The government today notified 35 accounting standards with a view to update Indian accounting norms in line with the global audit practice IFRS.
The companies, however, will be given time to adjust to the new accounting standards as government has now deferred the implementation of the International Financial Reporting Standards (IFRS) beyond April 1 this year.
The standards deal with preparation of accounts, valuation of financial assets, recognition of income and expenditure, among others.
"We have put in place 35 accounting standards to be followed by large companies in the first phase. Implementation by companies will depend on how and when some issues like the ones related to taxation are resolved or not. But the implementation date is not April 1, 2011," a senior official in the Ministry of Corporate Affairs (MCA) said.
The official said the implementation date will be decided after the Union Budget 2011-12 is announced on February 28.
"We'll have more clarity on the tax issues after the Budget announcement. Taxation was one of the key area of contention and we are expecting that the Finance Minister will clear the doubts," he said.
As per the earlier road map laid out by the MCA, companies will have to prepare their accounts as per the new norm in a phased manner, beginning with companies that have a networth of over Rs 1,000 crore from April 1.
Further, while scheduled commercial banks and urban cooperative banks will adopt IFRS from April 1, 2013, all insurance companies will convert their opening balance sheets with IFRS from April, 2012.
Large, listed non-banking finance companies (NBFCs), will converge their opening books of accounts with IFRS norms from April 1, 2013.