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Changing over from GAAP to IFRS-1: Are we ready yet?

Miss Komal Mantri (Chartered Accountant ) (1974 Points)

16 August 2008

On introduction of new accounting standards, the regulators have two options,

either to provide a single implementation date (say, April 1, 2011 for all new standards) or

provide multiple implementation dates for different standards based on difficulty in implementation (say, 2009, 2010 and the remaining by 2011).

What is your view point?? whether to implement all together on apr 2011 or gradual implementation??

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2 Replies

CA Chaitanya (PRACTISING CA) (4283 Points)
Replied 17 August 2008

Gradual Implementation is suggestable.

Ankit Dangayach (Chartered Accountant) (691 Points)
Replied 23 August 2008

India is still not prepared for IFRS because we have to make some amendments in our companies Act before the implementation of IFRS. As per Tentative Schedule of ICAI we have to prepare Accounts Complying with IFRS w.e.f april 2011, but above all we also have to convert accounts of earlier years with those complying with IFRS for comparison purposes.Our Accountants(C.As Also) are not trained and prepared enough for complying with IFRS which require some drastic changes in method of accounting and companies need some time for there training.I think April 2011 deadline set by the ICAI is also challenging ,so anything before that is not feasible.We cannot follow two set of A.S at the same time i.e (IFRS & Indian GAAP) because in some cases they can be contradictory.

ICAI should take urgent steps for training of Indian C.As in IFRS so that fulle convergence with IFRS can take place w.e.f April 2011, otherwise Indian companies will lag Far Behind then there Foreign Counterparts in the area of quality of accounting.