The government’s decision to give some leeway to the banks and non-banking financial services on the switch over to the IFRS is pragmatic, analysts told.
As per the new schedule for IFRS convergence, banks and NBFCs will need to adopt the system only by 2013. It was widely anticipated that banks would have to switch to the new accounting standards by 2011.
The government has given two more years to banks and non-banking finance companies to align their accounting practices with the IFRS.
The core group of the ministry of corporate affairs extended the deadline to April 2013 at a meeting on March 29.
Glaring differences in treating vital parts of companies’ financial statements could delay many mid-size Indian companies from actively switching over to International Financial Reporting Standards, or IFRS.
Some of the differences could make companies show unusually large revenue or incomes resulting in greater tax outgo, while in some cases IFRS norms may lead to lower income recognition, which, auditors say, discourages mid-size companies from taking steps to move to IFRS.
To reinforce control over auditors, the government is planning to give the regulator – Institute of Chartered Accountants of India – more teeth. Among the options being considered by the ministry of corporate affairs is to make it mandatory for a firm – Indian or foreign – doing audit to get a no-objection certificate from the regulator before it gets registered as a company or a limited liability partnership (LLP).
The auditors would also be required to wind up their display proceedings in a shorter period of time.
Applications are invited for web based registration of CA firms for the pupose of preparing a fresh panel of Audit Firms which will be used for selection of suitable Auditors for Appointment as Concurrent Auditors for the year 2010-2011. The Registration will remain open from 25/03/2010 to 15/04/2010.
It becomes imperative that the entire scope of work , involving voluminous work and extensive procedures, is understood and the entire assignment is well planned and executed, without sacrificing quality; and so that all requisite reports/attestations are furnished within the stipulated severe time constraints imposed for the completion of the assignment.
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