IFRS in India

Conversion is much more than a technical accounting issue. IFRS or Ind AS may significantly affect any number of a company’s day-to-day operations and may even impact the reported profitability of the business itself. Conversion brings a one-time opportunity to comprehensively re-assess financial reporting and take ‘a clean sheet of paper’ approach to financial policies and processes.

In early 2010, the Ministry of Corporate Affairs (MCA) issued various press releases on the IFRS roadmap and convergence plan for India specifying the convergence date to be 1 April, 2011, through 2014 for select Indian companies.

Since the timeline in the roadmap is no longer valid for Phase I companies, the new implementation date for Ind AS is awaited from the MCA. It is unclear if the MCA will release a fresh roadmap or just amend the implementation date.

Understanding IFRS or Ind AS and its implications is a business imperative for Indian companies.

 

Contact
Srijit Banerjee
Leader
Tel: +91 22 66691308
Shrenik Baid
Executive Director
Tel: +91 22 66691312
IFRS roadmap

On the road to conversion

If this is your situation:

Accounting and reporting

  • You need to understand how a transition to IFRS will affect your share price.
  • You are unclear how to account for your subsidiaries under the new accounting regime.
  • Your management needs help communicating the change to the market.
  • Your data collection is inadequate. A reporting package will be required to capture the IFRS information.

People

  • Your finance staff need training to understand the new accounting framework.
  • You understand that applying IFRS is more than a technical issue. Your finance, HR, treasury, tax, and IT staff all need training.
  • You lack internal resource. There may be competing demands on resources at all levels of your organisation.

Systems and controls

  • You need to understand how a transition to IFRS will affect your share price.
  • You are unsure what internal systems changes will be necessary.
  • Your existing IT systems may not be able to deal with the new IFRS data requirements. Systems upgrades are required.
  • You have identified a need for new controls as additional measures are required to comply with reporting and disclosure requirements.

How PwC can help

We have a proven track record in helping companies around the world successfully complete the transition to IFRS. Our industry-focused teams are ready to help you solve the accounting, systems and process issues surrounding complex IFRS conversions. Our team includes individuals who have helped previous adopters and who can offer you the full benefit of our experience.

Contact us to find find out how PwC can help you make the transition to IFRS.