Other Clarification relating to Covergences of IFRS

Clarifications :

1) It is solely upon company whether to provide comparative figures of previous year (2010-11) in accordance with old Accounting Standards or to go for IFRS.

2) Companies having transition later then 01st April,2011 i.e;(Phase 2,Phase 3) companies can go for voluntary convergance on 01st April,2011

3) For Classification as Phase 1 effective date for satisfying the conditions will be 31st March,2009.

4) All Companies are covered on Stand alone basis ( No changes in classification even if one is associate, holding, subsidiary of another company).

5) However Reclassification can take place in case of Consolidation of Financial Statements contrary to what is written in above point.

6) Calculation of Networth for Eligibility/Applicability :

6a) For Companies other than Insurance Companies, Banks , NBFC's :
Date of Determination of Networth :31st March,2009
Formula : Networth = ShareCapital + Reserves -(Revaluation Reserves + Miscellaneous Expenditure+ P& LA/c. (Dr.balance).
*Companies incorporated after 31st March 2009 then for them date of determination of Networth will be first balance sheet date

6b) For Insurance Companies , Banks and NBFC's date of determination of Networth will be 31st March 2011 rest will be same as for other companies

7) Accounting Standards applicable to India will be converged IFRS and it is possible that which may not be consistent with actual IFRS so Accounting Standards to be followed will be converged and not actual IFRS.