IRFS to replace U.S. GAAP by next month

NEW DELHI: India will adopt the globally accepted International Financial Reporting Standards (IFRS) by 2011, a move that will integrate the accounting system with the rest of the world.

“A common accounting standard is in the interest of the investors who are exploring investment opportunities in other geographical areas as well,” Institute of Chartered Accountants of India (ICAI) President Ved Jain told reporters here on Wednesday. More than 109 countries, including China, have adopted IFRS and many more like Japan, Canada and South Korea are expected to follow suit.

The issue of adoption of IFRS by Indian companies was discussed at a meeting between International Accounting Standards Board (IASB) Chairman David Tweedie and officials of the Ministry of Corporate Affairs.

The IFRS, which has been formulated by U.K.-based IASB, will replace the Generally Accepted Accounting Practices (GAAP) in the U.S. by the end of next month, Mr. Tweedie said. — PTI