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India Incs 3 Critical Financial Changes in 2011- will they be winner like 3 idiots

The recently released movie 3 Idiots, based on 3 college graduates experimenting and challenging a deeply rooted, established education system, has turned out to be quite a huge hit in India. Taking a cue from the 3 Idiots, I cannot help but ruminate on the impact that the 3 Critical Changes will have on how the India Inc does its business? Will India Inc emerge a winner or a loser? There is no doubt that all three financial changes i.e. IFRS, GST, Direct Tax Code, which are supposed to be effective from 2011, will have some effects. Even if implemented in silos, they’ll change the way business is done and the financial statements are prepared. As an example, IFRS is not just an accounting change but it will also have an impact on overall policy changes that effect each and every stakeholder of the organization, be it an employee or a shareholder

 
The 3 changes still have a lot of loose ends. They still need a lot of discussions amongst different stakeholders in order to be finalized. Though some work is happening in some fields but the pace of progress may not be good enough to leave sufficient time for them to adopt these changes.

 

So, will India Inc be ready to implement all or some of it will get pushed?  May be IFRS would have to be given a back seat because it involves changes in various acts and laws or GST where paper is still not released for public debate or Direct tax code with a lot of ambiguity still to be looked into..

 

As the year 2011 unfurls, so may the answers to these questions. Lets wait and watch for more…

 

 

Posted by Giriraj Somani on January 12, 2010 01:53 PM |

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