Conversion to IFRS from Indian GAAP

Hi Rajat, well as per ministry of corporate affairs,sebi ifrs would be applicable only to listed companies and that also if there turnover is more than 1000 crores during the py. But by 2013 it would be applicable to all companies.  Also small companies(no idea of turnover) will continue to report in indian accountaing standards.  So if ur company is listed and having t/o of 1000 crores then u better handle ur boss the circulars of mca.  I m sure then he will support u.

Hello yash,

Yess our company fulfils all the criterias and actually the problem is that my boss is not a CA thats why he is not thinking on that note.

Actually i want to know what would be the changes like one of the changes would be the items which are categorised under spares or stores we will had to categorise the same as gross capital investment in IFRS.

What I personally feel that the planning & budgeting shud also be done on line of IFRS to avoid duplication of work and to get true comparision and variance analysis.

Please corrct me if I am wrong

Hi

IRFS is applicable from 2011 onwards only to entities (whether or not companies, whether or not listed or whether private limited or public limited) which has a NETWORTH (not turnover) of Rs. 1000/- crores. It will be applicable to entities having networth of Rs. 500 cores or more from 2012 and to all other entities which are listed companies with effect from 2014.

So if your company fulfills the criteria, then you better do your budgeting based on IFRS, otherwise, your reported results will show substantial variances vis-a-vis your budget for the FY 2001-12.

Hello James,

Thanks for your valuable views, Thats what I am saying to my higher ups, but no one is agreeing to me.

Hi Rajat ,

It is quite  necessary that all planning and budgeting should be done , keeping in mind the IFRS implications . As Sooner or later all the companies would be binding by it . And you are absolutely thinking in right direction . Mould your accounting so as to be get fitted in IFRS framework

The question that ur boss is not agree with u - then explain him that Indian accounting is now going to be parallel wih international standards and government is making changes in relevant laws and principles to confront with it - If the company wnts to survive , it has to adopt it , and change the system

Otherwise , it can went in various litigations due to non compliance

What ever he says jus take them in writing or email

I hope it will solve ur problem

Thanks Anshika for your valuable suggestions,

Now i had bring the same issue to the notice of our CFO and he had shown some positive sign of interest and now i am thinking to make a presentation on the same.

Hi Rajat

Your thought is correct. But there is one reason, because of which we should wait replacing I GAAP Accounts or Budgets with IFRS. That is, still comanies Act needs to be amended and this work has not yet happened. What we can do is we can have an additional budget or accounts on IFRS basis, but can not touch our I GAAP Accounts or Budgets. The process of IFRS Implementation will happen, but certainty of time is still not there. ( Though MCA circular has come) but there are many issues to be resoved like IFRS 1 first time adoption issues, comarative nos. issues whether I GAAP or IFRS.

I realise that IFRS knowledge is important and those who get this first will benefit highly. But the top institutes seem to be taking an advantage out of it.

1. KPMG NIIT are offering a certificate course for about 40000 Rupees. The only benefit as they say is that KPMG faculty will be facilitating the training. But if you note, the actual training is conducted only for 6 days (1 day every week). There is no official recognition or certificate from a worldwide recognised institute like ICAEW or ACCA who are leaders in IFRS courses. The industry may also be reluctant to recognize this except those who are IFRS clients. For long term perspective or for new accounting graduates, this definitely does not seem to be the right choice. Big Companies who have a lot of money may engage KPMG to train their staff.

2. Piron is offering cheaper courses but the actual number of training days is only 2. You also have to buy the course material from ACCA They offer this training only if you register for the ACCA diploma program (as they have a tie-up with ACCA). Their faculty does not appear to be having a lot of current industry experience.

3. When compared to the two, the training offered by Regent Accounting Networks appears to be reasonable. First, they encourage you to acquire a IFRS certificate or qualification which is acceptable worldwide. They may also offer small discounts if you register through them. Then they teach for 28 days approximately. Their faculty has direct industry experience with a few trainers having 10+ years of international experience in countries like Australia, Hong Kong, UK and Canada. When I contacted them they said that they also ensure personal contact with candidates as their batch size do not exceed 30-40. They will also provide free learning resources to all candidates. They expect the course to be completed and certificates in your hands within 3 months. The only problem is that they do not have batches every month unlike Piron and KPMG

I think this appears to be the best option to me to get an international certificate (qualification) in IFRS in 40-45 thousand rupees.

I want to have it even if I do not clear my CA this time. So let me know if you guys have some more information on what is the best option.

Thanks

Ram