5. Corporate Impacted by IFRS in India
In the initial phase, the large entities are expected to adopt Ind-AS. The large entities might be:
- Public Listed Companies forming part of Stock Exchange Index- All companies above a particular level of net worth.- Indian subsidiary of foreign companies, if so required by the parent company for consolidation purpose.
6. Some Key Challenges to Implementation
a) Amendments in the Law IFRS will have a bearing on the legal provisions as are presently set out in the Indian Income Tax Act, Companies Act, etc.
b) Impact on financial results Financial reports will experience a lot of changes. For example treatment of depreciation differs. Hence, the value of assets as well the profitability of the organization may swing, which, in turn, may impact the net worth.
c) User awareness and training Many people are yet not aware of IFRS, their complexities and impact. A change in the reporting format will require awareness of these new norms and systems, training and education, both for the professional as well the user.
7. ASA- Your Partner in Change ASA has established a center of excellence for IFRS. The team includes chartered accountants certified in IFRS. We are fully geared to provide the following services
a) Training( 3-5 days): We have both general and industry specific training modules on IFRS. Our certified trainers would help your users to understand the IFRS and its key differences with IAS.
b) Impact Analysis( 3-6 weeks): Our detailed checklist helps to determine the impact of conversion on different stakeholders of the company viz. promoters, investors, shareholders, regulators, etc.
c) Conversion( 3-4 months): We would take the company through the process of conversion including changes to accounting / operational systems). We follow template based approach in order to fast track the process of conversion, besides coordinating the conversion activities with the concerned IT vendor.
d) Accounting Support: The conversion process would lead to additional work in relation to accounting or reconciliation. We could provide appropriate staff to close the gap.
ASA has contributed in many seminars and conferences, and has arranged client specific workshops as regards the various aspects of IFRS conversion. Being a member of NIS Global, an international association of independent accounting firms, we are able to bring to bear experience of other member firms in Europe, Japan etc which assisted their clients to undergo the process of IFRS conversion.