Most of the world’s economists already speaks to investors and stakeholders about corporate financial performance using one language—the language of International Financial Reporting Standards (IFRS). In an increasingly integrated global marketplace, it makes sense for businesses to operate under a single financial reporting framework. More than 100 countries, including the members of the European Union and parts of Asia, have already adopted or permit IFRS.
The Institute of Chartered Accounting of India (ICAI), Ministry of Corporate Affairs (MCA) & other statutory bodies are moving India businesses in the same direction. All signs suggest that change is on the horizon. The Ind ASs placed on the MCA website when notified under Section 211 (3) (c) of the Companies Act, 1956 by the MCA will be applicable to the companies from the date specified in the said notification. Section I of the note contains IFRSs deferred by the MCA. Section II contains carve outs from IFRSs in the relevant Ind ASs. Section III contains ‘Other major changes in Indian Accounting Standards vis-à-vis IFRSs not resulting in carve outs’. Section IV contains a comparative chart of IFRSs and corresponding Ind ASs indicating, inter alia, IFRSs in respect of which no corresponding Ind AS has been formulated and reasons there for.