Convergence with International Financial Reporting Standards

The Government has informed Lok Sabha that the Government has adopted the approach of convergence of Accounting Standards issued under the Companies Act, 1956 with the International Financial Reporting Standards (IFRS), keeping in view the requirements relevant to Indian conditions and to enable Indian companies and concerned regulatory bodies to transform to the new standards smoothly.

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Nucleus Software wins Gold shield for Best Annual Report, 2009, by ICAI

The award under different categories is conferred on the basis of evaluation administered by ICAI’s committee for the degree of compliance with the accounting standards, statutory guidelines and other relevant pronouncements which also include governance.

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Two separate sets of accounting standards u/s section 211(3C) of the Companies act agreed upon by the core group for convergence of Indian accounting standards with IFRS

Ministry of Corporate Affairs

FOR BANKING AND INSURANCE COMPANIES THERE WILL BE SEPARATE ROADMAP

The Core Group, constituted by the Ministry of Corporate Affairs for convergence of Indian Accounting Standards with International Financial Reporting Standards (IFRS) from April, 2011, that held its meeting on 11th January 2010 agreed that in view of the roadmap for achieving convergence, there will be two separate sets of Accounting Standards u/s Section 211(3C) of the Companies Act, 1956. 

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Small and medium enterprises will not have to prepare their accounts as per IFRS

Small and medium enterprises (SMEs) in the country will not have to prepare their accounts as per the International Financial Reporting Standards (IFRS) from April 1, 2011, saving them significant cost of switching to the more rigorous accounting standard A government-constituted core panel on IFRS has decided to exempt SMEs from the first phase of convergence falling due in 2011.

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Government may introduce bill to amend the Companies Act in the budget session

The government plans to introduce a bill to amend the Companies Act in the budget session of parliament to enable convergence of Indian accounting standards with the International Financial Reporting Standards (IFRS). “The ministry will carry out the exercise for necessary amendments in the Companies Act in the forthcoming budget session of parliament,” said a statement from the corporate affairs ministry.

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Government committed to converge to IFRS by April, 2011

The core group for convergence of Indian Accounting Standards with International Financial Reporting Standards accepts the Report of Sub-Group 1.  Ministry of corporate affairs reiterates commitment to carry out the convergence of Indian accounting standards by April, 2011.

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Suspension of Accounting Standards 11 under Bombay high courts scanner

The Union governments move to suspend Accounting Standards 11, allowing companies to show foreign currency liabilities as assets, has come under the Bombay high courts scanner. The petition filed by an organisation of city-based legal experts, Just Society, has claimed that this permits firms that might otherwise be sick to paint a rosy picture .

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ICAI Invited Suggestions, queries/comments relating to tax issues arising from implementation of IFRS

The Central Board of Direct taxes and the Institute of Chartered Accountants of India have jointly constituted a study group to identify direct tax issues arising from convergence of Indian Accounting Standards [IAS] with the International Financial Reporting Standards [IFRS].

The 1st meeting of the aforesaid Study Group was held on 6th January, 2010 in the head office of the Institute at New Delhi. The meeting was chaired by the President, ICAI.

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