• Register
Return to: Home > News > 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

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more

    FASB: a quest for simpler standards

    FASB chair Russell Golden addressed the IMA 2019 Annual Conference and Expo at the Sheraton San Diego Hotel and Marina, California, on 18 June. IMA immediate former chair-emeritus Alex Eng acted as moderator. Joe Pickard reports.

    read more

    The future of audit, and how to get there

    Two recent reports peer into the future of the audit profession. One analyses what an audit should offer, while the other looks at how the audit process will be carried out. Robin Amlôt takes a closer look at both.

    read more

    EFAA elects new president, focuses on digital future

    EFAA’s new president, Salvador Marin, outlined his key priorities for the next two years at the organisation’s 2019 annual general meeting, while outgoing president Bodo Richardt offered advice. Robin Amlôt reports.

    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.