Corporate entities could expect greater clarity on the issues related to the implementation of global reporting standards, known as IFRS, according to KPMG executive director Jamil Khatri.
Khatri, who is a member of a International Financial Reporting Standards sub-committee that is vetting the procedural and implementational issues of these global accounting norms, said, "there are a few implementational issues on which clarity is expected very soon... The sub- committee is already aware of these issues and greater clarity will come."
Speaking on the sidelines of an ICC-KPMG organised IFRS Convergence meeting here today, he said there are two sub- committees under the core group formed for IFRS implementation. India will move to IFRS accounting standards from Indian GAAP by 2014 in phases.
The panel is studying whether non-banking finance companies like insurance firms and banks could be excluded from the phase I of implementation starting April 2011,he said. Clarifications had been sought by companies for change on eligibility status in 2011.
According to the norms, those to abide by IFRS standard by April 2011 are companies in the Sensex, Nifty or those firms with Rs 1,000 crore networth and are listed overseas.
Khatri said there would be 400-500 companies which will come under the first phase of implementation. All companies will have to switch to IFRS from Indian GAAP by 2014.
