debate in India whether the 'modified' IFRS
approach is the best way to implement IFRSs in India.

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Reliable, consistent and uniform financial reporting is important part of good corporate
governance practices worldwide in order to enhance the credibility of the businesses in the
eyes of investors to take informed investment decisions. In pursuance of G-20 commitment
given by India, the process of convergence of Indian Accounting Standards with IFRS has
been carried out in Ministry of Corporate Affairs through wide ranging consultative exercise
with all the stakeholders. á
 



 


 
 
 
 











 
   





 




 
 . These are: IND ASs 1, 2, 7, 8, 10, 11, 12, 16, 17,
18, 19, 20, 21, 23, 24, 27, 28, 29, 31, 32, 33, 34, 36, 37, 38, 39, 40, 101, 102, 103, 104, 105,
106, 107 and 108. The Ministry of Corporate Affairs will implement the IFRS converged
Indian Accounting Standards in a phased manner after various issues including tax related
issues are resolved with the concerned Departments. It would be ensured that the
implementation of the converged standards in a phased manner is smooth for the
stakeholders. á 
 


   



 




PRESS RELEASE- 7/2011 No.1/1/2009-IFRS Dated the 25th February, 2011

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