Venkat Raman –
Indian corporates would become more transparent and accountable as the new Indian Accounting Standards (IND AS) comes into effect with the new financial year beginning on April 1, 2016.
That would be good news for New Zealand companies apprehensive of the accountability of their Indian counterparts.
The new accounting standards, on a par with the International Financial Reporting Standards (IFRS) which have been adopted by most countries of the world (except the United States of America, which follows its own Financial Accounting Standards Board Reporting Standards, together with the Sarbanes-Oxley Act of 2002).
Institute of Chartered Accounts of India (ICAI) President Manoj Fadnis (who has since completed his term of office) told Indian Newslink on February 4, 2016 that the new standards are mandatory for all listed (or in the process) companies with a net worth of Rs 500 Crores (about $112.80 million) from the ensuing financial year.
But companies must have comparable accounting processes during the 2015-2016 financial year ending March 31, which in effect makes the Reporting standards imperative from last year.
“The new Reporting Standards would enhance the profession of Chartered Accountants in India and help in promoting Mutual Recognition Agreement (MRA) with advanced countries including New Zealand,” Mr Fadnis said.
The Indian Ministry of Corporate Affairs (MCA) has released a roadmap for the adoption of IND AS, which converges with IFRS, Indian banking, insurance and non-banking finance companies. These companies were exempt from the general roadmap announced in January 2015.
“In January 2015, the MCA released a roadmap, which will require companies with a net worth of Rs 250 crores (about $56 million) or more to follow the new norms from April 1, 2017. For banking, insurance and non-banking finance companies, which were exempt from the general roadmap, a separate procedure has now been drawn up that will see a phased approach with IND AS adoption beginning on April 1, 2018,” Mr Fadnis said.
Benefit to New Zealand
ICAI Vice-President Devaraja Reddy (who has since become President) said that the new accounting standards would benefit the Institute’s members working in New Zealand and other countries.
“We are also confident that the opening of the New Zealand Chapter of the Institute will enable members to gain membership to the Chartered Accountants Australia New Zealand,” he said.
Among the office-bearers of the Chapter are Chandan Ohri (President), Raj Kapoor (Vice-President), Bimal Dalal (Secretary) and Prasad Khatkul (Treasurer).
They were present at the inaugural function which was attended among others by Indian High Commission Charge de Affaires Sandeep Sood, Members of Parliament Kanwaljit Singh Bakshi (National) and Mahesh Bindra (New Zealand First).
Swathy Gudipoodi, Financial Controller at ‘Broadspectrum New Zealand’ was the Master of Ceremonies at the event held at KPMG Building in Viaduct.