Regulatory Support

Convergence of Indian Accounting Standards with IFRS

With a view to designing a definitive roadmap for convergence of Indian Accounting Standards with IFRS and co-ordinating the process, a Core Group was set-up by the Ministry of Corporate Affairs in July, 2009 under the Chairmanship of the Secretary, Ministry of Corporate Affairs with participation from Ministry of Finance, C&AG, RBI, SEBI, IRDA, PFRDA, ICAI, NACAS and industry representatives. Further, two Sub-groups were also constituted. First Sub-group was set-up under the Chairmanship of Mr. Y. H. Malegam, with a view to identifying the various legal and regulatory changes required for convergence and to prepare a roadmap for achieving the same. Second Sub-group, comprising of industry CFOs, was also set-up under the Chairmanship of Mr. T V Mohandas Pai, Director, Infosys Technologies Ltd. to interact with various stakeholders from business and industry to understand their concerns on the issue of convergence with IFRS, identify problem areas and ascertain the preparedness of the industry for such convergence. IICA has been providing regulatory and secretarial support to the Core Group for achieving convergence of Indian Accounting Standards with IFRS.

Pursuance to the decision taken by the Core Group, the Roadmap for convergence of Indian Accounting Standards with IFRS in respect of companies has been issued by the Ministry of Corporate Affairs vide Press Release - 2/2010 No. 1/1/2009-IFRS dated 22nd January, 2010 available at http://www.mca.gov.in/Ministry/press/press/press_release_22Jan_8Feb2010.pdf. 
At a meeting of the Core Group held on 29th March, 2010 under the chairmanship of Shri R. Bandyopadhyay, Secretary, Ministry of Corporate Affairs at Shastri Bhawan, New Delhi, also attended by the officials from Ministry of Finance, SEBI, RBI, IRDA, C&AG, PFRDA, ICAI, Industry representatives and other experts, the Core Group deliberated and approved the Roadmap recommended by Sub-Group I in respect of insurance companies, banking companies and non-banking finance companies. The Press Release dated 31st March, 2010 issued by the Ministry of Corporate Affairs giving roadmap in respect of insurance companies, banking companies and non-banking finance companies is available at http://www.pib.nic.in/release/release.asp?relid=59989. The Core Group also expressed satisfaction about the progress being made in developing necessary capacity building measures and creating awareness on the matter and expressed confidence on the implementation of roadmap in a timely and consultative manner.