New comparison of IFRSs and Indian GAAP
Jul 14, 2008
Deloitte Touche Tohmatsu India Private Limited has published IFRSs and Indian GAAP: A Comparison.
This booklet (PDF 288k, 48 pages) summarises the strategy of the Institute of Chartered Accountants of India (ICAI) for converging Indian Accounting Standards and IFRSs and presents a comparison of current Indian GAAP and IFRSs in issue at 31 March 2008.
Summary of IFRS Convergence Strategy of Indian Institute of Chartered Accountants
Will all entities be required to follow IFRS?
Keeping in view the complex nature of IFRSs, the ICAI in its Concept Paper has expressed the view that IFRSs should be adopted for the public interest entities such as listed entities, banks and insurance entities, and large-sized entities from the accounting periods beginning on or after 1 April 2011.
Accounting standards for small and medium-sized entities
The ICAI has indicated that a separate standard may be formulated based on the IFRS for SMEs (an exposure draft of which has been issued recently) when finally issued by the IASB after making any modifications necessary. In order to be an IFRS-compliant country, it is not necessary to adopt the IFRS for SMEs to be issued by the IASB.
Format of converged Accounting Standards (ASs)
The ICAI, in its Concept Paper, has expressed the view that the format of standards to be adopted for public interest entities should be the same as IFRSs including their numbers. The numbers of existing ASs may be given in brackets for the purpose of easier identification. India-specific regulatory or legal aspects may be included in a separate section, where appropriate.
Date of adoption of IFRSs for public interest entities: whether stage-wise or all at once from a specified future date?
The ICAI, in its Concept Paper, has expressed the view that it would be more appropriate to adopt all IFRSs from a specified future date as has been done in many other countries rather than doing so stage-wise. After considering the current economic environment, expected time to reach the satisfactory level of technical preparedness and the expected time to resolve the conceptual differences with the IASB, the ICAI has decided that IFRSs should be adopted for public-interest entities for accounting periods commencing on or after 1 April 2011. This should give enough time for all the participants in the financial reporting process to help in building the environment supporting the adoption of IFRSs.