IFRS: International Financial Reporting Standards

1. Supriya Chougule,
Assistant Professor,
D.R.K. College of Commerce, Kolhapur

2.  Today in the era of globalisation the nations are changing their
scenario in many ways and we are part of that change. As From 1st
April, 2011 we had accepted to converge our Indian Accounting
Standards into International Financial Reporting Standards. Now it
is at the first stage because this convergence process is at beginning.
IFRS is applicable to listed entities at Nifty and Sensex in India and
Companies whose shares or other securities listed on stock
exchange outside India and lastly on companies whether listed or
not who have net worth in excess of Rs. 1000 crores.

3.  In the present paper attempt has been made to highlight
challenges before accountancy teachers due to implementation
of IFRS in India.

4.  Increasing complexity of business operations and
globalisation of capital markets make mandatory a single set
of high quality reporting standards. The government has
adopted a policy of enabling disclosure of company accounts
in a transparent manner at par with widely accepted
international practices, through a process of convergence with
International Financial Reporting Standards (IFRS).

5.  IFRS is a single set of high quality, understandable and
enforceable global accounting standards. It is a "principles
based" set of standards which are drafted lucidly and are easy
to understand and apply.

6.  Convergence means harmonisation of national GAAP with
IFRS through design and maintenance of accounting standards
in a way that financial statements prepared with national
accounting standards are in compliance with IFRS.

7. Country Adoption Target Date For Convergence to
IFRS
Brazil 2010
Russia Limited adoption in initial phase
India Companies with net worth of Rs.1000
crores and those which are part of
BSE, Sensex , NIFTY and listed in
overseas exchange
April, 2011
India Banks and non banking finance
companies
April, 2013
India All listed companies with net worth of
Rs.500 crores or less
April, 2014
Canada 2011
Japan 2011
Malaysia 2012
United Kingdom 2012
United States of America 2014-2015

8.  Same language
 Cross border investments leading to economic growth
 Comparability of financial statements of any two companies
anywhere in the world
 Globalisation of economy and world trade
 For multinational companies:
- Consolidation of group financial statements made easier
- Accounting and audit functions made easier and cheaper
- Compliance with regulatory requirements of bodies such as
stock exchanges
-Mergers and acquisitions made easier
-Access to multinational funds

9.  The job of governments and standard setters in the developing
countries made easier
 The job of tax authorities made easier
 Time and money saved by international professional accounting firms
in planning and execution of accounting and audits.
 Benefits for national regulatory bodies
- Improved regulatory oversight and enforcement
- A higher standard of financial disclosure
- Better information for market participants to underpin
disclosure based regulation
- Better ability to attract and monitor listings by foreign
companies Administrative

10.  Reduction in Costs of accessing the capital markets around the
world
 Benefits for policy makers
-Strengthened and more effective Indian capital market
-Better access to the global capital markets
-Promotion of cross-border investments

11.  Need to bring changes in Curriculum/ Syllabi
 Create Awareness
 Need for Training to teachers
 Need to consider practical application of IFRS
 How to get Information?

12.  Industry Liasioning
 Non availability of study Material
 Less costly online courses
 Need to bring healthy coordination between Educational
Institutes and ICAI
 Huge need for Research and Development

13.  Yet there is lack of understanding about impact of IFRS on
financial statements. Hence it is responsibility of educational
faculty to come out with some writings to facilitate
information about IFRS.
 Separate courses should be started in the universities and
affiliated college on the International Financial Reporting
Standards.
 Separate text books containing case studies along with some
practical examples should be prepared by the academicians.

14.  There is need to undertake the projects for the research work on IFRS and
universities, UGC should give some funds on the research work of IFRS.
 Universities and colleges should revise their syllabi and curriculum at
various levels like B.Com, M.Com, M.B.A. and other Accounting Courses
and include IFRS as a part of syllabus.
 Academic institutes should organise the conferences, seminars, workshops
on IFRS and related issues along with interaction or with the coordination
of ICAI.
 There is huge need to train the accountancy teachers, students, and
officials so, training camps should be organised by the authority bodies.
 Educational material should be prepared focussing on important issues
related to IFRS.

15. Thank You