Govt to make changes in Cos Act to converge with IFRS

The government will make necessary changes in the new Companies Bill to facilitate convergence of the Indian accounting norms with the international financial reporting standards (IFRS) by 2011.

"The Ministry will carry out the exercise for necessary amendments in the Companies Act in the forthcoming Budget Session of Parliament," the Corporate Affairs Ministry said in a statement.

The required amendments to the Schedule-VI & XIV, which prescribes minimum rates of depreciation, as well as Accounting Standard Rules would also be carried out simultaneously, it added.

In view of the regulatory and policy changes required for Indian accounting norms to merge with IFRS, a Core Group was formed by the government to facilitate convergence. This Group comprises two sub-committees working on various aspects of the policy and regulatory changes.

The Core Group, comprising the Ministry of Finance, Sebi, RBI, IRDA, CAG, PFRDA, ICAI, industry representatives and other experts, late Tuesday accepted the report by sub group 1, headed by Y H Malegam on the roadmap for convergence with IFRS.

The government also reiterated its commitment to converge with the IFRS by April 2011.