Harmonization of the Provisions of the Companies Bill, 2009 with the International Financial Reporting Standards Recommended
The Standing Committee of Parliament, which thoroughly examined The Companies Bill, 2009, has observed that there are several matters included in the Bill, which need modification with a view to harmonizing them with the International Financial Reporting Standards (IFRS). The Committee has, therefore, desired that all such matters requiring harmonization with IFRS should be considered and appropriate amendments may be made in the relevant proposals contained in the Bill. The Standing Committee on Finance (SCF) presented its Twenty-First Report, which pertains to the Ministry of Corporate Affairs, to the Parliament recently.
The Committee’s examination of the subject and the replies of the Ministry received thereon reveal that the following provisions/clauses of the Bill require modification for achieving convergence with IFRS:
2(1) (b) (Definition of the term ‘accounting standard)
46(2): Utilisation of securities premium account
59(3): Reduction of share capital
110(2): Prescription o depreciation rates
117 (1) and 117 (4): Financial statements to comply with accounting standards
201 Schemes of Mergers and amalgamations.