ICAI may look at adopting IFRS in longterm

India could look at adopting international accounting standards IFRS in the long term based on how the converged norms work out, according to ICAI.

Rather than adopt the International Financial Reporting Standards (IFRS), India at present is only looking to converge with this set of norms through Indian Accounting Standards (Ind AS).

"Yes, we are open to adoption it is not that we say we are closed (on the issue)," Institute of Chartered Accountants of India (ICAI) President K Raghu said during an interaction here.

"Once we set our convergence mode we will try to test the financial reporting standards on various corporates in India and definitely the next step would be how to look at adoption (of IFRS)," he said.

However, Raghu also cautioned that a lot of issues have to be looked at before taking a decision like adoption of IFRS, especially since India is a fast growing economy.

ICAI, the country's accounting regulator, has suggested a road map to the Corporate Affairs Ministry for the gradual convergence with IFRS.

IFRS is developed by the International Accounting Standards Board (IASB).

"The ICAI debated in great details whether we should go for adoption or convergence... After taking the views of various stakeholders we decided that India should take the convergence mode," Raghu said.

In response to a query on the delay in converging with IFRS, he said that it was important to first ensure that stakeholders as well as professionals are ready for the same.

"Today, we can assure you that ICAI is completely ready to get into implementation mode because all our standards have gone through a robust process...," he added.

Meanwhile, IASB Chairman Hans Hoogervorst said adopting IFRS would significantly help India in attracting global investments.

"Really to get the international credibility... You (India) have to adopt the whole thing (IFRS)" he noted and cited examples of Brazil, Korea and European Union which have fully adopted IFRS.