IFRS- AN INTRODUCTION

Written By CA. Ankit Bhargava

Presented by CA. ASHOK SETH

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BY YEAR 2011 INDIA WOULD BE IFRS CONVERGENT

(as per Concept Paper approved by Council)

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HISTORY

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•International Federation of Accountants (IFAC)

•International Accounting Standard Committee (ISAC)

•Standards Interpretation Committee (SIC)

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TRANSITION

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Oct 2002

•IASB & FASB agreed on convergence of US GAAP & IAS

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IASB

Adopted 41 International Accounting Standards (IAS) and Interpretations issued by IASC- even today are known as IAS. (11 since withdrawn)

In total till date 7 IFRS have been issued by IASB.

These 7 IFRS and 41 IAS are known as IFRS

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Reco

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ADVANTAGES OF CONVERGANCE

Increased Global Market for Indian CA Making Investments in India easier Better Benchmarking for Indian

Companies. Indian Corporate sector becoming Global

player. Listing on exchanges abroad Enhance the Communication of Financial

results

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PROBLEMS IN CONVERGANCE

Re-training of professionals and business entities

Problems for SME sector Co- Law and Taxation related Transition issues Country/legal specific issues

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OVERVIEW OF IFRSIFRS-1 First Time Adoption of IFRS

IFRS-2 Share Based Payments

IFRS-3 Business Combinations

IFRS-4 Insurance Contracts

IFRS-5 Non Current Assets held for sale and discontinued operations

IFRS-6 Exploration for and evaluations of Mineral Assets

IFRS-7 Financial Instruments- Disclosures

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