Top financial professionals of India Inc are keen on converging to global accounting norms and want the present ones to be aligned with either the International Financial Reporting Standards (IFRS) or the US GAAP.
While 64% of the surveyed Chief Financial Officers (CFOs) favoured alignment with IFRS another 31% favoured US Generally Acceptable Accounting Principle (GAAP), according to a survey conducted by global consultancy firm Ernst & Young.
Adoption of IFRS will increase transparency and make financial statements more comparable, Ernst & Young India director R K Agrawal said.
However, majority of the CFOs agreed that the Indian GAAP is sufficient, relevant and clear even in comparison to global standards.
Seventy nine per cent of the respondents believed that Indian GAAP met the needs of management to provide robust financial reports and 76% believed that it meets the needs of stakeholders to obtain financial information as well.
On the need for a standard setter there was consensus among the CFOs that ICAI should be the sole standard setter agency.