India plans to bring its accounting standards in line with International Financial Reporting Standards by April 1, 2011.
The Institute of Chartered Accountants of India made the decision, which will apply to public companies in time for the deadline, according to the Business Standard of India. Private companies will come under the sway of IFRS in phases.
Eventually, small and midsized enterprises will also be subject to the global standards after the International Accounting Standards Board finalizes its draft standards for these types of businesses. Once the new norms are in place, the ICAI expects they will ease the problems of accounting for cross-border mergers and acquisitions. The move should also enable the work of Indian chartered accountants to be recognized in other countries.
The ICAI plans to begin training chartered accountants across India in how to apply the international accounting standards.
