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WHAT IS IASB?

The IASB is an independent accounting standard-settingbody, based in London. It consists of 14 members fromnine countries, including the United States.

It is funded by contributions from major accounting firms,private financial institutions and industrial companies,central and development banks, and other internationaland professional organizations throughout the world.

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RS Issues & Concerns

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INTODUCTION TO IFRS

International Financial Reporting Standards (IFRS) arestandards and interpretations adopted by theInternational Accounting Standards Board (IASB).

Many of the standards forming part of IFRS are knownby the older name of International Accounting Standards(IAS). IAS were issued between 1973 and 2001 by theboard of the International Accounting Standardscommittee (IASC). In April 2001 the IASB adopted allIAS and continued their development, calling the newstandards IFRS

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FEATURES OF IFRS

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GENERAL REQUIREMENTS

Each set of financial statements should identify thefollowinginformation :

name of the reporting entity whether the financial statements cover the individual

entity or a group of entities presentation currency and units balance sheet date reporting period any changes to this information during the period.

The financial statements are most useful if they aretimely. Entities should be able to issue financial

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Components of financial statements

The financial statements should include the followingprimary statements

balance sheet income statement

statement of changes in equity cash flow statement .

In addition the following items must be included in the

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Inventory

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Inventory

Receivables(debtors) Payables(creditors)

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Inventory

Receivables(debtors) Payables(creditors ) Income taxes

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Inventory

Receivables(debtors) Payables(creditors) Income taxes

Cash flow system

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Inventory

Receivables(debtors) Payables(creditors) Income taxes

Cash flow statement Revenue

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CONCERNS

IFRS has extreme bias towards fair value resulting in sharpfluctuations in earnings between financial periods.

Accounting for derivatives is difficult for ordinary people.

There will be regulatory overrides in implementation of IFRS withexemptions and changes, diluting very essence of IFRS.

Lack of commensurate industry specific guidance in IFRS.

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REASONS FOR GROWING IMPORTANCE OF IFRS

Global markets are becoming increasingly integrated. It is a new uniform accounting language bringing greater

clarity to financial reporting. It is one of the biggest revolutions in accounting industry. IFRS conversion offers companies an opportunity to

improve their business in several ways

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Implications for India regarding IFRS implementation

Fully converge with International Financial ReportingStandards from the accounting periods commencing on or after 1st April, 2011.

The decision is an important milestone as India will join

102 countries which are presently working according toIFRS.

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Need of IFRS In INDIA

Internationally-acceptable accounting standards. Overseas acquisitions by Indian companies. To gain confidence of overseas customers. To stay ahead of the competition

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Challenges in front of INDIA

Changes in Indian laws and decision processes. Comprehensive training for Financial statement makers or

auditors.

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Benefits of implementing IFRS

Increase in foreign investments. Overseas Job opportunities for Indian accountants.

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What should be done now?

Professional associations and industry groups shouldintegrate IFRS into their training materials, publications,testing, and certification programs.

Colleges and universities should include IFRS in their curricula.

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THANK YOU