Minimise chances of changes post implementation: Nilanjan Roy

The phased implementation road map for Indian Accounting Standards, aligned to the International Financial Reporting Standards (IFRS), is a major step forward for India's integration with the global economy. However, there are some challenges that need to be addressed while implementing these.

Globally, the application of the new standards on revenue has been deferred until January 2018, owing to the need for clarity on various technical accounting aspects and system implementation/software changes. The new standards are yet to be implemented anywhere in the world. India would be the first to do so. From the perspective of the Indian telecom sector, a rapidly-evolving industry operating across a broad revenue spectrum - voice calls, high-speed data, satellite communications, etc - there could be implications on matters such as multiple arrangements, transaction price and variability thereto, goodwill, indefeasible rights of use and capacity arrangements, fair valuation of deposits and asset retirement obligations.

Changes due to the introduction of Ind-AS also require diligent and elaborate communication with all stakeholders - investors, auditors, employees, etc - and need capability building within companies, audit firms, valuation experts, etc.

While most Indian companies and industry associations are firm on implementing the new standards, we must take a structured approach to rolling it out and minimise the chances of changes post the effective date.

Nilanjan Roy
Global chief financial officer, Bharti Airtel