PARMINDER SINGH M.PHIL (COMMERCE)

WELCOME

MEANING OF IFRS CONCEPT AND INTRODUTION NEED AND IMPORTANCE AROUND THE WORLD PART 2 INDIAN PERSPECTIVE OF IFRS LIST OF CONVERGED IND. AS. WITH IFRS AREAS OF DIFFERENCES BETWEEN IND. AS AND

IFRS PART 3 PROBLEMS AND CHALLENGES IN INDIA IFRS: ROAD AHEAD IN INDIA

IFRS

INTERNATIONAL FINANCIAL REPORTING STANDARDS ARE:

SINGLE SET OF HIGH QUALITY.

UNDERSTANDABLE. GLOBAL ACCOUNTING STANDARDS THAT PROVIDES HIGH QUALITY OF INFORMATION AND TRANSPARENCY IN FINANCIAL STATEMENTS TO HELP PARTICIPANTS OF WORLD CAPITAL MARKET TO MAKE BETTER ECONOMIC DECESIONS

MEANING AND INTRODUCTION

INTERNATIONAL ACCOUNTING STANDARDS CONTAIN HIGH QUALITY INFORMATION TRANSPARENT AND UNDERSTANDABLE ENABLES IN DECESION MAKING MAKING PRESENCE WORLDWIDE

MEANING

THESE IFRS ARE FORMULATED BY INTERNATIONAL ACCOUNTING STANDARD BORAD (IASB)

IN INDIA THESE IFRS ARE CONVERGED WITH INDIAN ACCOUNTING STANDARDS (IND. AS) WHICH ARE FORMULATED BY ACCOUNTING STANDARD BOARD (ASB 1977)

UNDER SUPERVISION OF ICAI AND ON THE RECOMMENDATIONS OF NATIONAL ADVISORY COMMITTEE ON ACCOUNTING STANDARDS (NACAS)

FORMATION OF IFRS

COMMON LANGUAGE INCREASED INTERNATIONAL TRADE INTEGRATED CAPITAL MARKETS MERGER AND ACQUISTIONS STRATEGIC ALLIANCES AND JOINT VENTURES AWARENESS AMONG INVESTORS

WHY IFRS

HARMONIZATION IN FINANCIAL STATEMENTS SINGLE SET OF POLICIES AND PRINCIPLES COMPARABLITY RELIABLITY QUALITY INFORMATION AND REDUCED COST

IMPORTANCE OF IFRS

CONCEPT PAPER OF ICAI 2007 : IN THIS

PAPER IT WAS DECIDED THAT INDIA WILL CONVERGE IND. AS WITH IFRS RATHER THAN TO ADOPT IFRS IN THEIR ORIGINAL FORM.

IFRS WERE TAKEN AS BENCHMARK AND INDIAN ACCOUNTING STANDARDS WERE CONVERGED WITH IFRS ACCORDING TO INDIAN LAWS AND LEGISLATION, ECONOMIC ENVIRONMENT,

AND REQUIRMENT OF BUSINESS AND INDUSTRIES.

INDIAN PERSPECTIVE OF IFRS

MINISTRY OF CORPORATE AFFAIRS, GOVT. OF INDIA:

ISSUED A PRESS NOTE IN 2010 THAT EXCEPT

BANKING, INSURANCE AND NON BANKING FINANCIAL COMPANIES ALL OTHER COMPANIES WILL ADOPT THESE CONVERGED IND. AS IN PROPER SEQUENCE

MCA

ACCORDING TO MCA THESE IFRS OR CONVERGED IND. AS WILL BE IMPLEMENTED AS BELOW:

o COMPANIES WHOSE TURNOVER IS MORE THAN 1000 CRORE WILL IMPLEMENT FROM APRIL 1, 2015

o COMPANIES WHOSE TURNOVER IS MORE THAN 500 CRORE BUT LESS THAN 1000 CRORE WILL IMPLEMENT FROM APRIL 1, 2016 IN PROPER SEQUENCE

PHASE OF IMPLEMENTATION

APRIL 1 2015 all companies

whose turnover is more than 1000 crore will implement IFRS from 1 April 2015

APRIL 1 2016All other companies

whose turnover is more than 500 crore but less than 1000 crore will implement these IFRS in proper sequence

PHASE OF IMPLEMENTATION

Serial no. IND. AS NO. IFRS TITLE

1 IND AS 101 IFRS1 First time adoption of ind as

2 IND AS 102 IFRS 2 Share based payment

3 IND AS 103 IFRS 3 Business combinations

4 IND AS 104 IFRS 4 Insurance contracts

5 IND AS 105 IFRS 5 Non current assets held for sale

6 IND AS 106 IFRS 6 Mineral resources

7 IND AS 107 IFRS 7 Financial instruments disclosure

8 IND AS 108 IFRS 8 Operating segments

9 IND AS 109 IFRS 9 Financial instruments

LIST OF CONVERGED ACCOUNTING STANDARDS

SERIAL NO. IND AS NO. IFRS NO. TITLE

10 IND AS 110 IFRS 10 Consolidated financial statement

11 IND AS 111 IFRS 11 Joint arrangements

12 IND AS 112 IFRS 12 Interest in other entities

13 IND AS 113 IFRS 13 Fair value measurement

14 IND AS 114 IFRS 14 Regulatory defferal accounts

15 IND AS 115 IFRS 15 Contracts with customers

16 IND AS 1 IAS 1 Presentation of financial statements

17 IND AS 2 IAS 2 Inventories

18 IND AS 7 IAS 7 Statement of cash flows

CONTD.

SERIAL NO. IND AS NO. IFRS NO. TITLE

19 IND AS 8 IAS 8 Accounting policies

20 IND AS 10 IAS 10 Events after reporting period

21 IND AS 12 IAS 12 Income taxes

22 IND AS 16 IAS 16 Property plant and equipments

23 IND AS 17 IAS 17 Leases

24 IND AS 19 IAS 19 Employees benefits

25 IND AS 20 IAS 20 Accounting for govt. Grants

26 IND AS 21 IAS 21 Effect of change in foreign exchange rate

27 IND AS 23 IAS 23 Borrowings costs

CONTD.

SERIAL NO. IND AS NO. IFRS NO. TITLE

28 IND AS 24 IAS 24 Related party disclosure

29 IND AS 27 IAS 27 Separate financial statements

30 IND AS 28 IAS 28 Investments in associates and jv

31 IND AS 29 IAS 29 Hyperinflationary economies

32 IND AS 32 IAS 32 Financial instruments presentation

33 IND AS 33 IAS 33 Earning per share

34 IND AS 34 IAS 34 Interim financial reporting

35 IND AS 36 IAS 36 Impairment of assets

36 IND AS 37 IAS 37 Provisions contingent liabilities

CONTD.

SERIAL NO. IND AS NO. IFRS NO. TITLE

37 IND AS 38 IAS 38 Intangible assets

38 IND AS 40 IAS 40 Investment property

39 IND AS 41 IAS 41 Agriculture

CONTD.

SERIAL NO. IND AS NO. IFRS NO. TITLE

1 IND AS 21 IAS 21 Effect of change in foreign exchange rate

2 IND AS 32 IAS 32 Financial instruments presentation

3 IND AS 39 IAS 39 Financial instruments measurement

4 IND AS 103 IFRS 3 Business combinations

5 IND AS 101 IFRS 1 First time adoption of Indian accounting standards

6 IND AS 18 IFRS 15 Revenue

7 IND AS 41 IFRS 41 Agriculture

DIFFERENCE BETWEEN IND AS AND IFRS

LACK OF SUITABLE ENVIRONMENT TRANING AND EDUCATION LEGAL AND REGULATORY FRAMEWORK FAIR VALUE MEASUREMENT DIFFERENCE BETWEEN GAAP AND IFRS

PROBLEMS AND CHALLENGES IN INDIA

In India ICAI is playing proactive role in convergence of IFRS in to Indian accounting standards and this concept of common accounting is in developing phase so far. We are facing number of challenges and problems in way of convergence and implementation of IFRS. But due to their importance and presence throughout the world IFRS will be converged in to Indian accounting standards in upcoming time to provide benefit to Indian economy and corporate sector

IFRS IN INDIA: ROAD AHEAD

To achieve objectives of proper implementation and adoption of these IFRS in Indian economy. Govt. Of India, ICAI and SEBI have to work in collaborative environment with a sense of integration so that needed platform can be provided to investors and various other participants of capital markets

CONTD.

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