Beruflich Dokumente
Kultur Dokumente
IFRS
Presented by:
Pramodkumar V. Deshani, Lecturer, Faculty of Commerce
Dipti T. Arora, Lecturer, Faculty of Commerce
Globalization of business
Increasing complexities of
economic transactions
IFRS and Countries of the
world
European union, Australia, China, New
Zealand, Russia currently require or
permit the use of IFRS
India, Japan, Srilanka, Canada and
Korea have committed to adopt IFRS
from 2011
USA will adopt from 2014
IFRS compliance for Public
Interest Entities
Whose equity debt securities are listed on any
stock exchange
Bank, Financial institution, Mutual fund or an
Insurance Companies
Turnover exceeds Rs. 100 crores in the
financial year
Public deposits or borrowings from bank or
financial institution in excess of Rs. 25 crores
in previous year
Transition to IFRS
First year of reporting 01-04-2011 to 31-03-
2012
Comparative year 01-04-2010 to 31-03-2011
Date of transition 01-04-2010 beginning of
early period
Beneficiaries of
convergence with IFRS
§ Investors
§ Industries
§ Accounting Professional
§ Corporate World
Divergences between Indian
GAAP & IFRS
§ Legal and regulatory requirement
§ Present economic condition
§ Level of preparedness
Key Divergences
All business combination shall be accounted as
per purchase method at fair values
Negative goodwill arising on business
combination shall be accounted as income
instead of capital reserve
Intangible assets can be revalued only when
there is an active market for the same
Cont…
Interest income shall be recorded after
considering their associated expenses such
as loan processing fee, agent’s commission.
Provisions shall be created only to the extent
they relate to specified risk. No provisions are
permitted for future or expected losses
Prior period items shall be adjusted in the
opening balance of assets and liabilities and
equity of the earlier year
Suggestion for increased
convergence
Ø Political pressure on IASB should be avoided
Ø IASB should publicize standard developed by it
Ø Legislation should be passed
Ø Co-operation from local stock exchange
Ø Disciplinary action in case of non-compliance of
IFRS
Conclusion
Convergence with IFRS has received a lot of
flack from Indian trade and industry.
IFRS is definitely need of hour
Transition to IFRS will not be a swift and
painless process.
All the parties concerned with financial
reporting need to share the responsibility of
international harmonization and convergence
Thank You