International Accounting Standards
International Accounting Corresponding
Standards Nos. Title Indian GAAP
IAS 1 Presentation of Financial Statements AS-1
IAS 2 Inventories AS-2
IAS 7 Cashflow Statements AS-3
IAS 8 Accounting policies, changes in accounting AS-5
estimates and errors
IAS 10 Events after the Balance Sheet date AS-4
IAS 11 Construction Contracts AS-7
IAS 12 Income Taxes AS-22
IAS 16 Property, Plant and Equipment AS-10&6
IAS 17 Lease AS-19
IAS 18 Revenue AS-9
IAS 19 Employees Benefits AS-15
IAS 20 Government Grants AS-12
IAS 21 Accounting for Foreign Exchange AS-11
IAS 23 Borrowing Cost AS-16
IAS 24 Related Party Disclosures AS-18
IAS 26 Retirement Benefit Plans ---
IAS 27 Consolidation of Financials AS-21
IAS 28 Investment in associates AS-23
IAS 29 Financial Reporting on Hyper Inflationary
Economics ---
IAS 31 Interest in Joint Ventures AS-27
IAS 32 Financial Instruments : Presentation AS-31
IAS 33 EPS AS-20
IAS 34 Interim Financial Reporting AS-25
IAS 36 Impairment of Assets AS-28
IAS 37 Provisions, Contingent liabilties and
Contingent Assets AS-4
IAS 38 Intangible Assets AS-26
IAS 39 Financial Instruments : Recognition and
Measurement AS-30
IAS 40 Investment Property AS-13
IAS 41 Agriculture ---
International Financial Reporting Standards :
IFRS no. Title Corresponding Indian
GAAP
IFRS-1 First time adoptation of IFRS Not Relevant
IFRS-2 Share Based Payments -----
IFRS-3 Business Combination AS-14
IFRS-4 Insurance Contracts ----
IFRS-5 Non-current Assets held for sale AS-24
and discontinyed operations
IFRS-6 Exploration for and evaluation of mineral
resources ----
IFRS-7 Financial Instruments: disclosures AS-32
IFRS-8 Operating segments AS-17
IFRS-9 Financial Instruments: Recognition and AS-30
and measurement
Sources :
1) Accounting Standards (D.S.Rawat)
2) THE CHARTERED ACCOUNTANTS JOURNAL
Showing posts with label Convergence of IFRS. Show all posts
Showing posts with label Convergence of IFRS. Show all posts
Thursday, December 23, 2010
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.
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.
India's Roadmap to Converge with the IFRS (For Insurance, Banking & NBFC'S Companies)
Insurance Companies : For all the Insurance companies date of transition : 01st April,2012.
Banking Companies :
1) Scheduled Commercial Banks, Urban Co-operative Banks having Networth in excess of Rs.300crs date of transition will be 01st April, 2013.
2) Scheduled Commercial Banks, Urban Co-operative Banks having Networth in excess of Rs.200crs but not in excess of Rs.300crs date of transition will be 01st April, 2014.
3)) Scheduled Commercial Banks, Urban Co-operative Banks having Networth not exceeding Rs.200crs and all the Regional Rural Banks will be covered under second set of Accounting Standards and there will be no convergence.
Non Banking Financial Institutions (NBFC's)
1) Companies which are part of NIFTY 50/SENSEX 30 and companies whether listed or not having Networth in excess of Rs.1000crs for them Date of Transition : 1st April,2013.
2) All listed and unlisted NBFC's which do not fall in the above category and which have Networth in excess of 500crs for them Date of Transition : 1st April,2014.
3) Unlisted NBFC's having net worth of Rs.500 crores or less will be exempt from convergence and will be covered in second set of Accounting Standards.
Other Notes : ICAI will issueand submit the converged Indian Standards with IFRS to NACAS (National Advisory Committee on Accounting Standards) by 30th June, 2010 for subsequent notification by the Ministry Corporate Affairs.
Banking Companies :
1) Scheduled Commercial Banks, Urban Co-operative Banks having Networth in excess of Rs.300crs date of transition will be 01st April, 2013.
2) Scheduled Commercial Banks, Urban Co-operative Banks having Networth in excess of Rs.200crs but not in excess of Rs.300crs date of transition will be 01st April, 2014.
3)) Scheduled Commercial Banks, Urban Co-operative Banks having Networth not exceeding Rs.200crs and all the Regional Rural Banks will be covered under second set of Accounting Standards and there will be no convergence.
Non Banking Financial Institutions (NBFC's)
1) Companies which are part of NIFTY 50/SENSEX 30 and companies whether listed or not having Networth in excess of Rs.1000crs for them Date of Transition : 1st April,2013.
2) All listed and unlisted NBFC's which do not fall in the above category and which have Networth in excess of 500crs for them Date of Transition : 1st April,2014.
3) Unlisted NBFC's having net worth of Rs.500 crores or less will be exempt from convergence and will be covered in second set of Accounting Standards.
Other Notes : ICAI will issueand submit the converged Indian Standards with IFRS to NACAS (National Advisory Committee on Accounting Standards) by 30th June, 2010 for subsequent notification by the Ministry Corporate Affairs.
Wednesday, December 22, 2010
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.
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.
International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS)
Introduction :
IASB ( International Accounting Standard Board ) has so far issued 41 International Accounting Standards out of which large number being revised , 12 being superseded and deleted. IAS are now classified as IFRS and already 9 IFRS has been issued so far.
Background :
IAS/IFRS were formed on 6th June,2002 when European Council of Ministers decided that all European Union (EU) companies listed on regulated market to prepare accounts in accordance with IAS/IFRS w.e.f 01/01/2005.
Current Scenario :
Now more than 100 countries follows IFRS/IAS.
Today Accounting world feels that IAS/IFRS should be common language for accounting since drafting of these standards is done at International level and considering global economy.
IASB ( International Accounting Standard Board ) has so far issued 41 International Accounting Standards out of which large number being revised , 12 being superseded and deleted. IAS are now classified as IFRS and already 9 IFRS has been issued so far.
Background :
IAS/IFRS were formed on 6th June,2002 when European Council of Ministers decided that all European Union (EU) companies listed on regulated market to prepare accounts in accordance with IAS/IFRS w.e.f 01/01/2005.
Current Scenario :
Now more than 100 countries follows IFRS/IAS.
Today Accounting world feels that IAS/IFRS should be common language for accounting since drafting of these standards is done at International level and considering global economy.
Accounting Standards
Meaning : As are policy documents issued by recognized accountancy body prescribing various aspects of measurement, treatment presentation and disclosure of accounting transactions. (eg:- ICAI in
INDIA,FASB in USA etc.)
Purpose : Bring uniformity in accounting practices with respect to measurement, treatment and disclosure.
Need for Harmonization in Accounting Standards
Harmonization : In accounting context harmonization may be defined as the process aimed at enhancing the comparability of financial statements produced in different countries accounting regulations. Its basically a way of standardizing accounting transactions.
Need for Harmonization :
1) Globalization and Liberalization
2) Emergence of Global Market Scenario (i.e.; Inter-country Borrowing and Investments)
3) Compliance of Statues of Different Countries.
4) Harmonization provide Common Measurement Parameters.
P.S. : Achieving complete harmonization may not be possible due to various economic, political, legal and cultural differences however massive deviations can be eliminated to large extent with harmonization.
Need for Harmonization :
1) Globalization and Liberalization
2) Emergence of Global Market Scenario (i.e.; Inter-country Borrowing and Investments)
3) Compliance of Statues of Different Countries.
4) Harmonization provide Common Measurement Parameters.
P.S. : Achieving complete harmonization may not be possible due to various economic, political, legal and cultural differences however massive deviations can be eliminated to large extent with harmonization.
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