ICAI to converge with international standards

KOCHI: The Institute of Chartered Accountants of India has decided to "fully converge" with International Financial Reporting Standards (IFRS) from accounting periods starting on or after April 1, 2011, a senior ICAI official said here today.

Vedkumar Jain, vice-president of ICAI New Delhi, said like in other countries including Australia, New Zealand and European Union countries, the IFRS will be adopted for the listed entities and other public interest entities such as banks, insurance companies and large sized entities.

Jain told reporters that the decision is an important milestone in achieving full convergence with IFRSs as India will join 102 countries which presently permit use of IFRS in preparation of financial sttement in their countries, he said.

By 2011, about 150 countries would adopt the new standards, issued by the International Accounting Standards Board (IASB), he said.

ICAI has taken several initiatives to enhance the brand image of the profession. Chartered accountants have been allowed to prefix CA, to their names and a dress code has also been recommended for them, he said. The new dress code will be supplied from the month of October, he said.

As part of improving infrastructure of the institutes, it was planned setting up of centres of excellence at various places in the country, he said, adding it will help the members to learn more and improve their skills.

Replying to a query on the entry of foreign CAs into the country, he said "we are prepared for any competition, but it should be equitable".

"If foreign CAs are allowed into the country, Indian CAs should also be allowed into foreign countries," he said.