Financial accounting standards in India could guide the world, if Indian Accounting Standards (IndAS) are pragmatically established, said Mr Amarjit Chopra, Chairman, National Advisory Committee on Accounting Standards (NACAS). He was speaking at the National Conference on Financial Reporting ‘Transition to IndAS and GST: Challenges and Experiences’ organized by the Confederation of Indian Industry at New Delhi.
IndAS implementation must be in spirit and not merely in letter, added Mr Chopra. In case of inconsistencies in application of IndAS, the FRRB (ICAI) and SEBI should play a more significant role. Also, he advised that ICAI should issue requisite guidance on IndAS. He expressed his concern on the difference in implementation dates of IndAS based accounting for Banking and Insurance sector.
Mr Kurian Vithayathil, Director General (Commercial), C&AG and Member, NACAS, said that IndAS converged with International Financial Reporting Standards rather than replicating them. Capacity Building is the major challenge, according to him, and there has to be shift from ‘Organisation based learning’ to ‘Industry based learning’.
Mr. Dipankar Chatterji, Chairman, CII National Committee on Financial Reporting, emphasised that both Regulators and Industry bodies like CII have played a significant role in implementing the various phases of the new reporting norms and GST. However, he stated that for GST, there has been a shift from what was conceived initially, from ‘One Nation One Tax’ to ‘One Nation, Multiple Returns and Registrations’.
Mr P R Ramesh, Co-Chair, CII National Committee on Financial Reporting, emphasised ‘Responsible Accounting’ where the data that accountants present must be utility based.
Mr. Sudhir Soni, Partner, Indian Member Firm of EY Global, highlighted the changes and opportunities of IndAS and GST. IndAS will provide reporting as per global norms and GST would help in restructuring business operations, he said.