The Institute of Chartered Accountants of India (ICAI) has decided
to fully converge with the international financial reporting
standards (IFRS) from April 1, 2011.
The IFRS are issued by the International Accounting Standards Board.
A work plan would be formulated by the ICAI to ensure that IFRS are
effectively adopted from April 1, 2011, according to the institute's
President, Mr Sunil Talati.
This decision is an important milestone in achieving full
convergence with IFRS as India will join 102 countries that
presently require or permit use of IFRS in preparation of financial
statements in their countries. With a view to ensure smooth
transition to the IFRS, the ICAI will take up the matter of
convergence with IFRS with the National Advisory Committee on
Accounting Standards and various other regulators such as the RBI,
SEBI and IRDA.
Like in other countries such as Australia, New Zealand and countries
in the European Union, the IFRS will be initially adopted for the
listed entities and other public interest entities such as banks,
insurance companies and large sized entities.
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