The switch to the new Indian Accounting Standards (Ind AS), which is to take place from April 1 onwards, will significantly affect companies in the financial services, retail and pharma sectors, a survey has found.
“The adoption of Ind AS beginning April 1, is likely to have a significant impact on the financial statements of Indian companies since Ind AS are relatively more prescriptive and elaborate in many areas compared to the current Indian generally accepted accounting principles (Indian GAAP). The extent of impact can vary across industries such as IT services/technology, pharmaceuticals, infrastructure and telecom,” it said. The survey of 100 companies by PwC found that half of the firms polled have not yet created a plan to implement the new accounting standards, which are being put in place to better conform to international standards of accounting. “Fifty-five per cent of the respondents believe that both net worth and net income will have a potential impact of +/- 20 per cent on the adoption of Ind AS,” the survey said. Over 50 per cent of the respondents are yet to plan or commence implementing changes at an organisational level.
