International Financial Reporting Standards (IFRS) is achieving power throughout the world as a single, logical accounting framework and is positioned to become the predominant GAAP in the near future. More than 100 countries have moved to, or base their local standards on IFRS.
The impact in adopting International Financial Reporting Standards (IFRS) goes besides the choice of a uniform accounting language, designed to bring enhance clarity to financial reporting, as well as, comparability and flexibility on a global scale.
Indian Accounting Standards have not yet kept pace with modification in IFRS and there are momentous differences between IFRS and I-GAAP. Recognizing the significance of having full concurrence with IFRS, the ICAI has decided to fully converge with IFRS issued by IASB. The Ministry of Corporate Affairs has declared its commitment to convergence to IFRS.
The time has finally come when India Inc. will merge to International Financial Reporting Standards. IFRS as they are more generally known is more than just a set of accounting standards. It is in a way entire business process and encompasses changes in all the working spectrum of the business.
The misinterpretation around IFRS is that it would strike only listed entities or 'Large' entities; while on the contrary, no business can remain untouched by this wave of substance over form and fair valuation. The proof of it is the recently issued IFRS for Small and Medium Sized Entities (SME) which offers a scaled-down, simpler and more cost-effective version. Sooner or later, India will concentrate with these too.
Appropriate changes in transaction measurement and account disclosure means transitioning to IFRS will have a strike on your IT infrastructure service potential, the relevant financial reporting applications and the underlying business practices that support financial reporting. Moreover, the impact of IFRS on systems and processes will be as a result of information requirements not being easily available from existing systems without significant modifications being required; changes to accounting estimates and non-routine calculations, accounting structures changes because of new accounting policy adoption, and management reporting needs being impacted for consolidation and reporting disclosure changes.
What Rajput Jain & Associates Offers
We have worked broadly under IFRS and our experience indicates that IFRS is more than just a technical accounting exercise and needs to be viewed and studied as an important business priority. The Profits, EBITDA, Dividend policy, Tax Planning will all change because of this transition and companies need to plan well in advance to ensure a smooth transition. While it is established that IFRS in India is a reality, it is also a reality that converging to IFRS is no mean business and we at Rajput Jain & Associates aim at assisting clients in an easy transition.
- FULL CONVERSION:- We would take your existing I-GAAP financials and provide you with IFRS Financial Statement. This included IFRS Health Check up, IFRS Conversion services, IFRS Transaction Advisory.
- CUSTOMISED IFRS DISCLOSURE CHECKLIST:- For good IFRS reporting, you need a overall checklist. We would gather basic important information from you, do a quick interpretation and provide you with suggested disclosure checklist that could act as a comprehensive tool in ensuring complete and concise accounting disclosures. If you have a good knowledgeable team OR if you are an audit firm and can handle entire IFRS conversion on your own, you should definitely have this checklist to ensure completeness.
Rajput Jain & Associates are available to assist management in a number of ways, including, but not limited to, the following:
- Assisting in preparing and presenting Financial Report in accordance with IFRS.
- Providing online issue based consulting on IFRS.
- Providing mandate based consulting on IFRS.
- Performing functions of supervisors and reviewing the IFRS financial report.
- Providing the IFRS Financial Report Audit.
MYTHOLOGY OF IFRS SERVICES: - Rajput Jain & Associates provides an entire mythology of IFRS services: