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.
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.