India to use global accounting norms from next year
09 Aug 2012
India will implement the International Financial Reporting Standards (IFRS) from the next fiscal year irrespective of whether the direct taxes code comes through or not, minister for corporate affairs and power Veerappa Moily said on Thursday.
"We have taken the initiative that irrespective of whenever the DTC comes, we are determined to ensure that IFRS is implemented by 1 April 2013," Moily said at an Assocham event in New Delhi.
According to an earlier road map laid out by the corporate affairs ministry, companies with a net worth of over Rs1,000 crore were to converge their account books as per the globally accepted IFRS from 1 April 2011, but lack of clarity on tax-related issues had pushed back the date for implementation.
One of the key contentions was the issue of Minimum Alternate Tax (MAT) under the DTC regime. The DTC bill, which was introduced in Parliament last year, proposes to replace the 50-year old Income Tax Act. It is also scheduled to be implemented from 1 April.
The new accounting standards are considered more reliable, consistent and uniform and are meant to enhance the credibility of businesses by incorporating more disclosures.
"Reforms in the process of doing business in India are vital to keep pace with changing times and global trends, more so as we are currently ranked low in the global index on ease of doing business," Moily said.
"Realising this, we have hastened the pace of reform process to effectively address the current challenges faced by the domestic corporate sector."
