Convergence With IFRS From 1 st April 2011 Where We Stand As 0n By: Technical Directorate The Institute of Chartered Accountants of India

Objective of Convergence As Per the Concept Paper To design and maintain national accounting standards in a way that financial statements prepared in accordance with national accounting standards draw unreserved statement of compliance with IFRSs

How This Objective Can Be Achieved By issuing IFRS-equivalent Indian ASs with only following changes permitted: Removal of alternatives Additional disclosures, where required

Issuance of Indian-equivalent IFRSs not sufficient if legal and regulatory requirements not consistent with ASs Hence, law/regulatory requirements need to be changed, where appropriate

What ICAI Has Done So Far Issuance of IFRS-equivalent Indian ASs By following the same due process Inclusions of IFRICs as Appendices AS no. remaining the same as existing- corresponding IFRS no. given in parenthesis

At Present, 37 IFRSs in Force Position of IFRS-equivalent ASs as on S No. StatusNo. of Standards 1ASs cleared by Council and NACAS for notification even before 1 st April 2011 (AS 2 and AS 3) 2 2ASs cleared by NACAS and to be issued as Exposure Draft (AS 1, AS 7 and AS 16) 3 3Drafts considered by ASB and have been circulated among specified bodies and NACAS (AS 29 and AS 33) 2

At Present, 37 IFRSs in Force Position of IFRS-equivalent ASs as on S No. StatusNo. of Standards 4Drafts considered by ASB and are being finalised for circulation among specified bodies and NACAS circulated among specified bodies and NACAS ( ASs 4,11,15 and 25) 4 5Drafts which will be considered by ASB at its subsequent meetings (ASs 19 and 24 ASs corresponding to, IFRS 6, IFRS 8, IAS 8,18, 27, 28, 33, 40, 41) 11 6ASs, which are being issued (which are virtually as per IASs) [AS 10(except few differences) and AS 12] 2

At Present, 37 IFRSs in Force Position of IFRS-equivalent ASs as on S No. StatusNo. of Standards 7Accounting Standards which are almost converged and only require changes with regard to subsequent amendments made by IASs (AS 30, 31, 32) 3 8Drafts which are under preparation and are yet to be received from Study Groups (AS corresponding to IFRS 1,IFRS 3, IFRS 4, IAS 12, 26, 29, 36, 38) 8 9Accounting Standards which are not being revised as corresponding IFRSs/IASs are under revision which is expected to be completed by March 31, 2009 (AS 18, 27) 2

Identification of Inconsistencies Between various Laws and Regulations Constitution of a Group on Liaison with Governmental and Regulatory Authorities Group has constituted separate Core Groups to identify inconsistencies between IFRSs and Companies Act SEBI Regulations Banking Laws & Regulations Insurance Laws & Regulations

What Has Been Done So Far by the Group? Inconsistencies between Companies Act and IFRSs identified Draft Schedule VI consistent with IFRSs formulated- should be made effective from (For sending to Ministry of Corporate Affairs) Inconsistencies between SEBI Mutual Fund Regulations and IFRSs identified Examination of other SEBI Regulations in progress (For sending to SEBI)

What Has Been Done So Far by Group? (Contd.) Inconsistencies between Banking Laws and Regulations identified Formats of financial statements under Schedule III of Banking Regulations Act being revised to be consistent with IFRSs (For sending to RBI) Inconsistencies between insurance laws and regulations identified Formats of financial statements for insurance entities under IRDA regulations being revised to be consistent with IFRSs (For sending to IRDA)

Participation in the IFRS development process Participation in the IFRS formulation from an early stage Sending comments to IASB on various discussion papers, exposure drafts, etc. Participation in the World Standards-setters meetings with IASB. Participation in the Regional Standards-setters meetings with IASB. Enhancing relations and communication with other standard setters. Participation in the international round-tables before the finalisation of IFRS.