Indian accounting standards to be made viable globally

 The Dollar Business Bureau India is planning a new accounting standard that will bring it at par with more than 105 countries where International Financial Reporting Standards are mandatorily followed in a month’s time. The standards to be implemented voluntarily to the companies of financial year 2015-16 and on a mandatory basis from 2016-17 for all listed entities of over Rs 500 crore have been given in principle approval by The National Advisory Committee on Accounting Standards.  “The notification for Ind-AS is going to happen in a month,” Ministry of Corporate Affairs Joint Secretary A S Bhatia said on the side-lines of a seminar on corporate governance organised by the CII and the Institute of Cost Accountants. The government’s commitment to adopt Ind-AS will further strengthen India’s ability to attract foreign capital and access global capital markets. “All IFRS standards had been adopted while in two areas – forex exchange and agriculture – the standards had been adopted after being curved-out to suit Indian conditions,” ICAI council member Abhijit Bandyopadhyay said. The National Advisory Committee on Accounting Standards has given its approval. This shall be applied to the companies of financial year 2015-16 voluntarily and from 2016-17 on a mandatory basis for all listed entities over networth of over Rs 500 crore. In the next year, the standards will be applicable to all listed companies and unlisted companies having networth of over Rs 500 crore and followed by that unlisted entities over Rs 250 crore networth has to follow the new accounting rules. Meanwhile, Bhatia said the notification for certain exemptions for government companies, private, Section 8 and Nidhi companies was pending and the department was trying to speed up. “There is a technical requirement to wait till Parliament’s budget session that will continue till May,” he said.  

This article was published on February 6, 2015.