Adoption of International Financial Reporting Standards shall help PSUs compete globally: SCOPE

NEW DELHI: Exhorting PSUs to adopt International Financial Reporting Standards ( IFRS), public sector body SCOPE today said the move will enable state-owned firms to compete with multi nationals throughout the world.

Pointing out that Indian public sector enterprises have a are well prepared to adopt IFRS which will become mandatory from 2016-17, SCOPE Director General UD Choubey said: "Liberalisation and open market economy have required corporates to be more competitive and assimilate with world economic order for better professionalisation, governance, deliverability and image building".

"Adopting IFRS shall enable public sector enterprises to compete with multi-nationals through out the world," he said.

CMD of Cement Corporation of India RP Tak said adoption of IFRS will enormously benefit the commercial organisations, investors and the regulatory bodies as well.

Finance Minister Arun Jaitley, in his Budget speech on July 10, had said there was an urgent need to converge the current Indian accounting standards with IFRS.

"I propose for adoption of the new Indian Accounting Standards ( Ind AS) by the Indian companies from the financial year 2015-16 voluntarily and from the financial year 2016-17 on a mandatory basis," Jaitley had said.