IFRSs, CHALLENGES AND OPPORTUNITIES
A core group set up by Government of India in consultation with ICAI has decided a road map
for implementation of IFRS in India. In terms of the road map, the phase-1 of the IFRS will be implemented on all large companies with net worth of Rs. 1000 crore or more and above besides companies in BSE, Sensex, Nifty - Fifty. In terms of phase-2, the companies with net worth of Rs. 500 crore to 1000 crore class will be brought in including banks, insurance companies and financial sectors.
IFRS - International Financial Reporting Standards including international accounting standards, as a part thereof have large number of conceptual changes in respect of accounting for various assets, liabilities, revenue and expenditure. The most important being fair value accounting, in comparison to historical cost accounting. ICAI has already done a lot of ground work in Indianizing IFRS and International Accounting Standards and IFRS compliance Accounting Standards will be known in India as IND Accounting Standards (IAS). In terms of ICAI plan being worked out in consultation with Government of India, almost all standards set out by IFRS will be Indianized by the ICAI in next 3 to 6 months. This will bring India to the international map of about 150 countries where IFRS is used as a benchmark standard.
How to Study
It is important to study the text of IFRS standards, as is being published in India by a private publisher i.e. Taxman. ICAI will also soon come out with Indian convergence of IFRS standards, as finalized by them in a matter of next 3 to 6 months. It is also important to participate in workshops and conferences and study circle meetings where IFRS is proposed to be discussed and adopted in depth.
Opportunities
The opportunities in IFRS area are very huge not only within India but also internationally for Chartered Accountants who are in employment as well as chartered accountants who are in practice. Those who are IFRS literate have a good potential -
for implementation of IFRS in India. In terms of the road map, the phase-1 of the IFRS will be implemented on all large companies with net worth of Rs. 1000 crore or more and above besides companies in BSE, Sensex, Nifty - Fifty. In terms of phase-2, the companies with net worth of Rs. 500 crore to 1000 crore class will be brought in including banks, insurance companies and financial sectors.
IFRS - International Financial Reporting Standards including international accounting standards, as a part thereof have large number of conceptual changes in respect of accounting for various assets, liabilities, revenue and expenditure. The most important being fair value accounting, in comparison to historical cost accounting. ICAI has already done a lot of ground work in Indianizing IFRS and International Accounting Standards and IFRS compliance Accounting Standards will be known in India as IND Accounting Standards (IAS). In terms of ICAI plan being worked out in consultation with Government of India, almost all standards set out by IFRS will be Indianized by the ICAI in next 3 to 6 months. This will bring India to the international map of about 150 countries where IFRS is used as a benchmark standard.
How to Study
It is important to study the text of IFRS standards, as is being published in India by a private publisher i.e. Taxman. ICAI will also soon come out with Indian convergence of IFRS standards, as finalized by them in a matter of next 3 to 6 months. It is also important to participate in workshops and conferences and study circle meetings where IFRS is proposed to be discussed and adopted in depth.
Opportunities
The opportunities in IFRS area are very huge not only within India but also internationally for Chartered Accountants who are in employment as well as chartered accountants who are in practice. Those who are IFRS literate have a good potential -
- To be employed by leading corporates
- To be employed by leading Chartered Accountant Firms
- To act as independent CA professionals in helping the corporates to converge to IFRS standards. These corporates will be within India as well as outside India.
- To undertake fair value valuation for re-valuation of property, plant & equipment's as well as for fair valuation for various assets and liabilities.
- Advisory in respect of accounting treatment of various important aspects.
It is important to note that this is a great opportunity for all Chartered Accountants. It is a must for every Chartered Accountants to understand IFRS Accounting, whether immediately it is going to be used by him or not.
We are committed to make IFRS easy.
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