India has opened a new chapter in its accounting reforms initiative with the formal notification of Indian Accounting Standards (Ind-AS) issued by the Ministry of Corporate Affairs (MCA) on 20 February 2015. Nearly 39 new accounting standards have been notified bringing them in convergence with the globally recognised International Financial Reporting Standards (IFRS).
India has adopted the convergence model rather than an adoption model. Even though most of Ind-ASs are very close to IASB IFRS, there are a few areas where the MCA has carve-outs from principles laid down in IASB IFRS. Some of the important carve outs are in the areas related to straight lining of lease rentals due to inflation, accounting for foreign currency convertible bonds, use of Indian GAAP carrying values of fixed assets and treatment of exchange differences on long term foreign currency borrowings.
Transition to Ind-AS is not a mere accounting change but has significant business consequences like impact on systems and processes, key performance indicators like EBITDA, liquidity ratios, net worth, debt covenants and executive compensation plans.
We urge you to attend this webcast to get a better understanding of how this will impact your business, helping you further with this crucial transition.
Date: 26 February 2015
Time: 11:00am to 12:30pm
Webcast Link: http://ey.wstream.net/150226/