Convergence with IFRS in India Strategy, Benefits and Challenges By: CA Kamal Garg
Convergence with IFRS in India
Strategy, Benefits and Challenges
By:
CA K
amal G
arg
Pre
sen
t S
tatu
s o
f In
dia
n A
cco
un
tin
g S
tan
da
rd
•P
rese
ntl
y, t
he
Acc
ou
nti
ng
Sta
nd
ard
s B
oa
rd (
AS
B)
of
the
In
stit
ute
of
Ch
art
ere
d
acc
ou
nta
nts
of
Ind
ia (
ICA
I) f
orm
ula
tes
Acc
ou
nti
ng
Sta
nd
ard
s (A
Ss)
ba
sed
on
th
e
IFR
Ss
kee
pin
g i
n v
iew
th
e l
oca
l co
nd
itio
ns
incl
ud
ing
le
ga
l a
nd
eco
no
mic
e
nv
iro
nm
en
t, w
hic
h h
ave
re
cen
tly
be
en
no
tifi
ed
by
th
e C
en
tra
l G
ove
rnm
en
t u
nd
er
the
Co
mp
an
ies
Act
, 1
95
6.
•A
cco
rdin
gly
, th
e A
ss d
ep
art
fro
m t
he
co
rre
spo
nd
ing
IF
RS
s to
ma
inta
in c
on
sist
en
cy
•A
cco
rdin
gly
, th
e A
ss d
ep
art
fro
m t
he
co
rre
spo
nd
ing
IF
RS
s to
ma
inta
in c
on
sist
en
cy
wit
h l
eg
al,
re
gu
lato
ry a
nd
eco
no
mic
en
vir
on
me
nt,
an
d k
ee
pin
g i
n v
iew
th
e l
eve
l o
f p
rep
are
dn
ess
of
the
in
du
stry
an
d t
he
acc
ou
nti
ng
pro
fess
ion
als
.
•In
so
me
ca
ses,
de
pa
rtu
res
are
ma
de
on
acc
ou
nt
of
con
cep
tua
l d
iffe
ren
ces
wit
h t
he
tr
ea
tme
nts
pre
scri
be
d i
n t
he
IF
RS
s.
Wh
at
is I
FR
S?
•IF
RS
is a
se
t o
f in
tern
ati
on
al
acc
ou
nti
ng
sta
nd
ard
s st
ati
ng
ho
w p
art
icu
lar
typ
es
of
tra
nsa
ctio
ns
an
d o
the
r e
ven
ts s
ho
uld
be
re
po
rte
d i
n f
ina
nci
al
sta
tem
en
ts.
•IF
RS
are
ge
ne
rall
y p
rin
cip
les-
ba
sed
sta
nd
ard
s a
nd
se
ek
to
avo
id a
ru
le-b
oo
k m
en
tali
ty.
Ap
pli
cati
on
of
IFR
S r
eq
uir
es
exe
rcis
e o
f ju
dg
me
nt
by
th
e p
rep
are
r a
nd
th
e a
ud
ito
r in
a
pp
lyin
g p
rin
cip
les
of
acc
ou
nti
ng
on
th
e b
asi
s o
f th
e e
con
om
ic s
ub
sta
nce
of
tra
nsa
ctio
ns.
•IF
RS
are
issu
ed
by
th
e I
nte
rna
tio
na
l A
cco
un
tin
g S
tan
da
rds
Bo
ard
.
•T
he
te
rm I
FR
S c
om
pri
ses
IFR
S is
sue
d b
y I
AS
B;
IAS
issu
ed
by
IA
SC
; a
nd
In
terp
reta
tio
ns
issu
ed
by
th
e S
tan
din
g I
nte
rpre
tati
on
s C
om
mit
tee
(S
IC)
an
d t
he
In
tern
ati
on
al
Fin
an
cia
l R
ep
ort
ing
In
terp
reta
tio
ns
Co
mm
itte
e (
IFR
IC)
of
the
IA
SB
.
Inte
rna
tio
na
l
Fin
an
cia
l
Re
po
rtin
g
Inte
rpre
tati
on
s
Inte
rna
tio
na
l
Acc
ou
nti
ng
Sta
nd
ard
(IA
S)
Inte
rna
tio
na
l
Fin
an
cia
l
rep
ort
ing
Sta
nd
ard
(IF
RS
)
IFR
SIn
terp
reta
tio
ns
Co
mm
itte
e (
IFR
IC)
Sta
nd
ing
Inte
rpre
tati
on
s
Co
mm
itte
e (
SIC
)
Sta
nd
ard
(IA
S)
Co
nv
erg
en
ce T
o I
FR
S
•T
he
IF
RS
iss
ue
d b
y t
he
In
tern
ati
on
al
Acc
ou
nti
ng
Sta
nd
ard
s B
oa
rd (
IAS
B)
are
incr
ea
sin
gly
be
ing
re
cog
niz
ed
as
Glo
ba
l R
ep
ort
ing
Sta
nd
ard
s.
•M
ore
th
an
10
0 c
ou
ntr
ies
such
as
cou
ntr
ies
of
Eu
rop
ea
n U
nio
n,
Au
stra
lia
, N
ew
Ze
ala
nd
an
d R
uss
ia c
urr
en
tly
re
qu
ire
or
pe
rmit
th
e u
se o
f IF
RS
s in
th
eir
co
un
trie
s.
•In
lin
e w
ith
th
e g
lob
al
tre
nd
, th
e I
nst
itu
te o
f C
ha
rte
red
Acc
ou
nta
nts
of
Ind
ia (
ICA
I)
ha
s p
rop
ose
d a
pla
n f
or
con
verg
en
ce w
ith
IF
RS
wit
h e
ffe
ct f
rom
Ap
ril
1,
20
11
.
•C
on
verg
en
ce t
o I
FR
S w
ou
ld m
ea
n I
nd
ia w
ou
ld j
oin
a l
ea
gu
e o
f m
ore
th
an
10
0
cou
ntr
ies,
wh
ich
ha
ve c
on
verg
ed
wit
h I
FR
S.
Wh
y C
on
ve
rge
nce
to
IF
RS
?
•A
sin
gle
se
t o
f a
cco
un
tin
g s
tan
da
rds
wo
uld
en
ab
le i
nte
rna
tio
na
lly
to
sta
nd
ard
ize
tra
inin
g a
nd
ass
ure
be
tte
r q
ua
lity
on
a g
lob
al
scre
en
.
•It
wo
uld
als
o p
erm
it i
nte
rna
tio
na
l ca
pit
al
to f
low
mo
re f
ree
ly,
en
ab
lin
g c
om
pa
nie
s
to d
eve
lop
co
nsi
ste
nt
glo
ba
l p
ract
ice
s o
n a
cco
un
tin
g p
rob
lem
s.
•It
wo
uld
be
be
ne
fici
al
to r
eg
ula
tors
to
o,
as
a c
om
ple
xity
ass
oci
ate
d w
ith
ne
ed
ing
to
un
de
rsta
nd
va
rio
us
rep
ort
ing
re
gim
es
wo
uld
be
re
du
ced
.
Me
an
ing
of
Co
nv
erg
en
ce w
ith
IF
RS
•C
on
verg
en
ce m
ea
ns
to a
chie
ve h
arm
on
y w
ith
IF
RS
s; i
n p
reci
se t
erm
s co
nve
rge
nce
ca
n b
e c
on
sid
ere
d “
to d
esi
gn
an
d m
ain
tain
na
tio
na
l a
cco
un
tin
g s
tan
da
rds
in a
wa
y
tha
t fi
na
nci
al
sta
tem
en
ts p
rep
are
d i
n a
cco
rda
nce
wit
h n
ati
on
al
acc
ou
nti
ng
st
an
da
rds
dra
w u
nre
serv
ed
sta
tem
en
t o
f co
mp
lia
nce
wit
h I
FR
Ss”
, i.
e.,
wh
en
th
e
na
tio
na
l a
cco
un
tin
g s
tan
da
rds
wil
l co
mp
ly w
ith
all
th
e r
eq
uir
em
en
ts o
f IF
RS
.
•B
ut
con
verg
en
ce d
oe
sn’t
me
an
th
at
IFR
S s
ho
uld
be
ad
op
ted
wo
rd b
y w
ord
, e
.g.,
re
pla
cin
g t
he
te
rm ‘
tru
e &
fa
ir’
for
‘pre
sen
t fa
irly
’, in
IA
S 1
, ‘P
rese
nta
tio
n o
f re
pla
cin
g t
he
te
rm ‘
tru
e &
fa
ir’
for
‘pre
sen
t fa
irly
’, in
IA
S 1
, ‘P
rese
nta
tio
n o
f F
ina
nci
al
Sta
tem
en
ts’.
Su
ch c
ha
ng
es
do
no
t le
ad
to
no
n-c
on
verg
en
ce w
ith
IF
RS
.
•T
he
IA
SB
acc
ep
ts i
n i
ts ‘
Sta
tem
en
t o
f B
est
Pra
ctic
e:
Wo
rkin
g R
ela
tio
nsh
ips
be
twe
en
th
e I
AS
B a
nd
oth
er
Acc
ou
nti
ng
Sta
nd
ard
s-S
ett
ers
’ th
at
“ad
din
g d
iscl
osu
re
req
uir
em
en
ts o
r re
mo
vin
g o
pti
on
al
tre
atm
en
ts d
o n
ot
cre
ate
no
nco
mp
lia
nce
wit
h
IFR
Ss.
Bu
t a
dd
itio
na
l d
iscl
osu
res
or
rem
ov
ing
of
op
tio
na
l tr
ea
tme
nt
sho
uld
be
m
ad
e c
lea
r so
th
at
use
rs o
f th
e I
FR
S a
re a
wa
re o
f th
e c
ha
ng
es.
IFR
S R
ep
ort
ing
In
In
dia
: P
rop
ose
d T
ime
lin
es
�R
ep
ort
ing
un
de
r IF
RS
, a
s p
rop
ose
d b
y I
CA
I, w
ou
ld b
e a
pp
lica
ble
fo
r a
cco
un
tin
g p
eri
od
s b
eg
inn
ing
on
or
aft
er
Ap
ril
1,2
01
1.
�T
he
fir
st s
et
of
IFR
S f
ina
nci
al
sta
tem
en
ts f
or
the
ye
ar
en
din
g M
arc
h 3
1,
20
12
wo
uld
re
qu
ire
pre
pa
rati
on
of:
�O
pe
nin
g b
ala
nce
sh
ee
t a
s o
n A
pri
l 1,
20
10
�C
om
pa
rati
ve f
ina
nci
al s
tate
me
nts
–ye
ar
en
din
g M
arc
h 3
1,
20
11
�R
ep
ort
ing
en
terp
rise
s w
ou
ld n
ee
d t
o e
nsu
re p
rep
are
dn
ess
fo
r IF
RS
re
po
rtin
g a
s e
arl
y a
s A
pri
l 20
10
.�
Re
po
rtin
g e
nte
rpri
ses
wo
uld
ne
ed
to
en
sure
pre
pa
red
ne
ss f
or
IFR
S r
ep
ort
ing
as
ea
rly
as
Ap
ril 2
01
0.
Pu
bli
c In
tere
st
Wh
ich
En
titi
es
wil
l b
e c
ov
ere
d u
nd
er
Co
nv
erg
en
ce S
tra
teg
y
•K
ee
pin
g i
n v
iew
th
e c
om
ple
x n
atu
re o
f IF
RS
s a
nd
th
e e
xte
nt
of
dif
fere
nce
s b
etw
ee
n t
he
e
xist
ing
AS
s a
nd
th
e c
orr
esp
on
din
g I
FR
Ss
an
d t
he
re
aso
ns
the
refo
re,
the
IC
AI
is o
f th
e
vie
w t
ha
t IF
RS
s sh
ou
ld b
e a
do
pte
d f
or
the
pu
bli
c in
tere
st e
nti
tie
s fr
om
th
e a
cco
un
tin
g
pe
rio
ds
be
gin
nin
g o
n o
r a
fte
r 1
st A
pri
l, 2
01
1.
List
ed
En
titi
es
Ba
nk
ing
En
titi
es
Insu
ran
ce
Co
mp
an
ies
Larg
e S
ize
En
titi
es
Pu
bli
c
Inte
rest
En
titi
es
Wh
ich
En
titi
es
are
Pu
bli
c In
tere
st E
nti
tie
s
a)
wh
ose
eq
uit
y o
r d
eb
t
secu
riti
es
are
list
ed
or
are
in t
he
pro
cess
of
list
ing
on
an
y s
tock
ex
cha
ng
e,
wh
eth
er
in I
nd
ia o
r
ou
tsid
e I
nd
ia;
or
d)
wh
ich
ha
s p
ub
lic
de
po
sits
an
d/o
r b
orr
ow
ing
s
fro
m b
an
ks
an
d f
ina
nci
al
inst
itu
tio
ns
in e
xce
ss o
f
rup
ee
s 2
5 c
rore
at
an
y t
ime
du
rin
g t
he
imm
ed
iate
ly p
rece
din
g
acc
ou
nti
ng
ye
ar;
or
e)
wh
ich
is
a h
old
ing
or
a
sub
sid
iary
of
an
en
tity
me
nti
on
ed
a)
to d
) p
oin
ts.
c) w
ho
se t
urn
ov
er
(ex
clu
din
g o
the
r in
com
e)
ex
cee
ds
rup
ee
s 1
00
cro
re
In t
he
im
me
dia
tely
pre
ced
ing
acc
ou
nti
ng
ye
ar;
b)
wh
ich
is
a b
an
k (
incl
ud
ing
a c
oo
pe
rati
ve
ba
nk
),
fin
an
cia
l in
stit
uti
on
,
a m
utu
al
fun
d,
or
an
insu
ran
ce e
nti
ty;
or
MC
A P
ress
Re
lea
se (
Jan
ua
ry 2
2n
d,
20
10
)
•T
he
firs
tse
to
fA
cco
un
tin
gS
tan
da
rds
(i.e
.co
nve
rge
da
cco
un
tin
gst
an
da
rds)
wil
lb
ea
pp
lie
dto
spe
cifi
ed
cla
sso
fco
mp
an
ies
inp
ha
ses:
-
“Ph
ase
-I:-
Th
efo
llo
win
gca
teg
ori
es
of
com
pa
nie
sw
ill
con
ve
rtth
eir
op
en
ing
ba
lan
cesh
ee
tsa
sa
t1
stA
pri
l,2
01
1,
ifth
efi
na
nci
al
ye
ar
com
me
nce
so
no
ra
fte
r1
stA
pri
l,2
01
1in
com
pli
an
cew
ith
the
no
tifi
ed
acc
ou
nti
ng
sta
nd
ard
sw
hic
ha
reco
nve
rge
nt
wit
hIF
RS
.T
he
seco
mp
an
ies
are
:-a
reco
nve
rge
nt
wit
hIF
RS
.T
he
seco
mp
an
ies
are
:-
a.
Co
mp
an
ies
wh
ich
are
pa
rto
fN
SE
–N
ifty
50
b.
Co
mp
an
ies
wh
ich
are
pa
rto
fB
SE
-Se
nse
x3
0
c.C
om
pa
nie
sw
ho
sesh
are
so
ro
the
rse
curi
tie
sa
reli
ste
do
nst
ock
exc
ha
ng
es
ou
tsid
eIn
dia
d.
Co
mp
an
ies,
wh
eth
er
list
ed
or
no
t,w
hic
hh
ave
an
et
wo
rth
ine
xce
sso
fR
s.1
,00
0cr
ore
s.”
IFR
S f
or
Sm
all
an
d M
ed
ium
Siz
ed
En
titi
es
(SM
Es)
•S
ME
s n
ee
d n
ot
ad
op
t a
ll t
he
IF
RS
as
it w
ill
be
to
o v
olu
min
ou
s fo
r th
em
.
•A
se
pa
rate
sta
nd
ard
fo
r S
ME
s w
ill
be
fo
rmu
late
d b
ase
d o
n t
he
IF
RS
fo
r S
ME
s
wh
ich
is
stil
l in
exp
osu
re d
raft
sta
ge
.
•T
he
pro
po
sed
sta
nd
ard
re
pre
sen
ts a
sim
pli
fie
d s
et
of
sta
nd
ard
s fo
r S
ME
's w
ith
•
Th
e p
rop
ose
d s
tan
da
rd r
ep
rese
nts
a s
imp
lifi
ed
se
t o
f st
an
da
rds
for
SM
E's
wit
h
dis
clo
sure
re
qu
ire
me
nts
re
du
ced
, m
eth
od
s fo
r re
cog
nit
ion
an
d m
ea
sure
me
nt
sim
pli
fie
d a
nd
to
pic
s n
ot
rele
van
t to
SM
E's
eli
min
ate
d.
•IF
RS
fo
r S
ME
s w
ill
be
ad
op
ted
in
to
to o
r w
ith
mo
dif
ica
tio
ns,
if
ne
cess
ary
.
•C
om
pli
an
ce w
ith
th
is I
FR
S f
or
SM
Es
is n
ot
ne
cess
ary
to
ma
ke I
nd
ia I
FR
S-
com
pli
an
t.
Form
at
of
IFR
S f
or
Ind
ia
•T
he
fo
rma
t o
f IF
RS
s to
be
ad
op
ted
fo
r p
ub
lic
inte
rest
en
titi
es
sho
uld
be
th
e s
am
e
as
tha
t o
f IF
RS
s, in
clu
din
g t
he
ir n
um
be
rs.
•T
he
nu
mb
ers
of
the
exi
stin
g A
cco
un
tin
g S
tan
da
rds
ma
y b
e g
ive
n i
n b
rack
ets
fo
r th
e
pu
rpo
se o
f e
asi
er
ide
nti
fica
tio
n.
•W
he
reve
r re
qu
ire
d,
a s
ect
ion
ma
y b
e a
dd
ed
at
the
en
d o
f th
e a
do
pte
d I
FR
S
•W
he
reve
r re
qu
ire
d,
a s
ect
ion
ma
y b
e a
dd
ed
at
the
en
d o
f th
e a
do
pte
d I
FR
S
ind
ica
tin
g t
he
In
dia
n l
eg
al
an
d r
eg
ula
tory
po
siti
on
.
•T
he
IF
RS
s w
he
n a
do
pte
d w
ill
als
o t
ake
in
to a
cco
un
t th
e I
nte
rna
tio
na
l F
ina
nci
al
Re
po
rtin
g I
nte
rpre
tati
on
s is
sue
d b
y t
he
IF
RIC
of
the
IA
SB
.
•O
nly
in
ra
re c
ircu
mst
an
ces
of
pu
bli
c in
tere
st a
ca
rve
ou
t fr
om
an
IF
RS
ma
y b
e
ma
de
.
En
do
rse
th
e I
FR
Ss
in
the
fo
rm o
f IF
RS
-eq
uiv
ale
nt
Ind
ian
Acc
ou
nti
ng
Sta
nd
ard
s
for
the
lo
cal
reg
ula
tory
fra
me
wo
rk w
ith
cha
ng
es
such
as
rem
ov
ing
op
tio
na
l
tre
atm
en
ts a
nd
ad
din
g d
iscl
osu
re
De
term
ine
wh
eth
er
ea
ch
IFR
S m
ee
ts s
pe
cifi
ed
crit
eri
a s
et
ou
t in
loca
l le
gis
lati
on
/re
gu
lati
on
Ro
le o
f A
SB
in
Po
st C
on
ve
rge
nce
Sce
na
rio
tre
atm
en
ts a
nd
ad
din
g d
iscl
osu
re
req
uir
em
en
ts,
wh
ere
ap
pro
pri
ate
Pre
sen
t th
e I
nd
ian
Acc
ou
nti
ng
Sta
nd
ard
s s
o d
ev
elo
pe
d f
or
ap
pro
va
l o
f N
ati
on
al
Ad
vis
ory
Co
mm
itte
e o
n A
cco
un
tin
g
Sta
nd
ard
s (
NA
CA
S)
for
the
pu
rpo
se o
f G
ov
ern
me
nt
no
tifi
cati
on
Be
ne
fits
of
Co
nv
erg
en
ce
Sin
gle
Re
po
rtin
gIn
cre
ase
Co
mp
ara
bil
ity
Acc
ess
to
Glo
ba
l
Ca
pit
al
Ma
rke
ts
Be
ne
fits
fo
r
Inv
est
ors
•C
on
verg
en
ce w
ith
IF
RS
eli
min
ate
s m
ult
iple
re
po
rtin
g
such
as
Ind
ian
GA
AP
, IF
RS
, U
S
GA
AP
•IF
RS
wil
l g
ive
mo
re c
om
pa
rab
ilit
y
am
on
g s
ect
ors
, co
un
trie
s a
nd
com
pa
nie
s.
•T
his
wil
l re
sult
in
mo
re t
ran
spa
ren
t
fin
an
cia
l re
po
rtin
g o
f a
co
mp
an
y’s
act
ivit
ies
wh
ich
wil
l b
en
efi
t
inve
sto
rs,
cust
om
ers
an
d o
the
r k
ey
sta
ke
ho
lde
rs in
In
dia
an
d o
vers
ea
s
•C
on
verg
en
ce w
ith
IF
RS
wil
l
en
ab
le I
nd
ian
en
titi
es
to h
ave
ea
sie
r a
cce
ss t
o g
lob
al c
ap
ita
l
ma
rke
ts a
nd
eli
min
ate
s b
arr
iers
to c
ross
-bo
rde
r li
stin
gs.
•It
en
cou
rag
es
inte
rna
tio
na
l
inve
stin
g a
nd
th
ere
by
le
ad
s to
mo
re f
ore
ign
ca
pit
al f
low
s to
th
e
•F
ina
nci
al s
tate
me
nts
pre
pa
red
usi
ng
a c
om
mo
n s
et
of
acc
ou
nti
ng
sta
nd
ard
s h
elp
inve
sto
rs b
ett
er
un
de
rsta
nd
inve
stm
en
t o
pp
ort
un
itie
s a
s
op
po
sed
to
fin
an
cia
l
sta
tem
en
ts p
rep
are
d u
sin
g a
dif
fere
nt
set
of
na
tio
na
l
Be
ne
fits
fo
r th
e
Ind
ust
ry
IFR
S b
ala
nce
sh
ee
t w
ill
be
clo
ser
to e
con
om
ic v
alu
eB
en
efi
ts t
o t
he
acc
ou
nti
ng
pro
fess
ion
al
Imp
rov
em
en
t in
fin
an
cia
l re
po
rtin
g
•C
on
verg
en
ce t
o I
FR
S w
ill
incr
ea
se t
he
op
po
rtu
nit
ies
for
Ind
ian
pro
fess
ion
als
in
ab
roa
d
as
the
y w
ill
be
ab
le t
o s
ell
the
ir s
erv
ice
s a
s e
xpe
rts
in
dif
fere
nt
pa
rts
of
the
wo
rld
•H
isto
rica
l co
st w
ill b
e s
ub
stit
ute
d
by
fa
ir v
alu
es
for
seve
ral
ba
lan
ce
she
et
ite
ms,
wh
ich
wil
l en
ab
le a
corp
ora
te t
o k
no
w it
s tr
ue
wo
rth
sta
ke
ho
lde
rs in
In
dia
an
d o
vers
ea
sm
ore
fo
reig
n c
ap
ita
l flo
ws
to t
he
cou
ntr
y.
dif
fere
nt
set
of
na
tio
na
l
acc
ou
nti
ng
sta
nd
ard
s
•C
urr
en
tly
co
mp
an
ies
ne
ed
to
pre
pa
re a
dd
itio
na
l fin
an
cia
l
sta
tem
en
ts b
ase
d o
n m
ult
iple
rep
ort
ing
fo
rma
ts t
o a
rise
cap
ita
l in
glo
ba
l ma
rke
t.
•C
on
verg
en
ce w
ith
IF
RS
wil
l
eli
min
ate
th
e r
eq
uir
em
en
t fo
r
du
al s
et
of
fin
an
cia
ls
sta
tem
en
ts a
nd
th
ere
by
red
uce
s th
e c
ost
of
rais
ing
fun
ds
by
th
e c
om
pa
nie
s
•B
ett
er
qu
ali
ty o
f fi
na
nci
al
rep
ort
ing
du
e t
o c
on
sist
en
t
ap
pli
cati
on
of
acc
ou
nti
ng
pri
nci
ple
s a
nd
imp
rove
me
nt
in
reli
ab
ilit
y o
f fi
na
nci
al s
tate
me
nts
.
•T
his
, in
tu
rn,
wil
l le
ad
to
incr
ea
sed
tru
st a
nd
re
lia
nce
pla
ced
by
inve
sto
rs,
an
aly
sts
an
d
oth
er
sta
ke
ho
lde
rs i
n a
com
pa
ny
’s f
ina
nci
al s
tate
me
nts
Ch
all
en
ge
s o
f C
on
ve
rge
nce
Ch
an
ge
to
re
gu
lato
ry
en
vir
on
me
nt
Lack
of
Pre
pa
red
ne
ssE
du
cati
ng
Sta
keh
old
ers
•F
or
the
su
cce
ss o
f co
nve
rge
nce
in
Ind
ia, c
ert
ain
re
gu
lato
ry a
me
nd
me
nt
is
req
uir
ed
.
•F
or
exa
mp
le,
Th
e C
om
pa
nie
s A
ct
(Sch
ed
ule
VI)
pre
scri
be
s th
e f
orm
at
for
pre
sen
tati
on
of
fin
an
cia
l sta
tem
en
ts f
or
Ind
ian
co
mp
an
ies,
wh
ere
as
the
pre
sen
tati
on
re
qu
ire
me
nts
are
sig
nif
ica
ntl
y d
iffe
ren
t u
nd
er
IFR
S.
So
, th
e
•A
do
pti
on
of
IFR
S b
y
ap
pro
xim
ate
ly 5
00
0 l
iste
d
com
pa
nie
s b
y 2
01
1 w
ou
ld r
esu
lt
in a
sig
nif
ica
nt
de
ma
nd
fo
r IF
RS
reso
urc
es.
Co
rpo
rate
In
dia
an
d
acc
ou
nti
ng
pro
fess
ion
als
ne
ed
to
be
tra
ine
d f
or
eff
ect
ive
mig
rati
on
to I
FR
S.
Ad
dit
ion
all
y a
ud
ito
rs
wo
uld
ne
ed
to
tra
in t
he
ir s
taff
to
•E
du
cati
ng
Sta
ke
ho
lde
rs
com
pri
sin
g o
f in
vest
ors
,
len
de
rs,
em
plo
ye
es,
au
dit
ors
, a
ud
it c
om
mit
tee
an
d e
tc w
ou
ld b
e a
big
cha
lle
ng
e a
s th
is w
ou
ld
req
uir
e a
co
nsi
de
rab
le t
ime
an
d e
ffo
rt
•S
ign
ific
an
t o
ne
-tim
e c
ost
s
of
con
vert
ing
to
IF
RS
(in
clu
din
g c
ost
s o
f in
tern
al
pe
rso
nn
el t
ime
, a
da
pti
ng
IT
syst
em
s, i
mp
lem
en
tin
g
revi
sed
re
po
rtin
g p
oli
cie
s
an
d p
roce
sse
s, t
rain
ing
pe
rso
nn
el a
nd
ed
uca
tin
g
Sig
nif
ica
nt
cost
Imp
act
on
fin
an
cia
l
pe
rfo
rma
nce
Co
mp
lex
ity
in
th
e
fin
an
cia
l re
po
rtin
g
pro
cess
sig
nif
ica
ntl
y d
iffe
ren
t u
nd
er
IFR
S.
So
, th
e
com
pa
nie
s a
ct n
ee
ds
to b
e a
me
nd
ed
in
lin
e w
ith
IF
RS
.
•U
nd
er
IFR
S,
com
pa
nie
s
wo
uld
ne
ed
to
incr
ea
sin
gly
use
fa
ir v
alu
e
me
asu
res
in t
he
pre
pa
rati
on
of
fin
an
cia
l
sta
tem
en
ts.
Co
mp
an
ies,
au
dit
ors
, u
sers
an
d
reg
ula
tors
wo
uld
ne
ed
to
ge
t fa
mil
iar
wit
h f
air
valu
e m
ea
sure
me
nt
tech
niq
ue
s
wo
uld
ne
ed
to
tra
in t
he
ir s
taff
to
au
dit
un
de
r IF
RS
en
viro
nm
en
t
•D
ue
to
th
e s
ign
ific
an
t
dif
fere
nce
s b
etw
ee
n I
nd
ian
GA
AP
an
d I
FR
S,
ad
op
tio
n o
f
IFR
S is
lik
ely
to
ha
ve a
sig
nif
ica
nt
imp
act
on
th
e
fin
an
cia
l po
siti
on
an
d
fin
an
cia
l pe
rfo
rma
nce
of
mo
st I
nd
ian
co
mp
an
ies
Co
mm
un
ica
tio
n o
f Im
pa
ct
of
IFR
S t
o i
nv
est
ors
•C
om
pa
nie
s a
lso
ne
ed
to
com
mu
nic
ate
th
e i
mp
act
of
IFR
S c
on
verg
en
ce t
o t
he
ir
inve
sto
rs t
o e
nsu
re t
he
y
un
de
rsta
nd
th
e s
hif
t fr
om
Ind
ian
GA
AP
to
IF
RS
.
pe
rso
nn
el a
nd
ed
uca
tin
g
inve
sto
rs,
an
aly
sts
an
d
me
mb
ers
of
the
bo
ard
)
Co
nce
ptu
al
dif
fere
nce
s
•F
or
exa
mp
le,
the
In
dia
n
sta
nd
ard
on
inta
ng
ible
s is
ba
sed
on
th
e c
on
cep
t th
at
all
inta
ng
ible
ass
ets
ha
ve a
de
fin
ite
life
, w
hic
h c
an
no
t
ge
ne
rall
y e
xce
ed
10
ye
ars
;
wh
ile
IF
RS
ack
no
wle
dg
e t
ha
t
cert
ain
inta
ng
ible
ass
ets
ma
y
ha
ve in
de
fin
ite
liv
es
an
d u
sefu
l
live
s in
exc
ess
of
10
ye
ars
are
no
t u
nu
sua
l
Leadership
Communication
Strategy
Cri
tica
l su
cce
ss f
act
ors
fo
r IF
RS
con
ve
rsio
n p
roje
cts
Resources
Knowledge
Project Management
Time
Cri
tica
l S
ucc
ess
Fact
ors
Categories of IFRS
Ca
teg
ori
zati
on
of
IFR
S b
y I
CA
I
�IC
AI
ha
s ca
teg
ori
ze t
he
IF
RS
in
fiv
e c
ate
go
rie
s b
ase
d o
n t
he
ext
en
t o
f ch
an
ge
s o
r th
e e
xte
nt
of
sup
po
rt r
eq
uir
ed
fro
m t
he
re
gu
lato
ry a
uth
ori
tie
s:
Category I
CategoryII
CategoryIII
Category V
Category IV
Category I A
Category I B
Category III A
Category III B
Ca
teg
ory
I I
FR
S
•IA
S 1
1,
Co
nst
ruct
ion
Co
ntr
act
s
Ca
teg
ory
I A
IFR
Ss
wh
ich
do
no
t h
ave
an
y d
iffe
ren
ces
wit
h t
he
co
rre
spo
nd
ing
In
dia
n
Acc
ou
nti
ng
Sta
nd
ard
s
•IA
S 2
In
ven
tori
es
•IA
S 7
,Ca
sh F
low
Sta
tem
en
ts
Ca
teg
ory
I B
IFR
S w
hic
h h
as
cert
ain
min
or
dif
fere
nce
s w
ith
th
e c
orr
esp
on
din
g
Ind
ian
Acc
ou
nti
ng
Sta
nd
ard
s
•IA
S 1
1,
Co
nst
ruct
ion
Co
ntr
act
s
•IA
S 2
3,
Bo
rro
win
g C
ost
s
•IA
S 7
,Ca
sh F
low
Sta
tem
en
ts
•IA
S 2
0,
Acc
ou
nti
ng
fo
r G
ove
rnm
en
t
Gra
nts
an
d D
iscl
osu
re o
f G
ove
rnm
en
t
Ass
ista
nce
•IA
S 3
3,
Ea
rnin
gs
Pe
r S
ha
re
•IA
S 3
6,
Imp
air
me
nt
of
Ass
ets
•IA
S 3
8,
Inta
ng
ible
Ass
ets
Ca
teg
ory
II
IFR
S
Ca
teg
ory
II:
IFR
Ss
wh
ich
ma
y
req
uir
e s
om
e t
ime
to
re
ach
a
leve
l of
tech
nic
al p
rep
are
dn
ess
by
IAS
18
, R
eve
nu
e
IAS
21
,Th
e E
ffe
cts
of
IFR
S 2
, S
ha
re-b
ase
d
IAS
40
, In
vest
me
nt
Pro
pe
rty
(Co
rre
spo
nd
ing
Ind
ian
Acc
ou
nti
ng
Sta
nd
ard
is
un
de
r p
rep
ara
tio
n)
leve
l of
tech
nic
al p
rep
are
dn
ess
by
the
ind
ust
ry a
nd
pro
fess
ion
als
kee
pin
g in
vie
w t
he
exi
stin
g
eco
no
mic
en
vir
on
me
nt
an
d o
the
r
fact
ors
IAS
21
,Th
e E
ffe
cts
of
Ch
an
ge
s in
Fo
reig
n
Exc
ha
ng
e R
ate
s
IAS
26
, A
cco
un
tin
g a
nd
Re
po
rtin
g b
y
Re
tire
me
nt
Be
ne
fit
Pla
ns
IFR
S 5
, N
on
-cu
rre
nt
Ass
ets
He
ld f
or
Sa
le a
nd
Dis
con
tin
ue
d O
pe
rati
on
s
(Co
rre
spo
nd
ing
Ind
ian
Acc
ou
nti
ng
Sta
nd
ard
is
un
de
r p
rep
ara
tio
n)
Pa
ym
en
t
(Co
rre
spo
nd
ing
Ind
ian
Acc
ou
nti
ng
Sta
nd
ard
is
un
de
r p
rep
ara
tio
n)
Ca
teg
ory
III
IF
RS
•IA
S 1
7,L
ea
ses
Ca
teg
ory
III
A
IFR
Ss
ha
vin
g c
on
cep
tua
l d
iffe
ren
ces
wit
h
the
co
rre
spo
nd
ing
In
dia
n A
cco
un
tin
g
Sta
nd
ard
s th
at
sho
uld
be
ta
ke
n u
p w
ith
th
e
IAS
B
•IA
S 1
2,
Inco
me
Ta
xes
Ca
teg
ory
III
B
IFR
Ss
ha
vin
g c
on
cep
tua
l d
iffe
ren
ces
wit
h t
he
corr
esp
on
din
g I
nd
ian
Acc
ou
nti
ng
Sta
nd
ard
s
tha
t n
ee
d t
o b
e e
xam
ine
d t
o d
ete
rmin
e
wh
eth
er
the
se s
ho
uld
be
ta
ke
n u
p w
ith
th
e
IAS
B o
r sh
ou
ld b
e r
em
ove
d b
y t
he
IC
AI
itse
lf
•IA
S 1
9,
Em
plo
yee
Be
ne
fits
•IA
S 2
7,C
on
soli
da
ted
an
d S
ep
ara
te
Fin
an
cia
l Sta
tem
en
ts
•IA
S 2
8,
Inve
stm
en
ts in
Ass
oci
ate
s
•IA
S 3
1,
Inte
rest
s in
Jo
int
Ve
ntu
res
•IA
S 3
7,
Pro
vis
ion
s, C
on
tin
ge
nt
Lia
bil
itie
s a
nd
Co
nti
ng
en
t A
sse
ts
•IA
S 2
4,
Re
late
d P
art
y D
iscl
osu
res
•IA
S 4
1,
Ag
ricu
ltu
re (
Co
rre
spo
nd
ing
Ind
ian
Acc
ou
nti
ng
Sta
nd
ard
is u
nd
er
pre
pa
rati
on
)
•IF
RS
3,
Bu
sin
ess
Co
mb
ina
tio
ns
•IF
RS
6,
Exp
lora
tio
n f
or
an
d E
valu
ati
on
of
Min
era
l Re
sou
rce
s
•IF
RS
8,
Op
era
tin
g S
eg
me
nts
Ca
teg
ory
IV
an
d V
IF
RS
•IA
S 1
, P
rese
nta
tio
n o
f F
ina
nci
al S
tate
me
nts
•IA
S 8
, A
cco
un
tin
g P
oli
cie
s, C
ha
ng
es
in
Acc
ou
nti
ng
Est
ima
tes
an
d E
rro
rs
•IA
S 1
0,
Eve
nts
Aft
er
the
Ba
lan
ce S
he
et
Da
te
Ca
teg
ory
IV
IFR
Ss,
th
e a
do
pti
on
of
wh
ich
wo
uld
re
qu
ire
cha
ng
es
in la
ws/
reg
ula
tio
ns
be
cau
se c
om
pli
an
ce w
ith
su
ch I
FR
Ss
is n
ot
po
ssib
le u
nti
l th
e r
eg
ula
tio
ns/
law
s a
re
am
en
de
d.
•IA
S 2
9,
Fin
an
cia
l Re
po
rtin
g in
Hyp
er-
infl
ati
on
ary
Eco
no
mie
s
Ca
teg
ory
V
IFR
Ss
corr
esp
on
din
g t
o w
hic
h n
o I
nd
ian
Acc
ou
nti
ng
Sta
nd
ard
is r
eq
uir
ed
fo
r th
e t
ime
be
ing
.
•IA
S 1
0,
Eve
nts
Aft
er
the
Ba
lan
ce S
he
et
Da
te
•IA
S 1
6,
Pro
pe
rty,
Pla
nt
an
d E
qu
ipm
en
t
•IA
S 3
2,
Fin
an
cia
l In
stru
me
nts
: P
rese
nta
tio
n
(Exp
osu
re D
raft
of
the
Co
rre
spo
nd
ing
Ind
ian
Acc
ou
nti
ng
Sta
nd
ard
ha
s b
ee
n is
sue
d)
•IA
S 3
4,
Inte
rim
Fin
an
cia
l Re
po
rtin
g
•IA
S 3
9,
Fin
an
cia
l In
stru
me
nts
: R
eco
gn
itio
n
an
d M
ea
sure
me
nt
(Exp
osu
re D
raft
of
the
Co
rre
spo
nd
ing
Ind
ian
Acc
ou
nti
ng
Sta
nd
ard
ha
s b
ee
n iss
ue
d)
•IF
RS
1,
Fir
st-t
ime
Ad
op
tio
n o
f In
tern
ati
on
al
Fin
an
cia
l Re
po
rtin
g S
tan
da
rds
•IF
RS
4,
Insu
ran
ce C
on
tra
cts
•IF
RS
7,
Fin
an
cia
l In
stru
me
nts
: D
iscl
osu
res
Wh
ich
wa
y o
f A
do
pti
on
of
IFR
S i
s p
refe
rre
d:
sta
ge
wis
e o
n t
he
ba
sis
of
cate
go
ry o
f IF
RS
or
all
at
on
ce f
rom
a s
pe
cifi
ed
fu
ture
da
te
•T
he
IC
AI
exa
min
ed
wh
eth
er
a s
tag
e-w
ise
ap
pro
ach
to
co
nve
rge
nce
sh
ou
ld b
e
foll
ow
ed
wh
ere
by
ce
rta
in I
FR
S a
re a
do
pte
d i
mm
ed
iate
ly (
Ca
teg
ory
I)
an
d c
ert
ain
o
the
r IF
RS
are
ad
op
ted
wit
hin
a s
ho
rt p
eri
od
of
tim
e,
say
tw
o y
ea
rs (
Ca
teg
ory
II
an
d I
II)
an
d t
he
ba
lan
ce s
tan
da
rds
are
ad
op
ted
on
ly w
he
n t
he
la
ws
an
d r
eg
ula
tio
n
are
ch
an
ge
d.
•H
ow
eve
r, t
he
IC
AI
con
clu
de
d t
ha
t su
ch a
sta
ge
-wis
e a
pp
roa
ch m
ay
re
sult
in
se
vera
l a
pp
lica
tio
n c
om
ple
xiti
es
be
cau
se m
an
y a
cco
un
tin
g s
tan
da
rds
are
in
ter-
rela
ted
. S
o,
ap
pli
cati
on
co
mp
lexi
tie
s b
eca
use
ma
ny
acc
ou
nti
ng
sta
nd
ard
s a
re i
nte
r-re
late
d.
So
, co
nsi
de
rin
g t
he
ch
all
en
ge
s to
tra
nsi
tio
n,
the
IC
AI
ha
s o
pte
d f
or
an
ap
pro
ach
w
he
reb
y a
ll I
FR
S s
ho
uld
be
ad
op
ted
fo
r th
e d
efi
ne
d e
nti
tie
s fo
r a
cco
un
tin
g p
eri
od
s co
mm
en
cin
g o
n o
r a
fte
r A
pri
l 1
, 2
01
1.
•T
he
IC
AI
be
lie
ves
tha
t th
is t
ran
siti
on
pe
rio
d t
ill
Ap
ril
1,
20
11
wil
l e
na
ble
all
p
art
icip
an
ts i
n t
he
fin
an
cia
l re
po
rtin
g p
roce
ss t
o h
elp
in
bu
ild
ing
th
e e
nv
iro
nm
en
t su
pp
ort
ing
th
e a
do
pti
on
of
IFR
S.
Pro
ject
Ma
na
ge
me
nt
for
IFR
S C
on
ve
rge
nce
Pro
ject
•C
om
ple
x ta
sks
are
ea
sie
r w
he
n d
ivid
ed
in
to m
an
ag
ea
ble
pie
ces
an
d i
t is
tru
e f
or
IFR
S c
on
verg
en
ce p
roje
ct a
lso
. P
roje
ct c
an
be
bro
ken
do
wn
in
to t
hre
e k
ey
ph
ase
s.
1.
Ide
nti
fy t
he
ke
y d
ate
s a
nd
th
e d
ate
of
tra
nsi
tio
n t
o I
FR
S
2 D
eve
lop
an
IF
RS
tra
inin
g p
lan
fo
r
Assess
Design
10
.P
rep
are
an
op
en
ing
IF
RS
ba
lan
ce
she
et
at
the
da
te o
f tr
an
siti
on
to
IFR
S
11
Exp
lain
th
e i
mp
act
of
tra
nsi
tio
n
fro
m p
revi
ou
s G
AA
P t
o I
FR
S a
s
req
uir
ed
by
IF
RS
1
12
Ap
ply
IF
RS
as
bu
sin
ess
as
usu
al.
5 R
ed
eve
lop
re
po
rtin
g m
an
ua
l i.e
., d
eve
lop
IFR
S a
cco
un
tin
g m
an
ua
l mo
dif
yin
g c
ha
rt o
f
acc
ou
nts
an
d c
on
tain
ing
de
tail
ed
inst
ruct
ion
s.
6 M
ea
sure
th
e i
mp
act
of
the
dif
fere
nce
s
ide
nti
fie
d o
n t
he
la
test
fin
an
cia
l pre
pa
red
un
de
r In
dia
n G
AA
P.
7 A
pp
ly la
test
ve
rsio
n o
f IF
RS
co
nsi
ste
ntl
y
8 A
pp
ly I
FR
S 1
wh
ich
de
als
wit
h f
irst
-tim
e
ad
op
tio
n o
f IF
RS
.
9 I
de
nti
fy p
erm
itte
d e
xem
pti
on
s fr
om
spe
cifi
ed
IF
RS
as
pe
r IF
RS
1.
2 D
eve
lop
an
IF
RS
tra
inin
g p
lan
fo
r
acc
ou
nti
ng
an
d f
ina
nce
pe
rso
nn
el.
3 I
de
nti
fy d
iffe
ren
ces
in t
he
re
leva
nt
acc
ou
nti
ng
po
lici
es.
4 I
de
nti
fy g
ap
s in
sy
ste
ms
an
d p
roce
sse
s
to g
ath
er
info
rma
tio
n n
ee
de
d u
nd
er
IFR
S a
nd
th
e c
urr
en
tly
ava
ila
ble
info
rma
tio
n.
Implement
Co
ncl
usi
on
•B
en
efi
ts d
eri
ved
fro
m c
on
verg
en
ce a
re l
ot
bu
t a
lso
th
e c
ha
lle
ng
es.
Th
e s
ucc
ess
of
the
co
nve
rge
nce
to
IF
RS
in
In
dia
wil
l de
pe
nd
on
co
op
era
tio
n f
rom
go
vern
me
nt,
re
gu
lato
rs a
nd
ta
x d
ep
art
me
nts
.
•U
ltim
ate
ly, it
is
imp
era
tive
fo
r In
dia
n e
nti
tie
s to
im
pro
ve t
he
ir p
rep
are
dn
ess
fo
r IF
RS
ad
op
tio
n
an
d g
et
the
co
nve
rsio
n p
roce
ss r
igh
t. G
ive
n t
he
cu
rre
nt
ma
rke
t co
nd
itio
ns,
an
y r
est
ate
me
nt
of
resu
lts
du
e t
o e
rro
rs i
n t
he
co
nve
rsio
n p
roce
ss w
ou
ld b
e d
etr
ime
nta
l to
th
e c
om
pa
ny
invo
lve
d a
nd
wo
uld
se
vere
ly d
am
ag
e in
vest
or
con
fid
en
ce i
n t
he
fin
an
cia
l sys
tem
.
•T
he
tra
nsi
tio
n t
o I
FR
S i
s li
kely
to
be
ch
all
en
gin
g f
or
corp
ora
te I
nd
ia.
Ho
we
ver,
if
the
•
Th
e t
ran
siti
on
to
IF
RS
is
like
ly t
o b
e c
ha
lle
ng
ing
fo
r co
rpo
rate
In
dia
. H
ow
eve
r, i
f th
e
tra
nsi
tio
ne
d is
pla
nn
ed
an
d m
an
ag
ed
su
cce
ssfu
lly,
it
wil
l g
en
era
lly b
e p
osi
tive
fo
r fi
na
nci
al
rep
ort
ing
in
In
dia
. T
his
wil
l im
pro
ve t
he
qu
ali
ty a
nd
tra
nsp
are
ncy
of
the
fin
an
cia
l re
po
rtin
g
pro
cess
an
d f
urt
he
r a
lig
n c
orp
ora
te I
nd
ia t
o t
he
glo
ba
l eco
no
my a
nd
th
e g
lob
al c
ap
ita
l m
ark
ets
.
•T
he
re i
s a
n u
rge
nt
ne
ed
to
ad
dre
ss t
he
se c
ha
lle
ng
es
an
d w
ork
to
wa
rds
full
ad
op
tio
n o
f IF
RS
in
In
dia
. T
he
mo
st s
ign
ific
an
t n
ee
d i
s to
bu
ild
ad
eq
ua
te I
FR
S s
kil
ls a
nd
an
exp
an
sive
kn
ow
led
ge
b
ase
am
on
gst
In
dia
n a
cco
un
tin
g p
rofe
ssio
na
ls t
o m
an
ag
e t
he
co
nve
rsio
n p
roje
cts
for
Ind
ian
e
nti
tie
s .
Th
is c
an
be
do
ne
by l
eve
rag
ing
th
e k
no
wle
dg
e a
nd
exp
eri
en
ce g
ain
ed
fro
m I
FR
S
con
vers
ion
in
oth
er
cou
ntr
ies
an
d in
corp
ora
tin
g I
FR
S i
nto
th
e c
urr
icu
lum
fo
r p
rofe
ssio
na
l a
cco
un
tin
g c
ou
rse
s.
Ho
w w
e c
an
Ass
ist
1.
IFR
S T
rain
ing
;
2.
Ide
nti
fica
tio
n o
f In
dia
n G
AA
P a
nd
IF
RS
Dif
fere
nce
s;
3.
Pre
pa
rati
on
of
Co
nve
rge
nce
Ma
nu
al;
4.
Do
cum
en
tati
on
of
IFR
S C
on
verg
en
ce;
4.
Do
cum
en
tati
on
of
IFR
S C
on
verg
en
ce;
5.
Pre
pa
rati
on
of
IFR
S F
ina
nci
al
Sta
tem
en
ts;
6.
IFR
S a
nd
In
dia
n G
AA
P R
eco
nci
lia
tio
n;
7.
Po
st I
mp
lem
en
tati
on
re
vie
w a
nd
fo
llo
w u
p
Ma
jor
Tra
inin
g C
lie
nte
le A
dd
ress
ed
•M
aric
o L
imited
;
•A
pollo T
yre
s Lim
ited
;
•K
irlo
skar
Bro
ther
s Lim
ited
;
•A
CC
Lim
ited
;
•Em
erso
n C
lim
ate
Tec
hnolo
gie
s (India
) Lim
ited
;
•L &
T Infras
truct
ure
Fin
ance
Co. Lim
ited
;
•Tam
il N
adu N
ewsp
rint an
d P
aper
s Lim
ited
;
•Super
Auto
Forg
e Lim
ited
;
•Par
adee
p P
hosp
hat
es L
imited
;
•U
ttar
Guja
rat V
IJ C
om
pan
y L
imited
;
•U
nio
n B
ank o
f In
dia
;
•N
TPC
Lim
ited