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IFRS Objective
Principles based high quality global standards
Emphasis on relevance and disclosures

IFRS Adoption
Approximately 100
China

countries have adopted or are in the process of adoption Status of adoption by some countries which compete with India for capital allocation:

Similar to IFRS (effective for listed entities 2007) 2010 Currently applicable for banks. 2011 2014/15/16 2005 2011 (as per action
plan released)
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Brazil Russia

South Korea USA UK Nepal

The Global Move Towards IFRS

Canada 2009/11 Europe 2005 United States (2014/15/16?) China 2007 Japan (2016)

India 2011 Brazil 2010 Chile 2009 South Africa 2005 Australia 2005

Current or anticipated requirement or option to use IFRS (or equivalent)

IFRS in India
On April 5, 2010 Amendment to listing Agreement

provides the option of adoption of International Financial Reporting Standards (IFRS) by listed entities having subsidiaries while declaring Consolidated results/financial statements Standalone results will be as per the existing Indian GAAP

IFRS in India Road map

When the accounting year ends on a date other than 31st March, the conversion of the opening Balance Sheet will be made in relation to the first Balance Sheet which is made on a date after 31st March.

IFRS in India Road map

Companies which fall in the following categories will

not be required to follow the notified accounting standards which are converged with the IFRS (though they may voluntarily opt to do so) but need to follow only the notified accounting standards which are not converged with the IFRS. These companies are: (a) Non-listed companies which have a net worth of Rs. 500 crores or less and whose shares or other securities are not listed on Stock Exchanges outside India. (b) Small and Medium Companies (SMCs).

IFRS in India Road map

The draft of the Companies (Amendment) Bill, proposing for changes to the Companies Act, 1956 will be prepared incorporating the recommendation of Sub-Group 1 Report.

IFRS in India Road map

Revised Schedule VI to the Companies Act, 1956 according to the converged Accounting Standards has been submitted by the ICAI to NACAS which, after review, will submit to the Ministry. Amendments to Schedule XIV will also be made in a time bound manner.

IFRS In respect of Road map Accounting in India the converged

Standards, the Chairman of the Accounting Standards Board of ICAI will submit the converged version of Accounting Standards to NACAS from time to time for recommendations and onward submission to Ministry. However, convergence of all the accounting standards will be completed by ICAI and NACAS will submit its recommendations to the Ministry.

IFRS in India Road map

Roadmap recommended by Core Group of MCA in respect of insurance companies, banking companies and non-banking finance companies.

Insurance companies: All insurance companies will convert their opening balance sheet as at 1stApril, 2012 in

compliance with the converged Indian Accounting Standards.

IFRS Implementation Issues

Treasury Management
Hedge Accounting Investments

Valuation

Distribution

Fair valuation approach Fair valuation methodologies

2010-11 profit will change Dividend policy

Investor relations
Changes in EPS EU experience

Debt Covenants
IAS 1 requirements

IT Systems
Disclosures (IFRS 7) Hedge accounting Data collection

ORGANISATION

Mergers & Acquisitions

Control Goodwill Capital reserve IFRS 1 option

HR
Training Revised CTC

Management Compensation MIS

Increased volatility Fluctuations outside control Fair value adjustment

Tax Implication
Fair value adjustment Most item will flow through P & L

ESOP fair value Targets not achievable Director remuneration Investors

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