Académique Documents
Professionnel Documents
Culture Documents
2009 11
2009‐11
Time of transition
IFRS – a roadmap to transition
WHY IFRS ?
India is one of the over 100 countries that have or are moving towards IFRS
((International Financial Reporting
p g Standards)) convergence
g with a view to
bringing about a uniformity in reporting systems globally, enabling
businesses, finances and funds to access more opportunities.
Indian companies are listed on overseas stock exchanges and have to recast
their accounts to be compliant with GAAP requirements of those countries.
Foreign companies having subsidiaries in India are having to recast their
accounts to meet Indian & overseas reporting requirements which are
different.
different
Foreign Direct Investors(FDI), overseas financial institutional investors (FII)
are more comfortable with compatible accounting standards and
companies accessing overseas funds feel the need for recast of accounts in
keeping with globally accepted standards.
ICAI has decided to implement IFRS in India. The Ministry of Corporate
Affairs has also announced its commitment to convergence
g to IFRS byy 2011.
IFRS – a roadmap to transition
IFRS ‐ WHOM APPLICABLE ?
Listed companies
Banks, insurance companies, mutual funds, and financial institutions
Turnover in preceding year > INR 1 billion
Turnover in preceding year > INR 1 billion
Borrowing in preceding year > INR 250 million
Holding or subsidiary of the above
IFRS – a roadmap to transition
WHEN IFRS ?
IFRS for public entities in India is applicable from 01/04/2011. The opening
IFRS balance
b l sheet
h t att the
th date
d t off transition
t iti to
t IFRS – 01/04/2010,
01/04/2010 which
hi h is
i
the start date for full comparative information presentation in IFRS.
IFRS – a roadmap to transition
WHAT DOES IFRS AFFECT?
Legal agreements Business risk
Revenue
Revenue Property & Assets
Property & Assets & wording
& wording assessment
Recognition & Equipment
Business
Accounting
M
Management Product Design &
P d D i &
Financial team structure business vaibility
Consolidation
Instruments
Board & investor
Valuation
communications
Reporting
p g
MIS & Management
Disclosures
reporting
IFRS – a roadmap to transition
IMPACT OF IFRS ‐
A detailed
d l d analysis
l off allll aspects off impact and
d change
h as wellll as allll legal
l l
documentation and communication becomes necessary.
IFRS – a roadmap to transition
IFRS –THE GREY AREAS
While IFRS compliance date has been declared by the ICAI, there are several
areas which
hi h are still
till nott in
i consonance with
ith such
h implementation
i l t ti and
d
several accounting standards and statutes will need amendment.
Full & unreserved compliance with IFRS is the objective. However, not many
entities are aware about the significance or ramifications thereof, which
may lead to a rush for compliance later with some undesirable
consequences.
The Government may at any point in time simply effect all requisite changes
for the implementation by saying ‘ IFRS norms are applicable w.e.f. a
certain date. The onus will be on the management to comply with the
requirements and the auditors will only have to comment on whether the
management has properly complied with the norms or not.
IFRS – a roadmap to transition
IFRS – THE PAIN AREAS
IFRS – a roadmap to transition
HOW ARE IFRS STATEMENTS PRESENTED?
IFRS – a roadmap to transition
HOW ARE IFRS STATEMENTS PRESENTED?
IFRS – a roadmap to transition
HOW CAN WE HELP YOU ?
Penta Consulting will help you walk through the entire process of planning,
preparing
i and d transition
t iti tot IFRS and
d help
h l you in
i educating
d ti your internal
i t l&
external stakeholders for managing the change.
Assess
H d
Handover C
Compare
Educate Present
IFRS – a roadmap to transition
SKILLSETS FOR IFRS :
Penta Consulting’s team brings together a useful combination of skillsets
required to address the issues arising out of IFRS transition & compliance
Accounting
• Understand of IFRS requirements
• Understanding of accounting systems, issues & training
Legal
• Understanding impact of legal issues on IFRS
fl l
• Re‐drafting legal contracts if necessary
IFRS – a roadmap to transition
PEOPLE FOR IFRS :
Penta Consulting’s team brings a relevant combination of people & skillsets
to address the issues arising out of IFRS transition & compliance
Accountants
• Chartered Accountants conversant with IFRS requirements
gy y
• Chartered Accountants with Information Technology & systems
background & experience
Legal & Other professionals
• Lawyers with understanding of impact of legal issues on IFRS
Lawyers with understanding of impact of legal issues on IFRS
• Company secretary, ICWA, MBA for reporting systems, business
communications & MIS
Engineers & Systems experts
g y p
• Engineers, ISO, valuation experts
• Project planning & Training experts
IFRS – a roadmap to transition
IFRS CONVERSION
IFRS – a roadmap to transition
IFRS in INDIA
2011
IFRS – a roadmap to transition
IFRS in INDIA
2011
ifrs@penta.co.in
PENTA CONSULTING PVT. LTD.
www.penta.co.in
IFRS – a roadmap to transition