A couple of weeks ago, the Indian government announced dropping the new rule from International Financial Reporting Standards that allows property developers to book sales only when the project is complete. Another announcement came out this week of dropping the government’s plans to introduce a new accounting norm for agriculture as part of the move to converge its accounting standards with globally adopted International Financial Reporting Standards (IFRS).
India will keep their present rules to guide the agricultural industry in maintaining their financial statements. Apart from agriculture the Indian government will depart or “carve out” compared to IFRS in real estate, property, plant and purchase and mergers to name a few key areas.
The guideline based standards of IFRS have been met with general acceptance over the world, except some specific areas that the countries consider sensitive like banking where countries want to keep their own standards which usually are rule based.
