Sage-Tips

Why is IFRS not implemented in India?

More importantly because law overrides accounting standards, full convergence with IFRS is not possible unless those laws are amended or an overriding section is enacted with regards to accounting standards. Some key examples are discussed below. Companies Act, 1956 prescribes statutory depreciation rates.

Does India comply with IFRS?

India has not adopted IFRS Standards for reporting by domestic companies and has not yet formally committed to adopting IFRS Standards.

How is IFRS implemented in India?

India has not adopted IFRS Standards for reporting by domestic companies however has issued a formal roadmap on how it will be implemented. All companies listed or in the process of being listed with net worth >= INR 500 crore (US$ 72 million approx.)

What is the difficulty in implementing IFRS in India?

Lack of training facilities and academic courses on IFRS will also pose challenge in India. There is a need to impart education and training on IFRS and its application. 3.

Why is IFRS a bad idea in India?

Because of unscrupulous Indian business groups and lethargic attitude on part of the ICAI. IFRS can easily expose the fragile financial structure of Indian corporate groups, especially the heavily indebted infrastructure sector, and complicit banking sector.

Which countries have converged with IFRS?

As on date 123 countries across the globe have converged with IFRS, India is soon to join the bandwagon. The Ministry of Corporate Affairs in its press release dated 25.2.2011 notified 35 Indian Accounting Standards converged with International Financial Reporting Standards (henceforth called Draft IND AS).

Why ICAI issued Indian Accounting Standard converged with IFRS?

The Indian environment and Global environment are different which leads to a huge gap between AS issued by ICAI & IFRS issued by IASB. So as to bridge the gap between AS & IFRS, ICAI issued Indian Accounting Standard converged with IFRS (formally known as Ind AS)

What is the difference between IAS and IFRS?

International Financial Reporting Standards (IFRS) is the revised name for IAS (International Accounting Standards). Non revised Standards continue with the prefix IAS. ‘Reporting’ rather than only accounting is the focus. AS generally referred to Accounting Standards in countries which had not adopted IAS fully.