A vast majority of senior finance executives in corporate India are concerned about unclear tax laws and unclear regulations on International Financial Reporting Standards (IFRS), according to a survey by global audit firm Ernst & Young to gauge India Inc’s readiness to IFRS adoption.
According to the survey, which got responses from 112 companies, 56 per cent of senior finance executives are worried about unclear tax laws while 58 per cent executives are concerned about unclear regulations on IFRS adoption. India plans to converge to IFRS by 2011.
“Given the complexity and the magnitude of the change to IFRS, we strongly recommend that Indian companies commence the transition process right away," said Dolphy D'Souza, partner and national leader IFRS, Ernst & Young. Companies should not be swayed by the negative noises around IFRS as the benefits of a timely start and a robust plan are substantial, he added.