A Faculty Development Program on IFRS was held by ACCA and Mumbai University in association with SIMSREE. Here is the introductory talk by SIMSREE’s HOD of Finance, Dr. Sangeeta Pandit :
” Good Morning everybody!
With the notification of the Ministry of Corporate Affairs (MCA) in February 2015, International Financial Reporting Standards (IFRS) have now truly arrived in India. They are applicable and of great importance in preparing financial statements, auditing them and interpreting them. Their application will have far reaching impact and its ripples will be felt in Merger and Acquisition (M & A) Activities, joint ventures, private equity, raising of finance, tax planning, ESOPs and other strategic areas.
India, today, is an intrinsic part of the Global world and our regulators have prudently adopted 39 accounting standards formulated by the Institute of Chartered Accountants of India (ICAI) called IND As which are substantially in sync with the global standards of today called IFRS. Applicability of IND As to companies depend on their Net Worth and whether listed or not. By 1st April, 2017 a large number of the Indian companies will have to mandatorily adopt IND AS. The biggest problem for our Accounting Bodies is that we are formulating standards based on IFRS which are evolving. We are trying to model our standards based on standards that are very fluid.
The move to IFRS will enhance transparency, enable international comparability and make our markets more attractive.However, there are concerns – the level of complexity is certainly one of them. The stress on fair valuation ushers in subjectivity that may make accounts not comparable defeating the purpose of having standards. IFRS are constantly getting amended, such frequent changes, disrupts the very measures of calculation. Companies that do not use public money do they really need such complex standards is a moot question.
IND AS brings about a paradigm shift in many ways. New concepts will have to be learnt like Revenue Recognition model, Financial Instruments definition, manner of preparing Consolidated Financial Statements and many others.
IFRS has put a higher responsibility on Accountants. They are now required to know market economies, be able to read transactions as per their substance and strategic impacts and above all have an unbiased and ethical approach while doing fair valuation.
Considering the importance and complexity of IFRS, we felt it fit to have a workshop on this topic.
I am very grateful, to Dr. Anil Patil for sparing his valuable time and being our chief guest. I thank ACCA for collaborating to make this event happen. A big thank you to our esteemed speakers, Dr. Richard Martin of Association of Chartered Certified Accountants who will speak about the global scenario of IFRS and Mr. Date, Corporate trainer and consultant, who will speak about the relevance of IFRS in India.
Hope at the end of the day, you all feel that it was worth the time you invested. My best wishes for a day of great learning and net working. Merry Christmas and good luck and joy in the fast approaching 2016.