International Financial Reporting Standards (IFRS)/ Ind AS

IFRS

These are global accounting, reporting and disclosure set of standards for reporting financial results and are applicable to general purpose financial statements and other financial reporting of all profit-oriented entities.

The term International Financial Reporting Standards (IFRSs) includes IFRSs, IASs and interpretations originated by the IFRIC or its predecessor, the former Standing Interpretations Committee (SIC). IFRS are increasingly being recognized as Global Reporting Standards for financial statements. More than 100 countries such as European Union, Australia, New Zealand and Russia currently permit the use of IFRS in their countries.

With the growth of Indian Economy and increasing integration with the global economies, Indian corporates are raising capital globally. Under the circumstances, it would be imperative for Indian corporates to adopt IFRS for their financial reporting.

Benefits of adopting IFRS

  • IFRS would enhance the comparability between financial statements of various companies across the globe.
  • Better understanding of financial statements would benefit investors who wish to invest outside their own country.
  • It would benefit the economy by increasing growth of international business.

 Areas, in which we can assist:

  • Assistance in preparation of IFRS compliant Financial Statements.
  • Assistance in formulating system to gather information required for preparing IFRS compliant Financial Statements.

IND-AS

India will be converging with the IFRS instead of adopting the IFRS.
India had set a roadmap for convergence with International Financial Reporting Standards (IFRS) commencing from 1 April, 2011, however, it was deferred by the Ministry of Corporate Affairs (MCA) and it is expected to be made applicable from 1st April, 2012. The convergence with IFRS standards is set to change the landscape for financial reporting in India.

The MCA in liaison with the Institute of Chartered Accountants of India (ICAI) has notified 35 IND-AS that has been synced with IFRS.

Areas, in which we can assist:

  • Assistance in preparation of IND-AS compliant Financial Statements.
  • Assistance in formulating system to gather information required for preparing IND-AS compliant Financial Statements.