International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB), are rapidly becoming the benchmark for the accounting world. Convergence with IFRS has gained momentum in recent years and accounting bodies across the globe are aligning their existing accounting standards and/or issuing new accounting standards to conform to IFRS.
In India, the Ministry of Corporate Affairs (MCA) has issued a phased roadmap for convergence with IFRS; and the Institute of Chartered Accountants of India (ICAI) has issued 35 converged accounting standards which have been notified by the MCA.
The IASB is currently engaged in an ongoing convergence program with the Financial Accounting Standards Board (FASB - the standard-setting body in USA) to eliminate differences between IFRS and US GAAP, thus creating a uniform accounting platform. These developments have placed the onus on finance professionals to equip themselves with knowledge of IFRS and be prepared to handle the changing accounting scenario.