It doesn't matter whether IFRS or AS because there will surely be ways to get around the standards. Besides, the parallel economy and business is not affected by this standards, because no standard applies to what is out of books.
RE:IFRS or AS does it matter ?
by devanjan datta on May 22, 2008 12:11 AM
but sir keeping all things apart..financial instrument accounting is still not well matured as per AS..our system still lacks advance accounting function like derivative accounting etc. apart from this most of the indian companie do maintain 2 sets of books..one as per AS and one as per US GAAP or IFRS..this leads to huge costs and also may lead to relative mismatch of figures.
You say Fair value accounting that is the bedrock of the IFRS is not suitable for India? Why is it not suitable for India?
Failure to adopt fair value accounting results in EPS of shares like DLF, Unitech and Parsvanath to show figures such as Rs. 2, Rs. 3 etc. In such a scenario, the valuation of the share can only depend on speculation, rumours and inside information. Is that what the Indian economy is based on?
Be real. ICAI is not represented on the IFRS is another matter. Pursue that matter and everyone will agree. However, do not try to say that the IFRS which is going to be the accounting language of tomorrow, is not suitable for the Indian economy.
Indian accounting standard are copy of Accounting standards. One president of ICAI was heard addressing a question in GMCS classes, that why does ICAI copy IAS ? that, it would cost a lot of money to develop our own standard, instead why not copy and customise, thats an easier cost effective route. Demand for debate and professional opinion is well reasoned in a democracy. In case IFRS improves disclosures on financial statements it shall be a good move. A closer reading of Big companies annual reports like Reliance petroleum would reveal that they have minimum disclosure policy, which means that accounting standards are just a formality. Maybe IFRS would improve this aspect.
RE:IFRS vs indian AS
by devanjan datta on May 22, 2008 12:19 AM
well u said it..adopting IFRS has 2 benefits ..first it reduces the cost for developing new stanadards..secondly ..IFRS are perfect in most economic conditions..hence simple cntrl C cntrl v will do no harm..infact it will safeguard our people ..our country from activities of corrupt CAs.
IFRS is the real opportunity for Indian Professionals. When the whole world will be governed by one standards, there would be greater chance for outsourcing to India.
Further Standardisation is the buzz of the day & the talk of the town whereever you see there is standardisation.
IFRS presents financial statements on Fair value rather then putting these on conservative nature.
I agree that IFRS should not be considered as sacrosant but still there should be some common body for accouting principles to be used across globe.
As per an estimate IFRS will increase investmetn in India 4 fold.
This article is dann foolish. this is typical stand taken by those who are reluctant to change. IFRS is no doubt a better reporting standard based mainly on fair value approach and most of my fellow professionals will vouch for this.
The author is making a joke of himself. Mr. Prabhakar, do you know that most of the Indian accounting standards are verbatum the IFRS (except for the examples where the pound is replaced by Rs.). Why dont you write an Article about that too. It is not that IFRS are the benchmark in accouting standards but they are definitely the best available as of now. So why not adopt the best available practice? Or are you scared Mr. Prabhakar that your CA practice is going to crash because of the propsoed new standards. Wake up and write responsibly Mr. Prabhakar.
RE:Poor chap...........the author really has some problems!!
by RJ on May 21, 2008 11:07 AM
You are right.. look at the posts by different people.. some people even dont know the long form of CA and post some junk message. The whole world is moving towards the unified accounting practice and IFRS is the only solution for comparability in the accounting reports. A change in GAAP will change the whole financials and the end user will be at dilemma about the authenticity despite of the disclosure of application of AS
RE:Does author know whole europe, africa, middle east , far east FOLLOW IFRS
by Venkatesh Ramachandran on May 21, 2008 11:10 AM
Oh is it? There are countries that allow even trade of narcotics freely and legitimately. Then why not follow such countries as an example.
What the author is telling is that ICAI is not even officially represented in IFRS and has briefly laid out some minuses of following it. Secondly has the ICAI ever consulted its members even assuming that it is good for the economy? Finally the constitution of the IFRS is suspect as laid out by the author - so let beware of the same.
RE:RE:Does author know whole europe, africa, middle east , far east FOLLOW IFRS
by malvika on May 21, 2008 12:10 PM
Mr .Venkatesh, do you know that most of our IAS are nearly verbatim copy ( i mean exact sentenses ) ..some 50 % some more than 70 % ...??? ..sp what the fuss about , If you are CA iam sure you should have known this . Regarding representaion , ICAI never bothered to accept IFRS or earlier IAS issued by them ,Now when IFRS is accepted by most part of world( other than US) , no need to cry that we are not represented in it .. ungalluku purinjirukkumnu ninaikiren
Largest body you say??......... Great man........ May i ask of whom........ Full of incompetent professionals who dont even know how to recognise revenue.....
Dear Mr Sharma, Very well said that whole of Europe is following IFRS but does that mean we should also blindly follow the same disregarding our economical/financial/social structure. Till now we boast of our ICAI as an independent body but current secnario do raises some doubts???
