FULL CONVERGENCE WITH GLOBAL ACCOUNTING STAN- DARDS BY 2011, SAYS ICAI

Indian Accounting Standards will fully converge with the International Financial Reporting Standards (IFRS) by 2011.The National Advisory Committee on Accounting Standards (NACAS) is reviewing AS-30, AS-31 and AS-32. Following this, AS-32 will become mandatory from April 2011.There are now more than 100 countries across the world where IFRS is followed. Once the Indian accounting standards converge with the IFRS, it would be first applicable for the listed companies and then for other entities in phases. The convergence to IFRS would greatly enhance Indian entities’ ability to raise and attract foreign capital at low cost. The US is proposing that foreign filers may comply the US GAAP if they adopt the IFRS standards.