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Accounting Standard

Preeti Jain (Company Secretary) (139 Points)

04 April 2011

Dear All,

Pls. let me know about Converged and non-converged Accounting Standard.

Thanks in Advance...................

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Abhinash Pansari (CA final Article) (101 Points)
Replied 06 April 2011

The International Financial Reporting Standards (IFRS) is, as all we know, is posed as the global language of accountancy which is aimed to make the comparison and interpretation of the financial statements across the world easier. This, however, is only possible if all the countries prefer the IFRS reporting. Till now, more than 100 countries of the world have adopted the IFRS as their standards of accounting.

India:

India has also committed itself at the G-20 to make it's companies IFRS compliant from April 1st, 2011. Now, there are two ways to make the reporting structure of a country IFRS compliant. Either you adopt the IFRS in their entirety, or you converge your local standards in lines with the IFRS. The India has adopted the latter.

It means, India has not adopted the IFRS in full but it is revising it's Accounting Standards (AS) to get them in line with the international reporting standards. The premier standard setting body in India is the Institute of Chartered Accountants of India (ICAI) which has already issued the "Exposure Drafts of Converged Accounting Standards". They can be read here.

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