NACAS to complete IFRS convergence report by November-end

Racing against time, the revamped NACAS expects to complete its final report on convergence of Indian accounting norms with global standards by November-end.
The "immediate priority" of the National Advisory Committee on Accounting Standards (NACAS) is to work towards implementation of norms that are converged with International Financial Reporting Standards (IFRS), according to the panel's chairperson Amarjit Chopra.
He told PTI that the panel would complete its report by November-end and the first meeting of the re-constituted committee is expected to be held in the coming week.
The government has said the adoption of new Indian Accounting Standards (Ind AS) -- converged with IFRS -- by domestic companies should voluntarily start from the 2015-16 fiscal and the same would be mandatory from 2016-17.

"We have to complete it (final report on Ind AS implementation) by November end" since the government has set a time frame that starts from 2015-16 fiscal, Chopra said.
According to him, the biggest challenges for implementation of Ind AS would be in the banking and insurance sectors.

"There will be certain carve outs (exemptions) as India is
only converging not adopting IFRS," he noted.
On September 18, the Corporate Affairs Ministry which is implementing the companies law, re-constituted NACAS -- that would advise corporates on accounting policies and standards.
It would be in place till National Financial Reporting Authority (NFRA), under the new companies law, is set up.

The 13-member panel includes RBI and SEBI officials.
Among others, officials from Corporate Affairs Ministry, CBDT and CAG, Institute of Cost Accountants, Institute of Chartered Accountants and Institute of Company Secretaries are also part of the committee.
The panel would "advise the central government on the formulation and laying down of accounting policies and accounting standards for adoption by companies or class of companies", the Ministry had said in its circular.
Under the Companies Act, 2013, the government is to set up NFRA that would have powers to lay down the accounting and auditing policies and standards.
Finance Minister Arun Jaitley, in his Budget speech on July 10, had said there was an urgent need to converge the current Indian accounting standards with IFRS.

"I propose for adoption of the new Indian Accounting Standards (Ind AS) by the Indian companies from the financial year 2015-16 voluntarily and from the financial year 2016-17 on a mandatory basis," he had said.