India will implement internationally accepted reporting rules, IFRS, from April 1 next year, Minister for Corporate Affairs and Power Veerappa Moily has said.
This will be done even if the proposed new direct taxes code is not ushered in by that date, he said at an Assocham event here.
The Minister also indicated that his Ministry would soon form a committee that would, among other things, suggest ways for IFRS implementation.
The CA institute is yet to take a call on contentious issues like adoption of ‘fair value’ concept.
Moily’s remarks about his Ministry’s resolve to implement IFRS clears doubts over India’s commitment to implement such rules.
A roadmap suggested by the Ministry some years ago had proposed IFRS implementation from April 1, 2011, for certain companies with turnover of over Rs 1,000 crore. But implementation was put off in the wake of tax-related issues.
With the Government looking to enact a new direct taxes code from April 1, 2013, there is expectation that thorny taxation issues under ‘fair value’ concept would be resolved by that date.
Even if that does not happen, the Ministry will go ahead with IFRS convergence, he said.
International Financial Reporting Standards (IFRS) are now accepted in over 100 countries. India has already developed accounting standards (Ind AS), largely in line with IFRS. But the implementation date is yet to be specified.
Many in corporate India, however, feel that the time is not ripe to go in for such rules. They point out that even the US commitment to IFRS adoption is in doubt.
Accounting experts, however, say that it is not proper to compare India’s approach with the US stance.
Currently, the US, Japan and India are the three main economies that have not adopted IFRS. Canada, Brazil and Russia moved to IFRS last year.
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