Near Final Indian Accounting Standards (IND ASs)

• Ind AS 101 First-time Adoption of Indian Accounting Standards 
  
• Ind AS 102 Share based Payment 
  
• Ind AS 103 Business Combinations 
  
• Ind AS 104 Insurance Contracts
  
• Ind AS 105 Non current Assets Held for Sale and Discontinued Operations 
  
• Ind AS 106 Exploration for and Evaluation of Mineral Resources 
  
• Ind AS 107 Financial Instruments: Disclosures 
  
• Ind AS 108 Operating Segments 
  
• Ind AS 1 Presentation of Financial Statements 
  
• Ind AS 2 Inventories 
  
• Ind AS 7 Statement of Cash Flows 
  
• Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors
  
• Ind AS 10 Events after the Reporting Period 
  
• Ind AS 11 Construction Contracts 
  
• Ind AS 12 Income Taxes 
  
• Ind AS 16 Property, Plant and Equipment 
  
• Ind AS 17 Leases 
  
• Ind AS 18 Revenue
  
• Ind AS 19 Employee Benefits 
  
• Ind AS 20 Accounting for Government Grants and Disclosure of Government Assistance 
  
• Ind AS 21 The Effects of Changes in Foreign Exchange Rates 
  
• Ind AS 23 Borrowing Costs
  
• Ind AS 24 Related Party Disclosures 
  
• Ind AS 27 Consolidated and Separate Financial Statements 
  
• Ind AS 28 Investments in Associates 
  
• Ind AS 29 Financial Reporting in Hyperinflationary Economies 
  
• Ind AS 31 Interests in Joint Ventures 
  
• Ind AS 32 Financial Instruments: Presentation 
  
• Ind AS 33 Earnings per Share 
  
• Ind AS 34 Interim Financial Reporting 
  
• Ind AS 36 Impairment of Assets 
  
• Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets 
  
• Ind AS 38 Intangible Assets 
  
• Ind AS 39 Financial Instruments: Recognition and Measurement 
  
• Ind AS 40 Investment Property 
  

ICAI Awards for Excellence in Financial Reporting

The Institute of Chartered Accountants of India has awarded seventeen companies/entities for Excellence in Financial Reporting for the year 2009-10. The said awards were presented by Shri Salman Khurshid, Minister of Corporate Affairs, on the inaugural day of a three-day conference organized by the Institute.

Following are the awardees:

Sector	Award	Organisation
Banking Sector	Gold Shield	HDFC Bank Ltd.
	Silver Shield	ICICI Bank Ltd.
	Plaque for Commended Annual Report	Kotak Mahindra Bank Ltd.
Insurance Sector	Gold Shield	SBI Life Insurance Co. Ltd.
	Silver Shield	Birla Sun Life Insurance Co.
Manufacturing Sector (Turnover Rs. 500 crore or more)	Gold Shield	Dr. Reddy's Laboratories Ltd.
	Silver Shield	TATA Chemicals Ltd.
Manufacturing Sector (Turnover less than Rs. 500 crore)	Gold Shield	Not given to anyone
	Silver Shield	Ganesh Polytex Limited
Service Sector (other than banking & insurance) (Turnover   Rs. 500 crore or more)	Gold Shield	Tata Consultancy Services Ltd.
	Silver Shield	Persistent Systems Ltd. &
		Infrastructure Development Finance Company Limited (Jointly)
Service Sector (Turnover less than 500 crore	Gold Shield	Nucleus Software Exports Ltd
	Silver Shield	Info Edge (India) Limited
Not-for- Profit Sector Local Bodies	Gold Shield	The Akshaya Patra Foundation
	Silver Shield Plaque for Commended Annual Report	Vidya Dairy Surat Municipal Corporation

IFRS Convergence in India

The International Financial Reporting Standards (IFRS), as all we know, is posed as the global language of accountancy which is aimed to make the comparison and interpretation of financial statements across the world easier. (Mind you, only comparison will be simpler, LOL). This, however, is only possible if all the major countries prefer the IFRS reporting. Till now, more than 100 countries over the world have adopted the IFRS as their generally accepted standards of accounting and that number is only increasing with time.

India: 

India has also committed itself at the G-20 to make it's companies IFRS compliant from April 1st, 2011. Now, there are two ways to make the reporting structure of a country IFRS compliant. Either you adopt the IFRS in their entirety, or you converge your local standards in lines with the IFRS. The India has adopted the latter.

Convergence Vs. Adoption:

It means, India has not adopted the IFRS in full but it is revising it's Accounting Standards (AS) to get them in line with the international reporting standards. The premier standard setting body in India is the Institute of Chartered Accountants of India (ICAI) which has already issued the "Exposure Drafts of Converged Accounting Standards". They can be read here. 

The perceived reason by many for why India has not adopted the IFRS in it's original form is the concerns of India over some critical issues in the original standards. Indian Government and the Industry feel that it would not be possible to implement IFRS as they are in some areas like agricultural accounting, foreign exchange transactions, pension accounting etc. Therefore, India has preferred the convergence road-map. The final destination seems to be full adoption but it will take some time after once the businesses of the country get used to converged standards.

The Road-map for Convergence in India:

Road-map for convergence in respect of Companies other than Banking Companies, Insurance Companies and NBFCs

Phase-I
Conversion of opening balance sheets as at April 1, 2011, if the financial year commences on or after April 1, 2011:

• Companies which are part of NSE - Nifty 50
• Companies which are part of BSE - Sensex 30
• Companies whose shares or other securities are listeon stock exchanges outside India
• Companies, whether listed or not, which have a net worth in excess of Rs.1,000 crore

Companies covered in Phase I will prepare their financial statements for 2011 - 12 in accordance with converged Accounting Standards, but will show previous years’ figures as per the financial statements for 2010 - 11 i.e. as per non-converged Accounting Standards. However, the entity shall have the option to add an additional column to indicate what these figures could have been if converged Accounting Standards had been applied in that previous year.

Phase-II

Conversion of opening balance sheets as at April 1, 2013, if the financial year commences on or after April 1, 2013

• The companies, whether listed or not, having a net worth exceeding Rs. 500 crore but not exceeding Rs. 1,000 crore.

Phase-III

Conversion of opening balance sheets as at April 1, 2014, if the financial year commences on or after April 1, 2014

• Listed companies which have a net worth of Rs. 500 crore or less

Non-listed companies which have a net worth of Rs. 500 crore or less and whose shares or other securities are not listed on Stock Exchanges outside India and Small and Medium Companies (SMCs) will not be required to follow the notified Accounting Standards which are converged with the IFRS (though they may voluntarily opt to do so) but need to follow only the notified Accounting Standards which are not converged with the IFRS.

While the Insurance, Banking and NBF Companies are given some relaxation for now, they will also have to adopt the converged IFRS over the time in phased manner. Meanwhile, if you do have some comments on the above write-up, or want to share your views on the topic, please feel free to share the same here.

Thanks for your reading,

Reagrds
Parth Dave

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