IFRS countdown has started, are we ready?
International Financial Reporting Standards (IFRS) will be mandatory in countries like India from April 2011 onwards. As per IFRS guidelines if companies has to report in IFRS based results on 31st March 2012, then transition should start from 1st April 2010 so as to have comparable figure for March 2011.
We are already in April 2009 and still no traction is seen on this topic from listed firms. Also there are various issues specially related to different laws in India that need to be sorted out by ICAI. Few examples like
- Reporting for Banks as they have prepare financial statements as per Banking Act
- How to calculate Deperciation in corporate tax books? As per IFRS or companies Act
Seems we are not ready yet.. will it be last minute rush by Indian Firms or we will get extension of deadlines. Let me know your thought..
Comments
Dear Giriraj,
You are right in saying that there are a number of issues that need to be resolved yet. The onus of solving these issues is with ICAI but the responsibility of raising these issues with the Institute is with the companies and professionals who help these organisations in compliance. Once all these issues are raised, ICAI would come up with suggestions on the same. In big professional organisations like KPMG, E&Y, etc., professionals are trained on IFRS compliance well in advance.
Now, the industry should raise issues and doubts with ICAI so that these may be resolved well in time. The users of technology need to be trained for this change of accounting and reporting structure and the same needs to be done now.
As an organisation which is trusted by its clients, I think, Infosys should go ahead and advise its clients for such training to users of our software to be trained on reporting in IFRS format. I feel that we have adequate resources to help our clients in this transformation in a reasonable way and be valued partners in their business.
Posted by: CA. Aanchal Thakur | April 30, 2009 4:56 AM
Aanchal,
I fully agree with you that Industries should start raising these issues now rather than waiting for the last moment. Within Infosys, we have already built an internal competency on IFRS and are ready to meet our clients' needs. I am also participating in IFRS seminars conducted by ICAI and raising such topics wherever possible. Let's see how things move.
Posted by: Giriraj Somani | April 30, 2009 6:15 AM
Hello Giriraj,
It's good to hear that Infosys has already built an internal competency on IFRS. I too would like to update my knowledge in the field of IFRS and would like to know if I can contribute (in whatever small way) in any way.
If you get any updates, please oblige by marking a copy to me too.
Posted by: CA. Aanchal Thakur | May 11, 2009 10:21 AM