India's Roadmap to Converge with the IFRS (For Companies other than Insurance, Banking & NBFC'S)

Background :

India's Roadmap to converge will be as announced by Ministry of Corporate Affairs (MCA),Government of India. Convergence will be in Stages as per this Roadmap. The Core Group, constituted by the Ministry of Corporate Affairs in the meeting held on 11th January,2011 agreed that there will be two set of Accounting Standards under sec 211(3C) of the Companies Act,1956.

Sets of Accounting Standards :

1) First set would compromise of Indian Accounting Standards which are to be converged with the IFRS which shall be applicable to specified companies.

2) Second set would compromise of the existing Indian Accounting Standards that would be applicable to other companies including Small and Medium Companies (SMCs).

Conditions for Specified Companies and date of transition from GAAP to IFRS :

First set of Accounting Standards will be applied in Phases which are as follows :

Phase 1 :These are companies which are part of NIFTY 50/SENSEX or are listed in overseas stock exhange  or companies irrespective of being listed or not have Net Worth in excess of 1000crores.
Date of Transition :01st April ,2011. 

Phase 2 :  These are Companies whether listed or not, have a Net Worth exceeding  Rs.500 Crores but less than Rs.1000 crores.
Date of Transition : 01st April, 2013.


Phase 3 : Listed Companies having Net Worth of Rs.500 Crores or less.
Date of Transition : 01st April, 2014.

Note :Other than the above companies that can be Unlisted Companies having Net worth of Rs.500 Crores or less or companies classifies as SMC's will be classified in Second Set of Accounting Standards and presently exempted from convergence.