The BRICS Chamber of Commerce and Industry (BRICS-CCI) organised a conference on Ind As: Future of Financial Reporting in the Indian Habitat Centre with Grant Thornton as Knowlegde Partner and Achromic Point as Marketing Partner. The aim was to provide a platform for various Finance Professionals, Chartered Accountants and other auditing professionals for a comprehensive deliberation on the introduction of a new accounting standard, Ind AS (Indian Accounting Standards). The conference commenced with a brief welcome note by Mr. B.B.L. Madhukar, Secretary General of BRICS-CCI after which the Special Guest, Mr.Nilesh S. Vikamsey, Vice-Chairman of the Institute of Chartered Accountants of India (ICAI) addressed the gathering. Very eloquently, he expressed his views on the need, advantages, disadvantages, processes involved and probable challenges in the implementation of Ind AS. He talked about the systematic phase-wise execution of the new standard, the role of ICAI in this transition from the existing accounting standard Ind GAAP ( India-Generally Accepted Accounting Principles) to IFRS and called upon the industries to respond positively to the new standards.
Subsequently, an elaborate interactive session with the guests on the complex procedure of transition from the Ind GAAP to Ind ASwas conducted by Mr. Siddharth Talwar, Partner, Grand Thornton LLP, Mr. Amarjit Chopra, Senior partner, GSA & Associates and Mr. Keyur Dave, Partner, GTI LLP, wherein all the major provisions in the new standards were extensively discussed. Comparison between current Ind GAAP and Ind AS, role of ICDS, carve outs in Ind AS, need for co-ordination between ICAI, NACAS and Industries were some points of discussion. The major topics under the IFRS that were talked on were:
1. Ind AS implementation roadmap and conversion process
2. Ind AS 1: Presentation of Financial Statements
3. Ind AS 16: Property, plant and equipment
4. Ind AS 17: Leases
5. Ind AS 109 and 32: Financial Instruments
6. Ind AS 18: Revenue
7. Ind AS 103: Business Combinations
8. Ind AS 101: First time adoption of Ind AS
Further, Professor Ambrish Gupta, FORE School of Mangement, talked about the Ind AS along with ICDS Tax, aaprehensions of investors, concerns regarding effective execution on Ind AS and stressed on the need for “harmonisation of all rules, regulations and standards for desired results”.
This was followed by a panel discussion on Ind AS, the panelists being Mr. Siddharth Talwar, Mr. Vijay Pal (CGM-Finance, MMTC Ltd) and Mr. Sumant Chadha, President, The Institute of Internal Auditors India. The enriching discusion covered issues like Fair Valuation, componentization, Hedge accounting, possible changes in role of internal auditors in times to come, etc.
1. Involvement of fair valuation specialists and corresponding impact on balance sheets
2. Maintainance of parallel financial records
3. Effects on deferred tax balances
4. Possible decline in topline of groups having significant interests in Joint Ventures
The conference ended with Chartered Accountant Gaurav Mittal sharing his views on Taxation under the Ind AS regime.
The impact of the new guideline was found to include: