Harmonisation of accounting practices globally has become a need now, leading to convergence with IFRS,as issued by the International Accounting Standards Board(IASB). India has chosen to move towards ‘convergence’ with IFRS rather than ‘adoption’ of IFRS as such. Literally, the term “convergence” means attaining consistency between two objects. In the context of “convergence with IFRS”, the concept means harmonisation of Indian standards with IFRS and bringing down the differences between the two sets of standards to the minimum possible extent. This process is governed and affected by several factors, including the economic environment of the country adopting this practice.
This survey was focused on issues relating to implementation, readiness to implement Ind AS, key paybacks and constraints.
Key highlights of the survey:
An overwhelming majority of the respondents believe that the phase-wise implementation of Ind AS has provided enough time to companies for a smooth transition.
A majority of the respondents believed, revenue will be the area where the corporates would see potential impact on the adoption of Ind AS.
Respondents believe that Financial instruments would get affected the most due to Ind AS convergence process.
Overall, the survey results show that the company’s readiness for Ind AS implementation is no less than intended. While Ind AS adoption is a ‘mandate’, still there is an enthusiasm amongst the corporates for choosing the new accounting norm as they have accepted the reality now. They seem to be clear as to what are the opportunities and threats with respect to speaking a common accounting language.
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