I. The Core Group constituted by the Ministry of Corporate
Affairs has approved the roadmap recommended by Sub-group I in respect of
convergence of Indian Accounting Standards with International Financial
Reporting Standards (IFRS) for Insurance companies, Banking companies and
non-banking finance companies as under : (http://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/IEPRGOV0604010.pdf)
1. Insurance companies :
(i) All insurance companies will convert their opening
balance sheet as at 1st April, 2012 in compliance with the converged Indian
Accounting Standards.
2. Banking companies :
(i) All scheduled commercial banks and those urban
co-operative banks (UCBs) which have a net worth in excess of Rs.300 crores
will convert their opening balance sheet as at 1st April, 2013 in compliance
with the first set of Accounting Standards (i.e., the converged Indian
Accounting Standards).
(ii) Urban co-operative banks which have a net worth in
excess of Rs.200 crores but not exceeding Rs.300 crores will convert their
opening balance sheets as at 1st April, 2014 in compliance with the first
set of Accounting Standards (i.e., the converged Indian Accounting
Standards).
(iii) Urban co-operative banks which have a net worth not
exceeding Rs.200 crores and Regional Rural banks (RRBs) will not be required
to apply the first set of Accounting Standards i.e., the converged Indian
Accounting Standards (though they may voluntarily opt to do so) and need to
follow only the existing notified Indian Accounting Standards which are not
converged with IFRSs.
3. Non-banking
financial companies :
(i) The following categories of non-banking financial
companies (NBFCs) will convert their opening balance sheet as at 1st April,
2013 if the financial year commences on 1st April (or if the financial year
commences on any other date, then on the date immediately following 1st
April, 2013) in compliance with the first set of Accounting Standards (i.e.,
the converged Indian Accounting Standards). These NBFCs are :
(a) Companies which are part of NSE — Nifty 50
(b) Companies which are part of BSE — Sensex 30
(c) Companies, whether listed or not, which have a net
worth in excess of Rs.1,000 crores.
(ii) All listed NBFCs and those unlisted NBFCs which do
not fall in the above categories and which have a net worth in excess of
Rs.500 crores will convert their opening balance sheet as at 1st April 2014
if the financial year commences on 1st April (or if the financial year
commences on any other date, then on that date following 1st April 2014) in
compliance with the first set of Accounting standards (i.e., converged
Indian Accounting Standards).
Unlisted NBFCs which have a net worth of Rs.500 crores or
less will not be required to follow the first set of accounting standards
(i.e., the converged Indian accounting standards), though they may voluntarily
opt to do so, but need to follow only the notified Indian Accounting Standards
which are not converged with the IFRSs.
II. The Securities and Exchange Board of India (SEBI)
has, vide Circular No. CIR/CFD/DIL/1/2010 dated 5th April, 2010, reviewed
and amended the Equity Listing Agreement with respect to the following in
exercise of its powers under Section 11 and S. 11A of the Securities and
Exchange Board of India Act, 1992 :
(i) Requirement of Auditors’ Certificate for accounting
treatment under schemes of arrangement
(ii) Timelines for submission and publication of
financial results by listed entities
(iii) Voluntary adoption of International Financial
Reporting Standards by listed entities having subsidiaries.
(iv) Requirement of a valid peer review certificate for
statutory auditors
(v) Interim disclosure of balance sheet items by listed entities
