Progress lies not in enhancing what is, but in advancing towards what will be.
- Khalil Gibran
Lately, Ind AS has emerged as the hot topic among the financial masses. It is believed that Adoption of these standards will have an overwhelming impact on the industry as a whole. These Standards reflect the improvement made by integrating the Indian Accounting and Finance System with that of the World where IFRS holds the foreground.
The procedure for implementation of these standards has been devised such that they are rolled out in two mandatory phases to ensure smooth transition.
Application of Ind AS has a far reaching impact on various fields such as Taxation, Dividend, IT Systems, Financial instruments, Business Process and Systems, change management, communication and training. Although Ind AS is aimed at standardization across all the industries, certain banking and insurance companies are exempted from compliance as they are governed by their own statutes.
Considering the integration with the global practices, it comes as no surprise that the disclosure requirements under Ind AS ensure high levels of transparency, reliability, relevance and consistency.
As it has always been the case, no loaf of bread comes without the edges. To begin with, at least until comprehensive coverage of companies under this bracket, comparison will be a major challenge. Also, personally, I believe that at this rate, we are not far from looking at ourselves following the calendar year in the quest for uniformity. At the same time, some companies might not be able to cope with the changes within the time frame.
In the end, like every diplomatic conclusion ever, it is a question of balance. And much to the elation of the public, it certainly looks to be in favor of the “Number Nazis” (Chartered Accountants) around the country. Let us hope the transformation delivers what it promises.
Authors
Dweepshi Gupta
Dweepshi Gupta is an article trainee at K. Vijayraghavan and Associates. She aspires to become a Chartered Accountant. She is fascinated by the Corporate world and is eager to gain expertise in it.
Anirudh S
Anirudh is a senior audit analyst at K Vijayaraghavan and Associates LLP. He has had varied industry exposure as an intern and understands the ways and means of the market from a practical angle. He is highly intrigued by the prospects of the change brought in by new laws and is quite efficient to assess their impact on the industries.
