By IANS,
New Delhi : With corporate governance and accounting norms coming under the scanner following the $1.43-billion Satyam scam, global consultancy and accounting major KPMG Wednesday announced the launch of an initiative to help Indian businesses conform to international accounting standards.
KPMG’s initiative – a web-based platform called the International Financial Reporting Standards (IFRS) Institute – is designed to assist various stakeholders in the planned convergence from Indian Generally Accepted Accounting Principles (GAAP) to IFRS.
“The conversion from Indian GAAP to IFRS will impact all stakeholders, be it corporate preparers, audit committee and board members, auditors, regulators, investors, analysts and even the public at large,” said KPMG’s head of accounting advisory services Jamil Khatri.
“Companies considering conversion to IFRS will need to be prepared to respond to regulatory developments regarding implementing IFRS. Currently, there is lack of clarity on several regulatory matters that would impact implementation,” he added.
Institute of Chartered Accountants of India had earlier decided to fully converge with IFRS from April 1, 2011 for listed entities and other public interest entities such as banks, insurance companies and large entities subject to approval of the government and other legal and regulatory authorities.
India has time till 2011 for shifting from GAAP to IFRS.