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IFRS

IFRS. A Numero-Uno Globally Accepted Accounting Framework. What is IFRS…. To see the List Please click on these Hyperlink. Stands for International Financial Reporting Standards . In a Broad sense IFRSs includes IASs , However in narrow it relates to only IFRS issued and effective so far.

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IFRS

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  1. IFRS A Numero-Uno Globally Accepted Accounting Framework

  2. What is IFRS… To see the List Please click on these Hyperlink • Stands for International Financial ReportingStandards. • In a Broad sense IFRSs includes IASs, However in narrow it relates to only IFRS issued and effective so far. • Till date 30International Accounting Standards (IAS, now adopted as IFRS), by IAS Committee and 8 IFRS, by IAS Board has been issued and effective. • Also 11 SICs(Standing Interpretation Committee) and 13 IFRICsInternational Financial Reporting Interpretation Committee has been issued for guidance on IAS and IFRS.

  3. Convergence of IFRS in India… • Participants (Who will take a part in convergence) • ICAI (Institute of Chartered Accountants of India) • NACAS (National Advisory Committee on Accounting Standards) • Central Government • Ministry of Corporate Affairs • The power of issuance of Accounting Standards has been delegated to Central government (but AS issued by ICAI shall be deemed to be issued by Central Government) U/S 211 3(c) of Companies Act, 1956. • NACAS (National Advisory Committee on Accounting Standards) has been established to ensure smooth transition to IFRS by the Ministry of Corporate Affairs, Government, Various Regulators like RBI, SEBI and IRDA. • ICAI will discuss with IASB on the areas required changes, keeping in view the Indian Conditions. • IFRS will apply to Listed Cos., Banks, Insurance Organizations, other Large size Cos. And probably to Level I Enterprises(as defined in preface to Indian Accounting Standards).

  4. Process and Timings of Convergence Process Central Government will make it effective on the date of notification. NACAS will review it and give its node IFRS becomes mandatory from accounting period commencing on or after 1st April 2011. (However it is also required to state previous year figures complied with IFRS in Financial Statement as on 31st March 2011. Therefore it is also applicable on Financials as on 31st March 2010). ICAI will draft and issue Accounting Standards Central Government considers it and make consequential amendments to other Fiscal Laws as in Companies Act Sec 211(3C) will require an amendment initially. Timings

  5. Global Acceptance • In June 2000 European Commission passed a ruling for all listed companies to follow IFRS for preparing CFS. • SEC (Securities Exchange Commission in US) has given a option toForeign Private Issuers to follow IFRS instead of US GAAP in preparation of Financial Reporting Standards. • SEC is also considering a proposal of treating Foreign and US issuers at par. • In more than 100 Countries, IFRS is required or permitted in preparation and presentation of Financial Statements of Domestic Listed Companies. Moreover in china it will applicable on 1st April 2008 & in Canada it will applicable in 2011.

  6. IFRS Convergence… Benefits and Challenges

  7. IASs/IFRSs vis-à-vis Indian GAAPs

  8. IASs/IFRSs vis-à-vis Indian GAAPs

  9. IASs/IFRSs vis-à-vis Indian GAAPs

  10. IASs/IFRSs vis-à-vis Indian GAAPs *Only 3 AS (AS 15, 30 & 31) are in line with IFRS so far.

  11. Other IASs / IFRSs • Corresponding to IFRS 6,Exploration for and Evaluation of Mineral Resources, Guidance Note of the ICAI titled ‘Accounting for Oil and Gas Producing Activities’, has been issued. • Some IAS/IFRS are not considered relevant for issuance of either Accounting Standards or the Guidance Notes by the ICAI. • StandardsReasons • IAS 29, Financial Reporting in Hyper-inflationary Economies Hyper-Inflationary conditions do not prevail in • India • IFRS 1, First-time Adoption of IFRSs IFRSs are not being adopted till date • Relevant ASs areunder preparation relevant to following IASs/IFRSs :- • IAS 26 Accounting and Reporting by Retirement Benefit Plans • IAS 32 Financial Instruments: Disclosure and Presentation • IAS 39 Financial Instruments: Recognition and Measurement* • IAS 41 Agriculture • IFRS 2 Share Based Payments (Covered by Guidance Notes) • IFRS 4 Insurance Contracts • IFRS 7 Financial Instruments: Disclosure

  12. Abhishek K. Garg Chartered Accountant +919818772279 abhishek.garg@honeywell.com Honeywell International India (P) Ltd.

  13. List of IASs (Issued and Effective) Continue to…

  14. List of IASs (Issued and Effective) *Revised standards has been issued and applicable from accounting period commencing on or after 1st January 2009. ** IAS 3,4,5,6,9,13,15,22,25,30 & 35 have been withdrawn.

  15. List of IFRSs (Issued and Effective)

  16. List of SICs (Issued and Effective)

  17. List of IFRICs (Issued and Effective)

  18. Meaning of Level I Enterprises • Means an Enterprises which satisfy one or more of following conditions: • Listed or in the process of listing whether in india or outside india. • Banks, Financials Institution, Enterprises carrying on Insurance Business • All Commercial , Industrial and Business Reporting Enterprises having turnover more than Rs.50 Crores or borrowings more than Rs.10 Crores in Preceding accounting period. • Holding and subsidiary of any one of the above, at any time during the accounting period.

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