Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: due date for vat payment :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: cpt :: empanelment :: ACCOUNTING STANDARDS :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: form 3cd :: articles on VAT and GST in India :: TDS
 
 
« ICAI »
 Annual Improvements to IFRS® Standards 2015–2017 Cycle
  Result of the Chartered Accountants Final Examination held in November 2016 and Common Proficiency Test (CPT) held in December 2016 are likely to be declared on Tuesday, the 17th January 2017.
 Result of the Information Systems Audit [ISA] Assessment Test held on 24th December 2016 is likely to be declared on 17th January, 2017.
 Exposure Draft of Ind AS Taxonomy for Comments.
 The Rules regarding Condonation of delay in submission of Forms related to various regulations of the Chartered Accountants Regulations, 1988.
 The Rules regarding Condonation of delay in submission of Forms related to various regulations of the Chartered Accountants Regulations, 1988.
 CPE Events 9th December - 14th December 2016
 Certificate Course on Arbitration, Mediation & Conciliation on 13th, 14th , 15th, 20th, 21st, 22nd, 27th, 28th, 29th January, 2017 and 5th February, 2017 at Indore.
 Exposure Draft of Revised SA 720, “The Auditor’s Responsibilities Relating to Other Information” for Comments
 Announcement of setting up of Branch of WICASA at Satara
 CPE Events 2nd December - 7th December 2016

IFRS the way to go for Indian cos in US - ICAI
October, 29th 2008

It will now be advisable for Indian companies listed on the US stock exchanges to comply with International Financial reporting Standards (IFRS) as spending money on the new US GAAP, which is financial accounting standard, FAS161 is not going to have long-term benefits.

At present, the companies listed on the US stock exchange have to prepare two set of statements which is by the Indian GAAP as well as by the US GAAP. Once the Indian accounting standards are fully converged with IFRS, then an Indian company listed on the US stock exchange preparing financial statements under Indian GAAP would not be required to prepare a separate financial statement under US GAAP. This would save the compliance cost for the Indian companies listed on the US to a great extent.

The Institute of Chartered Accountants of India(ICAI) president Ved Jain said, "Taking the 2007 announcement of SEC into consideration, it will be more advisable for the Indian companies who are listed on the US stock exchange to follow IFRS. Moreover, early adoption of IFRS is always encouraged as it would allow the users of getting a proper disclosure of the financial statements that would help them to re-evaluate the operations. Moreover, the information on the financial statements would be available to its users on a timely basis".

According to the decision taken on November 15, 2007 by the Securities and Exchange Commission for the companies listed in the US which said, "Financial statements from foreign private issuers in the US will be accepted without reconciliation to US Generally Accepted Accounting Principles only if they are prepared using (IFRS) as issued by the International Accounting Standard Board.

US Financial Accounting Standards Board (FASB) has come out with even more detailed statement of financial accounting standard which is FAS-161. This is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. Although, FAS-161 has its own set of advantages in the form of better disclosures relating to financial instruments like derivatives but still for the Indian companies, to go by IFRS would be a better option. This is because FAS-161 is not going to have long-term benefits.

Some of the companies that follow the US GAAP are Wipro Ltd, Infosys Technologies, Satyam Computer Services Ltd, Patni, Bharti Airtel. The companies who are listed on the US stock exchange have an option to choose either between the US GAAP or IFRS.

These companies will not be required to give reconciliation statement if they follow IFRS and not the US GAAP. Reconciliation statements are prepared to identify the difference between the financial statements prepared under one set of GAAP and another set of GAAP.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions