Even as the Institute of Chartered Accountants of India (ICAI) finalises accounting standards, the ministry of corporate affairs (MCA) has come up with clarifications on IFRS road map in India.
An MCA note titled released on May 4, responds to several clarifications sou-ght by the industry.
Questions had been raised on the presentation of comparative financial information by Phase 1 companies in the first year of adopting the converged accounting standards. The MCA has now clarified that the opening balance sheet prepared on April 1, 2011 and the financial statements for the year ending March 31, 2012 shall be in accordance with the converged accounting standards; but comparative period figures (i.e., for the year ending March 31, 2011) shall continue to be reported as per the non-converged accounting standards.
A company may choose to report comparative period figures as per the converged accounting standards as an additional column in the financial statements. The opening balance sheet for companies in such a case shall be at April 1, 2010.
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