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October 2010

House Panel calls for harmonisation of Provisions of Companies Bill with International Financial Reporting norms

By Raman Jokhakar
Tarunkumar G. Singhal
Chartered Accountants
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11 House Panel calls for harmonisation of
Provisions of Companies Bill with International Financial Reporting norms


 

The Standing Committee
of the Parliament, which thoroughly examined The Companies Bill, 2009, has
observed that there are several matters included in the Bill, which need
modification with a view to harmonising them with the International Financial
Reporting Standards (IFRS). The Committee has, therefore, desired that all such
matters requiring harmonisation with IFRS should be considered and appropriate
amendments may be made in the relevant proposals contained in the Bill. The
Standing Committee on Finance (SCF) presented its Twenty-First Report, which
pertains to the Ministry of Corporate Affairs, to the Parliament recently.

The Committee’s
examination of the subject and the replies of the Ministry received thereon
reveal that the following provisions/clauses of the Bill require modification
for achieving convergence with IFRS :



2(1)(b) :
(Definition of the term ‘accounting standard’)

 

46(2) : Utilisation of securities premium
account

 

49(1) : -do-

 

59(3) : Reduction of share capital

 

110(2) : Prescription of depreciation rates

 

117(1)

and

 

117(4) : Financial statements to comply with
accounting standards

 

201 :
Schemes of mergers and


amalgamations.




(Source : www.taxindiaonline.com, dated
8-9-2010)

 

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