First we need to understand the objective of Compliying with IFRS. Below is the extract from PWC publication to get an understanding "The International Accounting Standards Board and the US Financial Accounting Standards Board have been committed to converging IFRS and US GAAP since the Norwalk Accord of 2002. Many commentators have called for convergence to simplify financial reporting and reduce the compliance burden for listed companies, especially those with stock market listings in more than one jurisdiction and those who participate in cross-border, capitalmarket transactions. A major step in the movement to one set of global accounting standards is the Securities and Exchange Commission%u2019s 2007 proposal to drop the requirement for a US GAAP reconciliation by foreign private issuers that prepare their primary financial statements under full IFRS. Another significant step is the 2007 SEC Concepts Release on allowing domestic US registrants to use IFRS as an alternative to US GAAP. These potential changes, if they come to fruition, will significantly alter the international landscape of accounting. US capital-market participants have already started to show a much greater interest in IFRS, realising that it may replace US GAAP as the accounting language underlying future financial reporting and capital-market activity." India/ICAI should have representation,but not on the basis of population,but on the basis of business potential,remember,ourliteracyratei
i think there should atleast be an opportunity for discussion/brain storming session and then take suitable decision.ICAI should lead this.may be we can then have all memebers participate in one way or other.
always it was a mystry in indian accounting standards that whether this will be giving any best outputs as compared to other standards, but now the time has come where we have to take some firm steps towards mitigate that mystry.it would be better if experts and representative of our body will do the needful, and reduce the mystry. the writer of the above is a mumbai based chartered accountant.
I fully agree with the writer that we shoud be rule setters not just followers. ICAI has to think again before forcing (indirectly) the IFRS on the Indian Economy. Indian Accounting Standards have proven track record of giving the world a transperent financial reporting system, why to leave that in such a hurry and adopt the accounting standards which have a great defamous history behind.
RE:Why IFRS?
by devanjan datta on May 22, 2008 12:33 AM
due to lack of porper disclosure norms & valuation concepts Indian CAs along with business houses have repeatedly raped the understanding of financial statements..now time has come for justice.
RE:Why IFRS?
by RJ on May 21, 2008 11:14 AM
Look.. no body is forcing you.. they are trying to equip you with the latest happenings in the world. Do you want to be permanently part of third world.. Now the corporates are operating boundary less, consolidation of accounts will not be possible or will be tedious if the GAAPs are different. Off late AS are the replica of IAS and they are not independently designed in most of the cases..
Accounts is not different in India and US.. it should be the same.. there is no logic in telling capitalise forex loss.. Things are pretty different and we need to be part of the world..
Bravo, but i definitely agree with you, these pieces of advice would only fall on deaf ears. Our Institute is a step better than the local politicians who can only react and never be proactive, who are just self serving and have nothing to do with the good of the common man. I see an ultimate death of the Indian accounting profession in the short future unless our rule followers are either replaced with rule setters or themselves change into one.
RE:IFRS An Obsession of ICAI
by Subbaram Ranganathan on May 21, 2008 10:05 AM
ICAI have to change their approach to corporate governance issues...they are more interested in maintaining all the fee from clients and rarely they come with concepts and approaches to issues...i have been closely associated with the profession whilst abroad basically being a teacher/professor of accounting and audit and all my discussions with the top audit players...their one word answer...they have 'no Indian clients'...indians across the world do not practice anything called governance...may be still our in generic growth of family owned enterprises....if mukesh can earn Rs44 crores as salary from his own company...think of 'governance'...may God bless indian CAs.. Prof.Ranganathan Pune
Re: IFRS An Obsession of ICAI
by Mathi Dada on Nov 25, 2008 04:03 PM
Let us first analyse the need of IFRS in the Global accounting scenario. Lets take a practical live example as it happenned in our company. We were in need of huge funds which we were unable to raise in India so we went for ECB from an European Bank through a Zurich office, they had problems assessing our financials as it is prepared as per Indian AS. They demamnded a financial statements as per IFRS. This type of problem is common in all Companies in this modern era of globalisation. We have a need for common accounting practice. I strongly vote in favour of IFRS as I have faced the practical difficulty, it is the need of the hour. Affected persons may understand the need while those are still to come across such situation may appreciate the need. Thank You. Mathi Dada
that is the only problem of indians. We do not want to walk with the world but want to be orthodox. ICAI has taken some bold steps on IFRS and my friend is criticising this unnecessarily.
Does he know that whole EUROPE is following IFRS now.
RE:hello
by Mahesh Potti on May 21, 2008 10:02 AM
Boss you don't seem to have understood the theme and essence of what the author is trying to come out with. We were in past ruled physically by Westerners, now the difference is that we would be ruled by westerners in the financial domain. Unfortunately our country is only too happy to readily accept whatever western ideas & philosophy is dished out to us
RE:hello
by Kalpesh Chavda on May 21, 2008 10:10 AM
Point is very well articulated by the Author of the article. ICAI must have thought the implication on indian business practices..if they have they should explain tht to people at large
RE:hello
by abhijit kulkarni on May 21, 2008 10:06 AM
I agree with you... the whole article surprises me.... ICAI is a government body and it can not say that take our representatives .... the governing body issuing IFRS has to say that we would like to have services of so and so from ICAI for formualation of IFRS.... till then we have to adopt international practises to make accounts comparable....
