Govt to rework A/c deviations in Indian version of IFRS
May, 19th 2011
The government is exploring options to rework at least two vital accounting deviations adopted in the Indian version of International Financial Reporting Standards, or IFRS, so that financial statements by Indian companies are aligned globally and also to enable local companies to raise capital overseas easily.
The treatment of exchange differences and the accounting for valuation of fixed assets were two bigticket items that were suitably modified for Indian companies, in a stark departure from norms under global IFRS.
This was done to smoothen the transition for Indian companies to the global accounting norm of IFRS, by April 1, 2011.
"Now that the deadline of April 2011 has passed, the government is willing to relook at these proposals and make Indian standards more in line with global norms," said one person familiar with the process of preparing the converged Indian Accounting Standards, typically described as Ind-AS .