New accounting regime for taxation from finmin soon

A key hurdle to implementing International Financial Reporting Standards (IFRS) in India is set to be removed. The finance ministry, which flatly refused to endorse IFRS for taxation purposes, has now started work on developing a new set of indigenous accounting standards, which would be capable of accurately estimating the tax liability of India Inc. The new India-specific standard will be marked by its flexibility to suit different types of businesses. It will also reconcile the Direct Taxes Code — which would replace the Income Tax Act once Parliament approves it — with the IFRS. The finance ministry move would mean that IFRS and the new standards for taxation would co-exist and companies could achieve compliance with both with relative ease. The larger companies will be the first to adopt IFRS.


Source : Financial Express