The government today postponed the convergence of Indian accounting standards with the international standards, thanks to the relentless lobbying by corporates, and unresolved taxation issues.
The government wanted to converge with the International Financial Reporting Standards (IFRS) from April 1, 2011 in a phased manner. However, corporates had been lobbying hard to defer the implementation, arguing that they were not prepared for such a convergence right now.
In fact, industry body Ficci had written a letter to the ministry of corporate affairs (MCA) advocating that IFRS implementation should be postponed as the industry needed more time to prepare.
Also, it argued, that even countries like the US and Japan had not adopted the international standards as they were still studying the ramifications of the move.
“It would be ensured that the implementation of the converged standards in a phased manner is smooth for the stakeholders. The date of implementation of the IFRS will be notified by the ministry at a later date,” the finance ministry said in a statement
( One may refer press note attched in PDF formate )
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