Accomplishment of ICAI in IFRS convergence process

The international financial reporting standards (IFRS) issued by the IASB are increasingly being recognized as the global financial reporting standards.

Convergence with IFRS has gained worldwide momentum in recent years. More than 120 countries require or permit the use of or have a policy of convergence with IFRS.

India being an important emerging global economy; the ministry of corporate affairs has committed Convergence of Indian accounting standards with IFRS from April 1, 2011.

The ICAI was entrusted with the responsibility of formulating the Convergence of process and ensure The Accounting Standard Board (ASB) of ICAI constituted a task force in the year 2006 to explore the approach for Convergence with IFRS and laying down the road map for Convergence with IFRS.  Since then, ICAI has been relentlessly making extensive analysis of various ground under which the Convergence process would go through and identified the various legal and regulatory requirement arising out of Convergence with IFRS. ICAI has also made recommendations of changes in the respective acts, guidelines and other regulatory provision that would have a smooth transition process.