Indian corporates should be ready to comply with International accounting norms by April 1, 2011, to transit smoothly to the new converged standards while also giving an opportunity to understand its ramifications, both positive and negative, said Amarjit Chopra, president, The Institute of Chartered Accountants of India (ICAI).
Addressing the media here on Tuesday, he said ICAI would act as catalyst and facilitate the implementation of IFRS as per the commitments made by the Central Government.
``After deliberating on the various parameters to be applied as the criteria for selection of the companies to be brought under the ambit of IFRS converged standards, it was suggested that the implementation of the IFRS converged standards should take place in a phased manner, he said.
The entities that would be required to apply IFRS converged standards from April 1, 2011, are entities like the NSE - Nifty 50, BSE Sensex 30, all Scheduled Banks having subsidiaries, branches or other operations outside India, Insurance entities, Mutual Funds or Venture Capital Funds, as sell as the entities having a net worth in excess of Rs 1000 crore.
However, the SME sector which contibutes to the Indian economy significantly, would continue with the existing Indian Accounting Standards, Chopra said.
G Ramaswamy, Vice-President, ICAI, said that his body had made suggestions on Direct Taxes Code, ranging from ability to pay, equitable prinicple of equity, priniciple of natural justice, simplification to create a positive impact onthe econmic development of the country.