Even thought the Indian version of the International Financial Reporting Standards (IFRS) has been altered here and there, the country is all set to implement the standards come April 2011.
In the first phase, companies on the Indian stock exchanges – Nifty 50 and BSE Sensex, firms whose securities are listed on stock exchanges outside the country, and all those having a net worth of R1,000 crore, would switch to the new accounting system.
Insurance and banking companies, however, would be required to migrate to the IFRS methodology from 2012, the circular said.
The Institute of Chartered Accountants of India (ICAI) has also set up a group, which includes members from the finance ministry, for identifying tax issues that may arise from the convergence issue. The group has prepared a draft report identifying certain options that could be adopted to achieve tax neutrality.