• Register
Return to: Home > News > Standards > India to pass IFRS convergence after election

India to pass IFRS convergence after election

ICAI president Raghu: "India is ready for IFRS convergence”
India, vital stats

The government elected in the forthcoming Indian general election will make the final decision on the country's convergence with IFRS issued by the International Accounting Standards Board.

The Institute of Chartered Accountants of India (ICAI) president K Raghu told The Accountant India is "ready for convergence" after the ICAI has conducted "a robust standard-setting process" in the past few years to develop its IFRS-converged Indian Accounting Standards (Ind AS).

Any decision on the adoption will, however, be taken after the Indian general election, which is scheduled in nine phases between April and May as more than 814m people are called to the polls.

"We are ready with the new standards. We are just waiting for the government to announce the day. We have elections coming up. The new government would ask us for our feedback as accounting regulators and then it will take a final decision on the recommendations we give," Raghu said.

Raghu said the new Companies Act, which will come into effect from 1 April, represents the right sign to start the convergence process in India. He noted, though, that ICAI supports converged standards, rather than adoption of IFRS. In that respect, Ind AS have certain adjustments to reflect the country's peculiarities.

"We don't have a 'big-bang' approach to IFRS. India is a peculiar, big country with lots of corporates. It would be a huge impact if we went for full adoption," he said.

Asked about the recent developments in the US, which put on hold IFRS convergence projects with US GAAP on standards such as accounting for insurance contracts, Raghu said ICAI doesn't want to be isolated, but rather aligned with the rest of the world.

Expansion plans
Raghu, who was elected ICAI president in February, said one of his priorities is to continue the institute's efforts to support the Indian accountancy profession abroad.

"We have 16,000 members working in various countries, and 22 chapters around the world to serve the interest of these professionals. In our agenda is to help more young professionals to go overseas," Raghu said.

In particular, the ICAI has strong links with the countries of the Gulf region. According to Raghu, the institute has 10,000 members based in that region, with more than one thousand just in Dubai.

Raghu, who was interviewed for The Accountant's forthcoming annual World Survey, identified as a global trend the need for professional accountants to be "dynamic in their knowledge" in order to adjust and meet industry demands.

Raghu added that while IFRS is expanding globally, he believed there is a huge shortage of IFRS professionals, seeing this as an opportunity for ICAI young members to specialise on IFRS consulting services.

Another trend observed by Raghu is the transformation of financial reporting, including the developments made last year in sustainability reporting and integrated reporting.

"With a lot of foreign direct investments coming in, developing countries are keen to follow the pattern of reporting in other countries so that they are able to attract foreign capital," Raghu added.

Related stories

ICAI considers adopting IFRS, if convergence is successful

World report 2012: A year of worldwide innovation

Top Content

    Choosing the right location can have cast-iron benefits

    As Game of Thrones, one of the biggest television shows of all time, comes to an end, Joe Pickard looks at how tax incentives offered to television and film production companies help the wider economy.

    read more

    Primary financial statements: a game changer in reporting?

    International Accounting Standards Board chair Hans Hoogervorst delivered a speech at the Seminario International sobre NIIF y NIF, organised by the Consejo Mexicano de Normas de Información Financiera in Mexico. The Accountant presents the highlights.

    read more

    FASB readies standards for the netflix generation

    The US Financial Accounting Standards Board (FASB) has updated its accounting standard for entertainment, with a specific eye on keeping up to date with how episodic content, such as television programmes, is consumed in the modern world. Jonathan Minter reports.

    read more

    Brexit: why it takes two to tango

    Former TA editor Vincent Huck, now editor of Insurance Asset Risk, looks at why Brexit might unleash geopolitical intrigue in Europe’s accounting standard-setting scene – and why IFRS 17 will be an incredible source of opportunity for firms in the coming years.

    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.