Core group accepts Malegam roadmap for convergence with global accounting norms

The core group constituted by the ministry of corporate affairs has accepted the roadmap suggested by a sub-group headed by Y H Malegam for achieving convergence of Indian accounting standards with international financial reporting standards by April 2011.

The core group met in New Delhi yesterday under the chairmanship of R Bandyopadhyay, secretary, ministry of corporate affairs.

The meeting was also attended by officials from the finance ministry, the Securities and Exchange Board of India, the Reserve Bank, Insurance Regulatory Authority of India, Provident Fund Regulatory and Development Authority, Institute of Charters Accountants of India as well as industry representatives and other experts.

The core group discussed the report submitted by the Malegam committee and discussed in detail the amendments required to be carried out in the Companies Act, 1956 and related Schedule-VI and XIV as well as Accounting Standards Rules.

In respect of banking and insurance companies, the roadmap for convergence will be finalised by sub-group 1 by end-February 2010 in consultation with respective regulators, the release said.

The ministry of corporate affairs, meanwhile, reiterated its commitment to carry out the convergence of Indian accounting standards by April 2011.

The ministry said it would carry out necessary amendments in the Companies Act in the forthcoming budget session of Parliament.

The required amendments to the Schedule-VI and XIV as well as Accounting Standards Rules would also be carried out simultaneously so that the necessary legislative changes are in place to facilitate convergence, the release added.