International Financial Reporting Standards (IFRS) became mandatory in the European Union for the year ended December 31, 2005. Today, almost 100 countries have adopted or are in the process of adopting IFRS as their accounting standards, including Australia, South Africa, China, USA and Canada. After years of discussions and debates, it is clear that International Financial Reporting Standards are becoming the accounting standard for the world.
In India, the Ministry of Corporate Affairs (MCA) has issued a phased roadmap for convergence with IFRS; and the Institute of Chartered Accountants of India (ICAI) has issued 35 converged accounting standards which have been notified by the MCA.
Though India has not adopted the IFRS in full, it has converged its ASs to get those in line with the IFRS with certain carve-outs to better reflect the Indian economic and business environment. In pursuance of G20 commitment, the process of convergence of Indian As with IFRS has been carried out by the Ministry of Corporate Affairs (MCA) through wide ranging consultative exercise with all the stakeholders.