Discussion On IFRS

What is IFRS

International Financial Reporting Standards, or IFRS, is the collection of financial reporting standards developed by the International Accounting Standards Board(IASB), an independent, international standard setting organization.

The aim of IFRS is to provide "a single set of high quality, global accounting

standards that require transparent and comparable information in general purpose financial statements.".

From 1973 to 2001, IAS were issued by the International Accounting Standards

Committee (IASC). In April 2001 the International Accounting Standards BoarCommittee Board (IASB) adopted all IAS and began developing new standards called IFRS. It is noteworthy that an IAS remains in effect unless replaced by an IFRS. Convergence with IFRS has gained worldwide momentum in recent years. More than 113 Countries currently require or permit the use of or have a policy of convergence with IFRS.

China, Japan, Brazil, South Korea and Canada have announced to converge

between 2009 to 2011 respectively. All European union companies, whose

securities are listed on EU- regulated stock exchange using IFRS since 2005.

Why IFRS ?

_ Numero-uno accounting framework with global acceptance.

_ Business going global, more cross border transaction

_ Access to international capital market

_ Lower cost of raising funds

_ Single global financial reporting languag_ language

_ Enhance confidence of global stakeholders

_ Facilitate International acquisition

_ Peer to Peer Comparison

_ Standardized quality of management information system

 IFRS in India

ICAI has taken up the marathon task of paving a smooth transition since 2006 and invites relentlessly moving closer to the final stage.

To ease convergence with IFRS, Ministry of corporate affairs (MCA ) has

Constituted a core group with 3 members from ICAI to deal with all relevant constituted relevant convergence concerns. The other members are National advisory committee on Accounting standard (NACAS), SEBI, RBI, IRDA, CFO’s of some industries.

In line of Global Trend, the ICAI has proposed a plan for convergence with IFRS for listed entities, Banks, Insurance etc. with effect from accounting period commence on or after 1st April 2011. Large Scale entities defined as entities with turnover in excess of Rs.1 Billion or borrowing in excess of Rs.250 Million.

For Other ‘small and medium sized entities’ (SMEs)), a separate standard for SMEs is formulated based on the IFRS for Small and Medium-sized Enterprises.

Mr. Daga, my warm regards to you.

I hope that you understand the sensitivity of the statement that you are making on this platform. Students use this platform not just to imbibe the quality information but also to share their knowledge and information, may that be a grapevine. I understand your concern, but I hope that you address specific issues to the administrator.

You as a professional needs to understand that when you involve students there is always a hindsight and we need to be aware of it.

When you say "thatswhy now a days lots of people are not participating in the CLUB (Including me) because lots of people dont have that much of waste time" - thats' completely uncalled for.

I believe people are participating and using this common platform to address several issues and not just gossips. You are a senior person and I have a great respect for you and I hope you will endeavor in motivating students rather than giving a whapping on a general observation. Your knowledge is immaculate and we are sure that we will learn a lot from your experience.

Regads,

Jigar

Jigar if you think whatever i said thats wrong than i have sincere apology but its not my  view only, i got this feedback from several people.

As you rightly said there are lots of issues apart from our knowledge. Even once i was a student, So i know what kind of problems we guys are facing. But just look the ratio. Its almost 75% and 25% which is not acceptable.

When you do all this in your free time i have no issue, But i was really feeling bad when you guys do all this in your exam time. Two months before exam is really tuff time and we have to prepare ourself for exams not for gossiping. Again i am sorry if you are not liking my word. But i am worry for your future.

There is a time for everything but CA exam is not a joke.

But still if you guys think i am wrong, I have sincere apology to all of you and in future if you guys need any kind of help from me (Technical). Please pm me, I will reply (If I feel its worthy).

All the best for your great future and your result

Thanks & Best Regards

Amit Daga

THANKS AMIT SIR.........

FOR GIVING KNOWLEDGE TO US ABOUT IFRS.........

SIR ONE more thing

very glad to see you here after a long time......

i was very upset that the members like you are not taking part in the activities organised by CCI.

but now i am happy....

Sir,

Its good that you have started a discussion on IFRS which is an important aspect considered in our Profession ...

Its just not enough to Know why IFRS is being Implemented I want to the consequent changes in reporting and how best we can implement the same in any organisation . Now that we are following Accounting Standards and as of now we have atmost 32 standards .My Doubt that If IFRS comes into picture then is it like disclosure of each and every standard changes or wat is like ..Just confused ... I hope you would help in the same matter ...

Long ago our ancestors have declared and declared it rightly that, by sharing knowledge gets enhanced which is peculiar with only knowledge and nothing else...

The write up about IFRS is really enlightening...

Please keep enriching us....

Hi Manasa,

As of now, Institute is going with our standard only. But they are making our standard completly in line of IFRS. You can check institute site also where they are publishing about the revised standard and stating that standard is inline of IFRS.

As you asked me, "If IFRS comes into picture then is it like disclosure of each and every standard changes or wat is like "

IFRS have its own disclosure, which is more than our disclosures ( I can say almost double) So, We have to follow the disclosure under IFRS. Secondly, Our standards are also changing proportently and adopting the same disclosure which is asking under IFRS.

Hope i am able to solve your query. If you have any other concern or still have a doubt let me know

Thanks & Best Regards

Amit Daga

Sir thanx for the information but can u please tell me This IFRS has replaced AS

So what we have to study i mean i have attemt in May 11 so what shud i study

Thanks for the reply Sir ... Ya my doubt is cleared now.. Its an aspect which need to be more focused now so might be will have some silly stupid doubts..

Sir As priyanka asked you Is it applicable for May 2011 Final attempt...

Hi,

Priyanka

Phased roadmap for IFRS implementation:

A careful analysis of the press release reveals that MCA recognizes two sets of Accounting standards in India as as detailed below :

The press release suggests that IFRS will be implemented in India in 3 Phases starting from as at april,1 2011 as detailed below :

1)      Indian accounting standards converged with IFRS

          Phase I

( applied for following categories of companies will need to convert their opening balance sheets as at april1,2011 in compliance with IFRS 

                Companies part of NSE – Nifty 50

                Companies part of BSE – Sens*x 30

                Companies whose shares or other securities are listed outside India

                 Companies,listed or not,having a net worth in excess os Rs.1000 crores

Phase II

Companies, listed or not,having a networth exceeding Rs.500 crores but not exceeding Rs.1000 crores will need to convert  their opening B/s as at april 1,2013 in compliance with IFRS.

Phase III

All listed companies having a net worth of RS.500 crores or less will need to convert their Opening b/s as at april,1 2014 in compliance with IFRS.

Small and medium companies need not comply with IFRS.

The following companies can continue to follow the existing Indian AS and are not required to follow IFRS

Non-listed companies with a networth of Rs.500 crores or less and whose shares or other securities are not listed on stock exchange outside India.

Small and medium companies (SMCs)

However these companies have an option to follow IFRS

2) Indian accounting standards notified in Companies(Accounting Standards) Rules       2006

These are the standards used presently by Indian companies under the companies act,1956.

Companies not falling within the threshold limits for IFRS compliance in the respective phases shall continue to use these standards in the preparation and presentation of financial statements.

3)      For all practical purposes, we have to consider a third set of AS also.

         These are the standards issued by ICAI and which shall be applicable to all non-corporate entities. ICAI now modifying all AS inline with IFRS.

Note :

It should be noted that the documents released by MCA is only a press release

And eventually what will be binding on companies will be the relevant amendements to the companies act,1956 in this regards.

So,

Priyanka there is no question of replace.

For exam purpose wait for ICAI notification………………

Regards

K.Ilayaraja.