‘IFRS mandatory from 2016-17 financial year’

July 13, 2014 12:39 pm | Updated 12:39 pm IST - VIJAYAWADA:

Indian corporate sector has to migrate to International Financial Reporting Standards (IFRS) from the home-grown Indian Accounting Standards by 2016-17 financial year. The new system will be mandatory from that year and it was necessitated by the need to be compliant with global practices, said Utpal Sen, Associate Director of Price Waterhouse & Co. LLP.

Addressing a session on post-budget analysis organised by the Confederation of Indian Industry (CII) here on Saturday, Mr. Sen said that the IFRS were essential to enable the foreign companies make proper interpretation of the balance sheets of Indian firms in order to make a correct assessment of their performance which reflects the condition of the economy.

Compliance with the IFRS in 2015-16 financial year is voluntary, Mr. Sen said, adding that tax accounting standards were also in the process of being aligned with the global benchmarks.

Additional Commissioner of Customs and Central Excise S.K. Rahman said a sea-change was expected to be heralded in the tax regime but the budget had maintained its predictability which was needed to forge investor-friendly business environment.

Goods and Services Tax

The corporate sector anticipated a quick roll-out of Goods and Services Tax (GST) after promptly sorting out the differences over its dual structure (Central GST and State GST) and the compensation to be paid to States for revenue loss and it could materialize in the near future.

Better Castings CEO J.S.R.K. Prasad said that the budget was supposed to make certain systemic changes in the economy and the FM had given it a clear direction in sync with the fiscal corrections required to be done. CII Vijayawada Zone Chairman V.V.M. Krishna, Sujay Biotech Managing Director M. Lakshmi Prasad, Efftronics Systems Pvt. Ltd. MD D. Ramakrishna participated.

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