Overview of IFRS & opportunities for Company Secretaries

Speakers logo Overview of IFRS & opportunities for Company Secretaries Rammohan Bhave mohanbhave@gmail.com 9004043365 & 9322249833 6th November 2009

IFRS OVERVIEW & OPPRTUNITIES FOR CS PROFESSIONALS IFRS OVERVIEW Overview of IFRS and opportunities for Company Secretaries Session: Best Practices in Financial / Non-Financial Disclosures OR SHOULD IT BE Session: Practices in Financial / Non-Financial Disclosures/ Best Non-disclosures

COMPLIANCES / DISCLOSURES WHOSE RESPONSIBILITY? OF COURSE COMPANY SECRETARIES IT’S HISTORICAL CHALLENGE & OPPORTUNITY WITH HUGE FINANCIAL DISCLOSURES AND MORE SO NON-FINANCIAL DISCLOSURES SOMEBODY ASKED ME WHAT IS NOT TO BE DISCLOSED?????

Disclosures – dilemma world over Creative Accounting Corporate Governance

disclosures Direct resp. e.g. valuer name Huge number Reopen Prior period adjustments PROBABLE

Creative accounting VS IFRS Securitisation of debts NPA TREATMENTS Revenuerecognition IFRS Prior period items Historical costs Unlisted & private subsidiaries Controlled entities JVs & associates

Form vs substance:revenue recognition Legal contract Substantially Consumed

FINANCIAL INSTRUMENTS Fair value Thru P & L Held to maturity Loans & receivables Available For sale SMEs 2 classes only

Why M & A do not happen thru balance-sheets? WHY VALUATIONS ARE REQUIRED AT ALL? BECAUSE

OLD DEFINITION OF BALANCE-SHEET Shee(i)t of Balances from LEDGER IFRS takes journey to Financial reporting (IFRS)

DUE DILIGENCE & VALUATIONS GETTING SUBSTITUTED BY IFRS CONVERGED ACCOUNTS

WHAT IS AUTHENTICATION? WITNESSING COMPANY BILL WILL REMOVE THIS AFTER ONE OR TWO YEARS

MAJOR OPPORTUNITIES FAIR VALUE CONSOLIDATIONS – RELATED PERSON – CONTROLLED ENTITY HUGE DISCLOSURES – 70 TO 90% UP EUROPE EXPERIENCE, INDIA EXPECTED TO BE 2.5 TIMES UP FINANCIAL INSTRUMENTS – 4 CATEGORIES SUBSTANCE OVER FORM – LOANS, LEASES, USEFUL LIFE (PPE), WARRANTIES, ESOP, EXTENDED CREDIT TERMS, OFF-BALANCE-SHEET ITEMS

COMPANY Vs ENTITY ICSI OR IGESI INSTITUTE OF COMPANY SECRETARIES OF INDIA INSTITUTE OF GROUP ENTITIES SECRETARIES OF INDIA COMPANY SECRETARY OR GROUP ENTITIES SECRETARY

APPROACH CHANGES PROFIT AS A CENTER FIGURE TO EQUITY WORTH AS A CENTER FIGURE

OLD CONCEPT PREPARE PROFIT AND LOSS CARRY BALANCE TO BALANCE-SHEET BALANCE-SHEET MUST TALLY PREPARE BALANCE-SHEET (SOFP) CARRY DIFFERENCE TO P & L (SOCI) – SEE IF IT TALLIES

IFRS KNOWLEDGE not to be few people's monopoly ICSI ALREADY SPREADING THRU E-LEARNING SHOULD GET INTO E-LEARNING MODE QUICKLY ON IFRS KNOWLEDGE BANK VC – WEBINARS ARE GREAT TOOLS

WHOSE BABY? SO WHO SHOULD DO THIS OF COURSE WE ALL, WITH OUR LEADERS SPREAD (TOTAL COMPLIANCE) IFRS TO MASSES – INCLUDING SMALL CITIES SURPRISED???

LET ME SHARE 2 RAJUs did not follow corporate governance, transparency IFRS & OTHER LAWS are tools for Our 2 RAJUs to implement it (President Datla RAJU & Vice-president RAJU Khanvalkar) STORY OF RAJUs vs RAJUs

SO DEAR LEADERS BOTH THE RAJUS MY APPEAL TO PRESIDENT AND VICE-PRESIDENT IS OUR INSTITUTE ICSI A PUBLIC INTEREST ENTITY? YES CERTAINLY LET US SET EXAMPLE BY CONVERTING INSTITUTE ACCOUNTS TO IFRS CONVERGED ACCOUNTS

Opportunites for company secretaries CRO – CHIEF RISK OFFICER CCO – CHIEF COMPLIANCE OFFICER CDO – CHIEF DISCLOSURE OFFICER CTO – CHIEF TRANSPARENCY OFFICER CGO – CHIEF GOVERNANCE OFFICER

2nd NOV JAIPUR STORY WHAT IS IMPACT OF IOC MISHAP AND ROLE OF CS? ONE MORE LAW SAFETY LAWS ADDED TO ECONOMIC LEGISLATION PAPER

NON-FINANCIAL DISCLOSURES Statement of legal position – SOLP Statement of compliance position – SOCP Statement of Ecological position – SOEP Statement of Governance position - SOGP

WHAT ARE THE NUMBER OF LAWS IN INDIA?

ANY QUESTIONS OR HAVE I CONFUSED YOU ENOUGH?

Thank you RAMMOHAN BHAVE mohanbhave@gmail.com +91 9322249833 +91 9004043365

Overview of IFRS & opportunities for Company Secretaries