• Register
Return to: Home > News > Standards > ICAI considers adopting IFRS, if convergence is successful

ICAI considers adopting IFRS, if convergence is successful

The Institute of Chartered Accountants of India (ICAI) could support the adoption of international financial reporting standards (IFRS) in the future, depending on how successful current convergence plans are.

Speaking at the IFRS Regional Policy Forum in New Delhi, ICAI president Ragu said "To begin with we should set the convergence mode and test the financial reporting standards on various corporate. India could look at adopting international accounting standards IFRS in the long term based on how the converged norms work out."

This may take some time, he warned, as "India is a diverse and fast growing economy, lot of issues have to be looked at before we look at adoption of IFRS."

International Accounting Standards Board chairman Hans Hoogervost also spoke at the forum and said that full adoption of IFRS would greatly strengthen the appeal of the Indian capital market to foreign investors.

New Companies Act

Separately, the ICAI set out a number of concerns it had over the Companies Act 2013, which passed in 2013 following decades of attempts.

The Act aims to fundamentally reform and modernise India's profession in an number of ways, including the introduction of mandatory corporate social responsability spending and the prohibition of a number of services provided by auditors.

One such concern is that the Act prohibits a number of services which are permitted by the ICAI for the auditor to perform, such as certain management items.

The ICAI was also concerned on the cap on the number of audits an auditor can undertake, and the rule that auditors are to report on whether a company has adequate financial controls in place, saying this would be expensive for small companies.

The ICAI also took issue with the constitution of the National Financial Reporting Authority (NFRA), which it said required a "lot of deliberations and discussions."

The NFRA's introduction has been contentious in the past, due to some of its powers, such as its ability to set standards and take disciplinary actions, are similar to those held by the ICAI.

Despite these concerns, the ICAI described the Companies Act 2013 as a "significant milestone," and that it showed the world India was committed to best practice.

Related story

India's Gov't proposes financial reporting body

India prepares for growth and change

Related link


Top Content

    Accountancy Europe: the winner takes it all

    Jonathan Minter spoke to Olivier Boutellis-Taft, chief executive officer at Accountancy Europe, about how technology could change the industry, and how training needs to keep up to enable the profession to develop

    read more

    Embracing global technology trends

    Accountancy Europe’s Digital Day 2018 found the European accounting profession looking to tackle the challenges presented by new technologies head on. Jonathan Minter reports from the day

    read more

    IMA Conference: automation of the audit

    At the annual conference of the Institute of Management Accountants (IMA) in Indianapolis, Deloitte partner Alex Smith gave a presentation on digital transformation in the profession. Joe Pickard spoke to Smith following the presentation to find out more about his views on the future of audit

    read more

    IMA Conference: technology and the human effect

    The annual conference of the Institute of Management Accountants (IMA) took place in Indianapolis this year. Members of the profession gathered to hear the latest from the institute and other market players, covering some of the challenges and opportunities the profession faces.

    read more

    The Caribbean: a digital paradise

    The ICAC hosted its 36th annual conference in June this year – very much looking to the future following a tough 2017 for the Caribbean. Jonathan Minter spoke with chief executive officer Misha Lobban Clarke

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.