Adoption History
India

Currently India is on the transition from Stage I to Stage III of IFRS adoption: from the stage where IFRS is not allowed to the stage where IFRS is required for some types of companies. Since 2010, India has complied with some IFRS, and it planned to reach full converge from 2011 (Ibarra & Suez-Sales, 2011, p. 48-49). However until now companies must continue to report under Indian GAAP, because the timeline in the previous announcement is no longer valid due to the delay of effective date of Indian Accounting Standards (Ind AS) converged with IFRS, though the IFRS converged Indian Accounting Standards have been issued and placed on its website (MCA) after the recommendation of the NACAS (National Advisory Committee on Accounting Standard) (Institution of Chartered Accountants, 2011, p.133)

The MCA issued clarification on roadmap which outlines three phases for IFRS adoption on January 22nd, 2010 (Government of India, 2010). Meanwhile, the Institute of Chartered Accountants of India (ICAI) required companies listed in Phase I to converge with IFRS commencing from April 1st, 2011 (Institute of Chartered Accountants, 2010, p.11). The three phases are listed as following:

  • Phase I: companies which are part of NSE – Nifty 50, or part of BSE - Sensex 30, or have a net worth in excess of Rs.1,000 (whether listed or not), or companies whose shares or other securities are listed on stock exchanges outside India will adopt converged IFRS starting from April 1st, 2011
  • Phase II : companies, whether listed or not, having a net worth exceeding Rs. 500 crores but not exceeding Rs. 1,000 crores will convert their opening balance sheet as at 1st April, 2013
  • Phase III: listed companies which have a net worth of Rs. 500 crores or less will convert their opening balance sheet as at 1st April, 2014

(Ministry of Corporate Affairs, 2010)

Reference:

The Institute of Chartered Accountants of India. (2010). 61st annual: 2009-2010. Retrieved from website: http://icai.org/post.html?post_id=7042

The Institute of Chartered Accountants of India. (2011). 62nd annual report and audited annual accounts of the institute for the year 2010 - 2011. Retrieved from website: http://icai.org/new_post.html?post_id=7881

Ministry of Corporate Affairs. (2010). Press realease 2010. Retrieved from website: http://www.mca.gov.in/Ministry/press_2010.html

Ibarra, V., & Suez-Sales, M. (2011). A comparison of the international financial reporting standards (IFRS) and generally accepted accounting principles (GAAP) for small and medium-sized entities (SMES) and compliances of some Asian countries to IFRS. Journal of International Business Research, 10, 35-62.