 "Unlearn, learn, re-learn to be Ind-AS ready: V S Parthasarathy")
Despite its long-term benefits, there are a lot of short-term challenges. The challenges are both technical and non-technical such as readiness of people, processes and technology. To be prepared for Ind-AS, we all have to unlearn, learn and re-learn. We are providing intensive training to our employees to sharpen their saws.
We had created a 'Corporate Center of Excellence' to prepare for IFRS initially, but when it was delayed we still continued with the team and momentum for a smooth transition to Ind-AS across the group. We have partnered with the 'Big four' consultants to help us align our systems and processes. A dedicated IT team is also helping with building technology platforms to align the systems to make the transition successful.
To focus on a few of the technical challenges, under the new definition of 'control', we have to re-examine which of the entities to consolidate, specifically focusing on substantive participative rights. For business combinations, all identifiable assets and liabilities, including intangibles such as brands, have to be recorded at fair value, which will require a lot of rigour and examination.
There is no doubt that it's a daunting task but with our level of preparedness, I am confident we will come out with flying colours.
We had created a 'Corporate Center of Excellence' to prepare for IFRS initially, but when it was delayed we still continued with the team and momentum for a smooth transition to Ind-AS across the group. We have partnered with the 'Big four' consultants to help us align our systems and processes. A dedicated IT team is also helping with building technology platforms to align the systems to make the transition successful.
To focus on a few of the technical challenges, under the new definition of 'control', we have to re-examine which of the entities to consolidate, specifically focusing on substantive participative rights. For business combinations, all identifiable assets and liabilities, including intangibles such as brands, have to be recorded at fair value, which will require a lot of rigour and examination.
There is no doubt that it's a daunting task but with our level of preparedness, I am confident we will come out with flying colours.
V S Parthasarathy
Group CFO & CIO, Mahindra & Mahindra