IFRS in India Its Status Overview of Concepts and Impact in India 23 January 2011

IFRS in India Its Status, Overview of
Concepts and Impact in India
Rakesh Agarwal
Associate Director, PricewaterhouseCoopers
E-mail : rakesh.r.agarwal@in.pwc.com
Mobile : +91 9820273458
January 2011
Contents
Applicability of IFRS in India
Mapping IFRS and CIAS
Broad understanding of IFRS impact on India Inc.
Common Experiences (adjustments) from Indian GAAP to
IFRS (refer annexure 2)
Essential of IFRS conversion approach
Managing change
Phased approach Transition IFRS methodology
Project management framework
Project structure
Centralised approach v/s decentralised approach
Detailed Training program
Key challenges - mitigation steps / management

calls
Preparation of IFRS Financial Statements

Carve Outs in CIAS from IFRS
Impact Indian Experience
Annexures
1 : Accounting concepts relatively new in India
2 : Common adjustments from Indian GAAP to IFRS
3 : Select IFRS tools & publications
Transitioning to IFRS
IFRS across the world
Top 10 Global Capital Markets
Rakesh Agarwal
US
Converging to IFRS
Japan
Converging to IFRS
UK
IFRS
France
IFRS
Canada
Converging to IFRS
Germany
IFRS
Hong Kong
IFRS
Spain
IFRS
Switzerland
IFRS or US GAAP
Australia
IFRS
Slide 3
IASC Constitution The Current International Financial

Reporting Structure
Slide 4
The Preface and The Framework

Preface to IFRS
1. Objectives
A single set of high quality, enforceable global accounting standards
Work with various national standard Setters for convergence
2. Scope and Authority of IFRS
Designed for profit oriented enterprises
General purpose financial statements
Bold and plain type, have equal authority
3. Due Process
4. English Language
Framework for Preparation and Presentation of Financial Statements
1. Objectives of Financial Statements; includes cash flows
2. Underlying assumption
3. Qualitative characteristics of financial statements
Rakesh Agarwal
4. Elements of financial statements, recognition and measurement
Slide 5
The different levels of IFRS

STANDARDS
International Financial Reporting

Standards (IFRS) and
International Accounting
Standards (IAS)
International Financial Reporting

Interpretations Committee (IFRIC)
And Standing Interpretation
committee (SIC)
www.iasb.org
Exposure Drafts and

Draft Interpretation
Slide 6
www.cfodirect.
com
Rakesh Agarwal
Almost 3,000
pages and
increasing !!!
Type
IFRS
IAS
Number
9 (9)
41 (27)
IFRIC
19 (16)
SIC
33 (7)
Exposure drafts
and
Interpretation
Around 15
IFRS in India Its Status, Overview of Concepts and Impact in India
Applicability of IFRS in India

Opening balance sheet as at April 1* using IFRS-converged accounting standards
2011
NSE - Nifty 50 companies,
2012
All insurance companies
2013
2014
BSE - Sensex 30
companies,
Companies listed or not,

having a net worth between
Rs.500 crores and Rs.1000
crores [Note 1]
Listed companies having a

net worth of less than
Rs.500 crores [Note 1]
Companies whose shares

or other securities listed
outside India;
All scheduled commercial

banks
Companies listed or not,

having a net worth in
excess of Rs. 1,000 crores
[Note 1]
Urban co-operative banks

having net worth between
Rs. 200 to Rs. 300 crores
Urban co-operative banks

having a net worth in excess
of Rs. 300 crores
NBFCs (all other Listed)

NBFCs (other Unlisted)
having net worth between
Rs. 500 to Rs. 1000 crores
NBFCs - Nifty 50 or Sensex

30
NBFCs listed or not, having a
net worth > Rs.1,000 crores
Note 1: Companies not covered in the above chart will apply existing Indian accounting standards OR voluntarily opt to
apply the IFRS-converged accounting standards.
Slide 7
Mapping IFRS and CIAS (Converged Indian Accounting Standards)

Corresponding to standards issued by
IASB
Std. No.
Name of the standard

IAS/IFRS
IFRIC
SIC
Whether
significant
differences
between CIAS and
IFRS
CIAS 01
Presentation of financial statements
IAS 1
No
CIAS 02
CIAS 03
CIAS 04
IAS 2
IAS 7
IAS 10
No
No
No
CIAS 07
Inventories
Statement of Cash Flows
Events after the Reporting Period
Accounting Policies, Changes in Accounting Estimates and
Errors
Construction Contracts
CIAS 09
Revenue
IAS 18
CIAS 10
Property, Plant and Equipment
IAS 16
CIAS 11
IAS 21
No
IAS 20
No
CIAS 14
The effects of changes in Foreign Exchange Rates

Accounting for Government Grants and Disclosure of
Government Assistance
Business Combinations
IFRS 3
No
CIAS 15
Employee Benefits
IAS 19
CIAS 16
Borrowing Costs
IAS 23
No
CIAS 17
Operating Segments
No
CIAS 18
Related Party Disclosure
IFRS 8
IAS 24
CIAS 19
Leases
IAS 17
CIAS 20
Earnings Per Share
IAS 33
No
CIAS 21
Consolidated and Separate Financial Statements
IAS 27
No
CIAS 22
Income Taxes
IAS 12
No
CIAS 05
CIAS 12
IFRIC 17
IAS 8
IAS 11
No
IFRIC 12
IFRIC 13, 15,
18
IFRIC 1
No
No
No
IFRIC 14
No
No
IFRIC 4
SIC 15, 27
No
Slide 8
Mapping IFRS and CIAS (Converged Indian Accounting Standards)

Corresponding to standards issued by
IASB
Std. No.
Name of the Standard

IAS/IFRS
CIAS 23
Investments in Associates
IFRIC
SIC
Whether
significant
differences
between CIAS and
IFRS
IAS 28
No
IFRS 5
No
CIAS 25
Non-Current Assets Held-For-Sale and Discontinued

Operations
Interim Financial Reporting
CIAS 26
Intangible Assets
IAS 38
SIC 32
No
CIAS 27
CIAS 28
Interest in Joint Ventures

Impairment of Assets
IAS 31
IAS 36
SIC 13
No
No
CIAS 29
Provisions, Contingent Liabilities and Contingent Assets
IAS 37
IFRIC 5,6
No
CIAS 30
Financial Instruments: Recognition and Measurement
IAS 39
IFRIC 9,16,19
No
CIAS 31
Financial Instruments: Presentation
IAS 32
IFRIC 2
No
CIAS 32
Financial Instruments: Disclosures
IFRS 7
No
CIAS 33
Share-based payment
IFRS 2
No
CIAS 34
Financial Reporting in Hyperinflationary economies
IAS 29
CIAS 35
Exploration for and Evaluation of Mineral Resources
IFRS 6
No
CIAS 36
Accounting and Reporting by Retirement Benefit Plans
IAS 26
No
CIAS 37
CIAS 38
CIAS 39
Investment Property
Agriculture
Insurance Contracts
IAS 40
IAS 41
IFRS 4
No
No
No
CIAS 40
Financial Instruments
IFRS 9
No
CIAS 41
First time adoption of Indian Accounting Standards
IFRS 1
No
CIAS 24
IAS 34
IFRIC 10
IFRIC 7
No
No
Slide 9
Broad understanding of
IFRS impact on India
Inc.
Potential Impact of IFRS on consolidated financial statements of

ABC Limited for the Y.E. March 31, 2010
Areas
A
Select Components of Financial Statements
Consolidation
(SIC 12, DT on outside basis)
Business Combinations
(common control transactions, Fair value vs. Book value, Merger Scope
exemption presumed)
Property, Plant and Equipment
(See sample list of applicable GAAP differences)
Impact
Net worth
Net Income
Disclosures
Efforts
Medium High
Medium - High
Low
Medium
Nil - Low
Low
Nil
Low
Medium - High
Medium - High
Low
High
Share based payments

e.g. Fair value accounting vs. Book value.
Nil-Low
Low-Medium
Nil
High
Financial Instruments
e.g. Forward contracts, IFRS 7 disclosure
Low-Medium
Medium
High
High
Employee Benefits
e.g. Policy of actuarial gains and losses. VRS.
Low
Low
Low
Low
Revenue Recognition
IFRIC 13, Multiple Elements, etc.
Low
Low
Low
Medium
Rakesh Agarwal
Slide 11

Areas
A
Select Components of Financial Statements
Taxes on Income
(B/S Approach, IFRS Adjustments, Defferred Tax on Outside basis etc.)
Foreign Currency Transactions

(Functional Currency determination of foreign branches, Cost plus contracts)
10
First Time Adoption

(Selecting exemptions and exceptions, 1) FV of Fixed Assets, 2) Business
Combinations and Mergers, 3) Actuarial Gains and Losses)
11
Restructuring and Discontinued Operations
12
Impact
Net worth
Net Income
Disclosures
Efforts
Medium High
Medium High
Medium
Medium
Low
Low
Low
Medium
Medium High
Medium - High
High
High
Low-Medium
Low-Medium
Low
Low
EPS
(Impact of IFRS adjustments, Dilution option in subsidiary, if any.)
Nil
Nil
Low
Low
13
Operating Segment
(MIS data vs. Audited Segmental information)
Nil
Nil
High
Low
14
Presentation of Financial Statements

(Making policy choices of format and benchmarking, Fixed deposits)
Nil
Nil
High
High
15
New Businesses/Transactions/ Others

(New Acquisitions, Dividend)
Future
Future
Future
Future
Rakesh Agarwal
Slide 12

Impact
Other Notes
Property, Plant and Equipment ( PP & E)
Net worth
P&L
Disclosures
Effort
Work Stream
Significant areas
IFRS 1 - Deemed Fair Value, Event Driven Organisation
High
High
Low
High
Policy Decision
Revaluation Model
High
High
Medium
High
Policy Decision
Fair Value at time of Business Combinations
Low
Low
Low
Low
Policy Decision
Exchange of Assets
Low
Low
Low
Low
Identifying +
Valuation
Nil Low
Nil - Low
Low
Low
Valuation +
Data capturing
Differences in Indian Accounting Standards for earlier periods
Asset Retirement Obligation
Capitalisation of Borrowing Costs
Low
Low
Low
Low
Data Capturing
Indirect expenditure during trial run
Low
Low
Low
Low
Data Capturing
IFRIC - 4; Capital leasing arrangement within Service

Contracts
Low-High
Low-High
Low
High
Renewal of
Contracts
Leased Assets acquired before April 1, 2000
Nil
Nil
Nil
Low
N.A.
10
Capitalization of Exchange Fluctuation
Low
Low
Nil
High
Data capturing
Rakesh Agarwal
Slide 13

Impact
Other Notes
Property, Plant and Equipment ( PP & E)

Net worth
P&L
Disclosures
Effort
Work Stream
Other matters resulting in differences in capitalization
11
Assets Supplied on Deferred Credit
Low
Low
Low
Medium
Data capturing
12
Less than Rs.5000 assets
Low
Low
Low
Low
Data capturing
Year on Year Impact - Recomputed since capitalization date for each asset
13
Component Approach for Capitalization of Fixed Assets
Low
Low
Low
High
Data capturing
14
Depreciation Rates (Useful Life)
Low
Low
Low
Low
Management
Assessment
15
Residual Value - Revisited at each reporting date
Low
Low
Low
High
Do
16
Residual Life - Revisited at each reporting date
Low
Low
Low
High
Do
17
Recoup of Depreciation on Revalued Assets
Nil-Low
Nil-Low
Low
Low
Data capturing
18
Profit or loss on Sale of Assets
None
Low
Low
High
Data capturing
Rakesh Agarwal
Slide 14
Common Experiences (adjustments) from Indian GAAP to IFRS
Consolidation
Additional entities to be consolidated
Functional currency
Deferred tax on consolidation
Fair value measurement in jointly

control entities
Transitional provision
Property plant and equipment
Change in residual value
Capitalisation of exchange losses
Investments
Change in the fair value of traded

investments
Change in the fair value of

investments classified as available
for sale
Interest income shall be recognised

using effective interest rate method
for investments classified as Held till
maturity
Loans and advances - Interest free loans

shall be fair valued.
Amortisation of goodwill and other

intangible assets
Rakesh Agarwal
Slide 15
Common Experiences (adjustments) from Indian GAAP to IFRS
Share Capital
Redeemable preference shares to be

classified as financial liability
Cost incurred for issuance of
additional equity
Debentures - Premium on redemption

Current liabilities
Other
ESOP Scheme from Parent
Correction of errors
Change in accounting policy
Deferred taxes
Recognition of deferred taxes on

GAAP adjustments.
Recognition of deferred taxes on

items directly debited to reserves
Proposed dividend
Gratuity
Consolidation
Leave
Probability v/s Virtually certain
Termination benefits
Accounting for forward cover
Rakesh Agarwal
Slide 16
Essentials of IFRS
Conversion Approach
Essentials of IFRS Conversion Approach
Rakesh Agarwal
Slide 18

Phased approach - TransitionIFRS methodology
Indian
Rakesh Agarwal
Slide 19

Phased approach - TransitionIFRS methodology
Indian
Objectives
Phase 1
Phase 2
Assess impact of IFRS on F/S
Establish proper governance and project management
Assess how IFRS is currently

impacting the organization
Assess the financial reporting,
business process and systems impact
Deploy Measurement and Disclosure
Checklist
Develop informed business case and
strategy
Outputs
Rakesh Agarwal
High-level assessment of IFRS impact

to F/S including financial reporting,
business process and systems impact
Options for next steps including
strategy with timeline
IFRS Workshop
Phase 3
EvaluationSM
Complete Component
- Establish IFRS policies and determine adjustments
- Assess impact at business unit level
- Evaluate parent company policies and decisions
Develop IFRS shell F/S
Design, build and test IFRS reporting process (dual
reporting period)
Prepare initial IFRS financial statements and recon
(dual reporting period)
Operationalized Project Management Office (PMO)

Documented IFRS policies
IFRS adjustments
Data gaps inventory
Shell annual and quarterly IFRS F/S
IFRS reporting process and system
IFRS financial results for dual reporting period
Develop roadmap to embed IFRS as

primary reporting language
Embed IFRS into financial reporting
processes and systems (corporate and
business units)
Embed IFRS into other financial and
operational processes and systems
Assess whether relevant contractual
agreements and financial covenants reflect
a different basis of accounting
Go live and close project
Prioritized project plan

Data and business requirements
System and configuration requirements
SOX and procedural documentation
Global Chart of Accounts (COA)
Pre- and post-implementation testing
documentation
Slide 20
Project Management Framework

A well thought out project structure on lines below ensures that an entity is able to get
appropriate management focus on project and on technical front get it right the first time which
is very essential for a successful project.
Steering Committee
Decision Maker
Auditor
TRC
Technical Review
Committee
Issue
Originators
INVITEES
Expert
Work Streams
Technical
Champions
Needs
WS1
o Loans
o Investments
o Consolidatio
n
Rakesh Agarwal
WS2
o Financial
Reporting
o Employee
benefits
WS3
o Income
Recognition
o Deferred
Taxes
WS4
o Derivatives
o IFRS 1
o Cash Flows
Technical support material

Roles & Responsibilities
Timelines
Nodal offices
Slide 21
Project Management Framework
Rakesh Agarwal
Slide 22
Project structure
We propose to create a TRC and Working Groups
Rakesh Agarwal
Slide 23
Project structure
Advisory
services
Advisors IFRS implementation services
Centralised vs Decentralised Approach

Levels in IFRS implementation Service
assistance
Provided
Centralised
Additional
Location 1-0
Total
A. Base Scenario (Advisory services)

Training
Yes
Implementation workshop
Yes
IFRS financial sketch for ABC
Yes
Limited (in word file)
Rs 1x
N.A.
Rs 1x
IFRS issue log for ABC Limited
Yes
Ongoing IFRS issue resolution
Yes
and memos
B. Additional services (Blend of advisory services and reasonable involvement in actual conversion)
Excel template (Broad level)
Yes
prepared by management
Rs 2x X 1 = 2x
Assisting management in project
Yes
Rs 1x
Rs 2x X 0.5 = 0.5x
Rs 3.9x
plan
Rs 2x X 0.2 = 0.4x
Guidance by Advisor during
Yes
execution by management
Actual implementation - Full
fledge conversion from ledger or
No
N.A.
N.A.
N.A.
trail balance
Total
Rs 2x
Rs 2.9x
Rs 4.9x
Rakesh Agarwal
Slide 24
Detailed Training Program

Model 4 Days IFRS Workshop (Extracts overview of Financials)
Sr. No. Topics
Train
ing
Level
Durati
on
Proficiency - Break up
A to D
Time Hrs
Concep
ts Basics
Concep
ts
Advanc
ed
Illustra
tion
Multipl
e
Option
s
Comp
any
Specif
ic
(Broad
ly)
GAAP
Differen
ces
Q&A
Extend
ed
Discus
sion
Overview of IFRS (Including

presentation of Financial
Statements)
1.50
Revenue recognition
1.50
Other
Rema
rks, if
any
Conclus
ion
Implementation Workshop
Overview of IFRS
Revenue recognition
Work-stream to evaluate
Draft Accounting policies
- Listing of accounting policies
Draft JV Adjustments
- Structure of Financial statements
Update Issues Log
- Reclassification of Indian GAAP Financials to IFRS
Rakesh Agarwal
Slide 25
Key challenges - mitigation steps / management calls

Key Challenges
Mitigation steps / management calls
Volatility due to fair valuation
SEC study states only 25% are total assets are fair
valued out of which for over 90% of the assets
reference price is readily available.
Change in IT systems
Most IT packages are capable to respond to dual

reporting.
Change in MIS systems
The impact with respect to IFRS 8 is manageable
Taxes
Some implication on MAT.
Managing market, investors and analysts
Early communication Europe experience
Regulatory uncertainty
Worst case scenario, additional cost for early doing

Management to take decision based on corporate
philosophy
Rakesh Agarwal
Slide 26
Preparation of
IFRS financial
statement
Rakesh Agarwal
IFRS Desk Top for Discussion
ABC Limited - Consolidated financial statements

IFRS Desktop for the year ended March 31, 2010
Sr. No.
Nature of adjustments
Impact
Accuracy
Rs. Crs.
(L/M/H)
Net Worth
Amount as per Indian GAAP
558.09
A
Adjustments - Indian GAAP to IFRS
1
Fixed assets, intangibles and lease
M-H
Gestimate
(25.00)
accounting
2
Derivatives
M
Gestimate
(70.00)
3
Rs. Crs.
PAT
116.81
(25.00)
(70.00)
Notes
Audited financial statements
Computation needed
Around 5% of the net asset
base
Actual loss as per the audited
financial statements
Dummy
50.00
Functional currency of subsidiaries, JVs and

branches
Dividends (net impact zero)
Actual
5
6
Debt vs equity classification

Deferred taxes on above
M
L
Dummy
Estimate
(5.00)
(17.00)
B
7
IFRS 1 (1 exemption out of 15 more relevant)

Business combinations
Dummy
- To be concluded
C
8
Transactions with Parent/Group

Group transactions and tax thereon
Dummy
- To be concluded
Total of all adjustments

Amount as per IFRS
Rakesh Agarwal
(67.00)
491.09
50.00
- Dividend for 2008-09 and
2007-08 is the same
(5.00)
(17.00)
(67.00)
49.81
Slide 28
Preparation of IFRS financial statement
Template financial
Issue log
ABC Limited
Issues Log
Sr
Type of Issue
Issue
Property, plant and equipment

1
Measurement
Component Approach
IAS 16
The cost of major overhaul occurring at regular

intervals to be capitalized.
Subsequent costs should be capitalized, that

is recognized as an asset, only if they meet
the recognition criteria that:
a) It is probable that future economic benefits
associated with the item will flow to the entity;
and
b) The cost of the item can be measured
reliably
Deferred term basis
If the Company has acquired a PPE on
deferred term basis and terms are beyond
normal credit terms, PPE will be recognized
on cash price equivalent, i.e. discounted
amount.
Environmental obligation and Asset Costs of dismantling and removing the item or
retirement obligation
restoring the site on which it is located be
recorded when an obligation exists. A liability
for the present value of the costs of
dismantling, removal or restoration as a result
of a legal or constructive obligation is
recognized and the corresponding cost
included as part of the related PPE.
Expenditure during construction
Indirect expenses during construction period
period
which are not required to bring the asset in
the condition for its intended use are
expensed off as incurred.
Change in method of depreciation Change in method of depreciation is
considered as change in accounting estimate
and thereby accounted for prospectively.
Measurement
Major overhaul expenses
Measurement
Subsequent expenditure
Measurement
Recognition
Measurement
Measurement
Technical
Reference
The Company is required to depreciate each

significant component of an item of PPE
separately, if they have significantly different
useful life.
Requirements under IFRS
Requirements under Indian

GAAP
Priority
(H, M, L)
Enquiries / Discussion with

management during the workshop
There is no specific requirement.
IAS 16
The cost of major overhaul

occurring at regular intervals is
charged to Profit and loss A/c
Subsequent expenditure incurred for every

seven years in rayon plant (spinning
machine) needs to capitalised
IAS 16
Subsequent maintenance
expenditure will be capitalized as
part of PPE, if they increase the life
of the plant or increase capacity or
has a benefit for more than a year.
No such cases were reported
PPE is recorded on purchase price.
IAS 16
IAS 16
No provision has been made for

environment and asset retirement
obligation.
No, any purchases are done on deferred

term basis
IAS 16
Indian GAAP allows pre-operative

expenses to be generally
capitalized as part of PPE.
No such cases were reported
IAS 16
Change in depreciation method is

considered as change in
accounting policy, the impact of
change in depreciation method is
determined retrospectively;
computing depreciation under the
new method.
The Company has not changed its method

of depreciation in past.
Similar to IFRS
To assess whether working capital loan has

been included in the general borrowing for
the purpose of calculation of WACC.
Recognition
Borrowing Cost
IAS 23R
Similar to IFRS
To assess whether difference in exchange

fluctuation of foreign currency borrowing
cost has been capitalized.
10
Classification
Leasehold land
The borrowing cost shall be capitalized for

exchange differences on the amount of
principal of the foreign currency borrowings to
the extent of difference between interest on
local currency borrowings and interest on
foreign currency borrowings.
The land is normally classified as an
operating lease unless title passes to the
lessee at the end of the lease term.
Accordingly leasehold land is classified as
operating lease and disclosed as prepaid
assets.
Leasehold land is classified as a

part of fixed assets
To assess whether the title would pass to

the company at the end of the lease term.
IAS 17
Cost of leasehold land is amortised over the

lease period.
IAS 16
No specific requirement.
Whether the current SLM reflects the useful

life of the assets?
There are some PPE which are still in use
but they are fully depreciated viz. cement
plant, paper plant etc.
To assess further any such case where the
life of the PPE has been fully depreciated
Statement of financial position
<--- If this cell is red - there is problem in this sheet

<--- If this cell is red - there is problem in this sheet
Note
AS PER IFRS
PPE
INVESTMENT
PROPERTY
HELD TO
MATURITY
AVAILABLE FOR
SALE FINANCIAL
ASSET
NON CURRENT ASSETS

OTHER
DEFERRED TAX TRADE & OTHER
FINANCIAL
ASSETS
RECEIVABLES
ASSETS
SOURCES OF FUNDS
Share Capital
Reserves and Surplus
93.04
1,402.48
Loan Funds
Secured Loans
Unsecured Loans
1,714.98
43.31
290.08
Fixed Assets (Net Block Incl. CWIP)
2,810.83
46.54
Current Assets, Loans and Advances

Inventories
Sundry Debtors
Cash and Bank Balances
Other Current Assets
Loans and Advances
670.57
150.89
66.54
33.78
672.24
Less: Current Liabilities and Provisions

Liabilities
Provisions
681.02
327.74
Miscellaneous Expenditure
101.26
3,543.89
2,810.83
46.54
670.57
150.89
66.54
33.78
672.24
681.02
327.74
101.26
3,543.89
ASSETS
Noncurrent assets
Property, Plant and equipment
Intangible Assets
Available for sale financial asset
Deferred income tax assets
Derivative financial instruments
Trade and other receivables
Current assets
Inventories
Trade and other receivables, net of allowance for doubtful debts
Investments in bank deposits
Cash and cash equivalents
93.04
1,402.48
1,714.98
43.31
290.08
3,543.89
Assets held for sale and discontinued operations

Total assets
EQUITY
Capital and reserves attributable to equity holders of the
Company
Ordinary shares
Share premium
Retained earnings
Other component of equity
Total equity
APPLICATION OF FUNDS
Investments
IAS 23R
Rakesh Agarwal
AS PER Indian
GAAP
3,543.89
General borrowings shall include working

capital loan amount
Residual value, residual life and method of

depreciation of the asset is required to be
assessed at each balance sheet.
PARTICULARS
Deferred tax liability (Net)
Borrowing Cost
Periodic Review
As discuss the amount is not material
Recognition
Measurement
Financial Statements
Template for IFRS conversion for year ended March 31, 2009
Rs. In Crore
Rs. in Crores
To assess whether any significant

component of an item of PPE having
significantly different useful life.
11
ABC Limited
Sketch financial
2,810.83
6.56
39.28
LIABILITIES
Noncurrent liabilities
Borrowings
Retirement benefit obligations
Other noncurrent liabilities
Deferred income tax liabilities
0.70
Current liabilities
Trade and other payables
Current income tax liabilities
Other current liabilities
Retirement benefit obligations
Borrowings
Provisions for other liabilities and charges
3.21
2,814.04
6.56
39.28
0.70
As on March
31, 2009
6
7
9
21
10
11
12
11
10
14
15
16
16
17
18
20
22
21
19
22
20
23
10
Liabilities of disposal group classified as held-for-sale

Total liabilities
Total equity & liabilities
The accompanying notes form an integral part of these financial statements.
Slide 29
Carve Outs in CIAS from IFRS

IFRS
Converged Indian Accounting Standard
ED AS 1(R) Presentation of Financials Statements

Required that the components of profit or loss and
statement of other comprehensive income shall be
presented in a two statement.
Required that the components of profit or loss and

statement of other comprehensive income shall be
presented in a single statement of profit or loss.
ED AS 3(R) Statement of Cash Flows

Provide an option to other than financial entities to
classify the interest paid and interest and dividends
received as an item of operating cash flows also.
Have to classify the interest paid and interest and

dividends received as an item of financing and investing
cash flows activity.
Provide an option to classify the dividend paid as an

item of operating cash flows also.
Have to classify the dividend paid as an item of

financing activity.
ED AS 15(R) Employee Benefits

Permits various options for treatment of actuarial gains
and losses
Requires immediate recognition of actuarial gain and

loss in profit or loss
Does not provide guidance about the interval for

actuarial valuation of defined benefit obligation
Provide guidance about the actuarial valuation of

defined benefit obligation may be made at interval not
exceeding three years
Rate of government bond can be used as a discount

rate only where there is no deep market of high quality
corporate bonds.
Rate of government bond shall be used to discount post

employment benefits obligation.
Slide 30
Carve Outs in CIAS from IFRS, Contd.

IFRS
Converged Indian Accounting Standard
ED AS 18(R) Related Party Disclosures

Does not have such disclosure.
Disclosures which conflict with confidentiality

requirements of statute/regulations are not required to
be made since Accounting Standards can not override
legal/regulatory requirements.
Does not specifically include such members.
Definition of the close members of the family of a

person ,father, mother, brother and sister are included.
Does not have such disclosure.
Provides for additional disclosure requirements with

respect to related parties, if required by any statute.
Does not have such guidance.
Provides additional clarificatory guidance regarding

aggregation of transactions for disclosure
ED AS 20(R) Earning per share

When an entity presents both consolidated financial
statements and separate financial statements, it may
give EPS related information in consolidated financial
statements only
Required to disclose EPS related information in both

consolidated financial statements and separate financial
statements.
Terminology Difference
Statement of financial position
Balance Sheet
Statement of comprehensive income
Statement of profit and loss
ED AS 41(R) First time adoption of Indian accounting standard

Detail covered in the IFRS 1presentation
Slide 31
Carve Outs in CIAS from IFRS, Contd.

Comparison between CIAS and
IFRS issued by IASB
Publication
Source: PwC Publication Moving Towards Future........

Indian GAAP.
Exposure Draft issued by ICAI
Slide
Slide 32
32
Impact Indian Experience

Transitional experience by India Inc. - Common IFRS Adjustments
No. of
IFRS adj.
Statistics
No. of
IFRS adj.
Infosys Technologies Limited
Wipro Limited
High adjustment
(>20% impact on net-worth / net income)
Tata Motors Limited
10
Dabur India Limited
Medium adjustment
(5% - 20% impact on net-worth / net
income)
Rolta India Limited
10
Low adjustment
(1% - 5% impact on net-worth / net
income)
30
Total
36
Name of the entities
Noida Toll Bridge Co Ltd
Total
36
Nature of adjustment identified by India Inc. in their Financial Statement (Publicly

available)
High impact adjustments
Foreign Exchange Gain or loss of

FCCB liability long term foreign
currency monetary items
Medium impact adjustments
Deferred tax
Gain on repurchase of FCCB
Imputed Interest on FCCB
Low impact adjustments
Reversal of Amortised Goodwill

and intangibles
Share Based Payment
Difference in revenue recognition

norms
Slide 33
Annexure 1: Concepts relatively

new in Indian GAAP
Presentation of financial statement

Consolidation
Business combination
Leases
Functional currency
Deferred taxes
Employee benefits (including
ESOP)
Financial instruments
First time adoption of IFRS
Rakesh Agarwal
Slide 34
Annexure 1: Concepts relatively new in Indian GAAP

Presentation of financial statement
Free form presentation
A complete set of financial statements
comprises:
(a) a statement of financial position as at the end of
the period;
(b) a statement of comprehensive income for the
period;
(c) a statement of changes in equity for the period;
(d) a statement of cash flows for the period;
(e) notes, comprising a summary of significant
accounting policies and other explanatory
information; and
An entity may use titles for the statements

other than those prescribed in IAS 1R,
however the titles used shall not be
misleading.

Consolidation - Special Purpose Entities SIC 12
Activities
Activities of the SPE are being
conducted on behalf of the entity
according to its own specific
business needs
Benefits
Rights to obtain
the majority of
the benefits of
the SPE and
therefore the
risks incident to
the activities of
the SPE;
CIRCUMSTANCES
INDICATING THAT AN ENTITY
CONTROLS AN SPE
AN SPE SHOULD BE
TREATED AS A SUBSIDIARY
Majority of the
residual or
ownership risks
related to the
SPE or its assets
retained by the
controlling entity
Risks
Decision-making powers to obtain

the majority of the benefits of the
activities of the SPE are controlled
by the enterprise directly or
through an autopilot mechanism
Rakesh Agarwal
Decision -making
Slide 36

Consolidation
Key GAAP differences
Uniform accounting policy
More entities are required to be consolidated under IFRS
Rakesh Agarwal
Slide 37

Consolidation
Our experience
Companies need to develop group accounting manual and reporting packages for
preparation of consolidated financial statement with uniform accounting policy and
IFRS compliant figures
Ensuring uniform accounting policy for all the consolidating entity is difficult
Determination of functional currency is complex under certain situation
Rakesh Agarwal
Slide 38

Asset or business acquisition?
What is a business?
IFRS 3 (R) defines it as:
an integrated set of activities and assets conducted and managed for
providing.return to investor or economic benefit to stakeholders.generally consists
of inputs and processes applied to those inputs , and resulting in outputs that are, or
will be used to generate revenues.
If goodwill is present in a transferred set of activities and assets, the transferred set
shall be presumed to be a business.
Rakesh Agarwal
Slide 39

Asset or business acquisition?
Is it a
business?
NO
YES
Do we have
control?
NO
Relevant specific
standard e.g. IAS
28, IAS 31
Relevant specific
standard e.g. IAS 16.
YES
IFRS 3R (and
other standards!)
Rakesh Agarwal
Slide 40

Purchase Price Allocation
almost
Fair value everything!
Areas to watch out for!
Consequences of fair valuing
Rakesh Agarwal
Once we have determined

the cost of a business
combination we need to
allocate the cost to the
identifiable assets,
liabilities and contingent
liabilities acquired.
Slide 41

Assets and liabilities are recognised based on fair value
Amortisation of Goodwill is prohibited
Additional Intangible assets to be recognised on business combinations
Date of acquisition - Transfer on control vs high court orders
Business combination are accounted using purchase method only
Contingent liabilities to be recognised to Income statement
Contingent consideration
Reverse acquisitions
Rakesh Agarwal
Slide 42

Our experience
IFRS 1 - Optional exemption for Business combination has been applied by most of
the companies
Valuation experts with IFRS experience are necessary for purchase price allocation
Issues like reverse merger, merger of entities under common control are very
common under Indian scenario
Rakesh Agarwal
Slide 43

Leases
Application Of IFRIC - 4
IFRIC 4 impact is generally observed where there are Job work arrangements, outsourcing
contracts, power purchase agreements, etc
Rakesh Agarwal
Slide 44

Functional currency
Functional currency - Primary indicators
The currency that mainly influences
sales prices for goods and services
(generally in which sales prices are
denominated and settled)
The currency of the country whose

competitive forces and regulations
determines the sales price of its
goods and services
Functional Currency
The currency that mainly

influences labour, material and
other costs of providing goods
and services
Rakesh Agarwal
Slide 45

Deferred taxes
Temporary difference
All of the temporary differences will give rise to deferred tax balances
Exception: Some are specifically exempted from recognition in the standard
Temporary
Differences
Rakesh Agarwal
TAXABLE TEMPORARY DIFFERENCE

give rise to future taxable amounts
DEDUCTIBLE TEMPORARY DIFFERENCE
give rise to future tax deductible amounts
Slide 46

Deferred taxes
Deferred Tax Asset Recognition
Sufficient DTL available
relating to same tax authority
and same entity
in same period
yes
Recognise DTA
no
Probable sufficient taxable profit
to same tax authority
and same entity
in period of DTA reversal
yes
no
yes
Tax planning opportunities
available to create taxable profits?
No recognition of DTA
no
Rakesh Agarwal
Slide 47

Deferred taxes
Deferred Tax journal entries
Situation
Where deferred tax is recorded
General rule
Income statement
Adjustment to FV on acquisition
Adjust goodwill
Transaction or event recognised in equity
Equity
Rakesh Agarwal
Slide 48

Deferred taxes
Balance sheet approach Vs Income statement approach
Deferred tax shall be recognised on following temporary differences
Revaluation of PPE
Foreign currency translation
Consolidation adjustments
Unrealised gains/ losses of subsidiaries, associates or joint venture
Deferred tax assets shall be recognised based on probability criteria
Rakesh Agarwal
Slide 49

Employee benefits
Option for recognition of actuarial gain or losses to income statement or Other
comprehensive income or corridor approach
Fair value method shall be applied for ESOP accounting
Rakesh Agarwal
Slide 50

Classification - Financial assets
Financial Asset
At fair value through

profit or loss
Held for
trading
Rakesh Agarwal
Originated Loans
and receivables
Held to maturity
Available for sale
Designated
at inception
Slide 51

Classification Financial Liabilities (Two categories)
1. At fair value through profit or loss
Designated at
inception
Held for trading
Intention of short term profit;

Derivatives unless if hedges
Voluntary designation subject

to Certain conditions;
Irrevocable cannot be moved
2. Other financial liabilities

Rakesh Agarwal
Slide 52

Subsequent measurement
Assets/Liabilities at fair value through profit

or loss
At FV through profit
or loss
Loans and receivables

Held to maturity
Available for sale
At amortised cost
At FV through equity
Other liabilities
Rakesh Agarwal
Slide 53

Financial assets
At fair value through profit or loss
Held to maturity
Loans and receivables
Available for sale financial assets
Rakesh Agarwal
Initial
measurement
Transaction
costs
Subsequent
measurement
Recognition
of gain / loss
Fair value
Charge to
Income
Statement
Fair value
Income
statement
Capitalise
Amortised cost
Not applicable
Amortised cost
Not applicable
Fair value
Fair value
Fair value
Capitalise
Capitalise
Fair value
Other
comprehensive
income
statement
Slide 54

Our experience
Use of experts required to handle complex areas
Involvement of treasury professionals is crucial
Volatility in Income statement due to accounting of embedded derivative
Documentation for hedge accounting
Rakesh Agarwal
Slide 55

Optional Exemptions
Business combinations
Compound instruments
Property, plant and equipment,

investment properties, intangibles
Fair value measurement of financial

Instruments on initial recognition
Employee benefits
Cumulative translation differences
Standards
in force at
reporting date
Designation of financial assets and

Financial liabilities
Share-based payments
Transition date for subsidiaries,

associates and joint ventures
Decommissioning liabilities
Leases
Insurance contracts*
Borrowing cost
Service concessions arrangements

Investments in subsidiaries,
associates and joint control entities.
Rakesh Agarwal
Slide 56

Mandatory Exceptions
Estimates
Non controlling interest*
Standards
in force at
reporting date
Hedge accounting
*applicable on or after 1st July 2009,
can be early adopted
Rakesh Agarwal
Slide 57
Annexure 2
Common adjustments
from Indian GAAP to
IFRS
Annexure 2: Common adjustments from Indian GAAP to IFRS

Consolidated Financial Statement
a. Entities to be consolidated ESOP
Q The ESOP trust has XX shares aggregating to USD 50 M
Q The interest on loan given for financing stocks amounted to USD 3 M
Answer
A Dr NW 53,
Rakesh Agarwal
Dr NI 3
Slide 59

b. Functional Currency
Q The amount are recorded In Indian Rupees. Exchange loss already
booked on transaction from USD to INR is (say)10 USD. Had the
transactions been recorded in USD (being its functional currency) the
gains on transaction would have been 15 USD.
Answer
A Cr NI 25,
Rakesh Agarwal
Cr NW - 25
Slide 60

c. Deferred Tax on Consolidation
Q Company intends to realize the undistributed profits of the Joint venture by
way of liquidation through cash dividends in foreseeable future. In previous
year company estimated a notional liability of 30 which increased to 35 at
year end.
Answer
A Dr NW 35,
Rakesh Agarwal
Dr NI 5
Slide 61

d. Fair Value measurement in Jointly Control Entities
Q Company has recorded its investment in JCE at Book value. The net fair
value of all adjustments (excluding goodwill of 100) has the impact of
increase by 50. The depreciation on such increase in FV is 5
Answer
A Dr NW 5,
Rakesh Agarwal
Dr NI 5.
Slide 62

e. Transitional Provisions
Q The impact of transitional provisions under Indian GAAP is Dr NW 20
Answer
A. Cr NW 20,
Rakesh Agarwal
NI 0
Slide 63

Property Plant and Equipment
Given,
1. Method adopted SLM
2. Life 10 years
3. Salvage value zero unless stated otherwise
a. Residual Value
Q The residual value taken under Indian GAAP is 5 for an asset, the original
cost of which is 105. At the beginning of the sixth year, the residual value is
re-estimated and the same asset is expected to have 45 at the end of its
life. The depreciation of 10 was provided during the sixth year under Indian
GAAP. What shall be impact under IFRS for the sixth year
Answer
A Cr NW 8,
Rakesh Agarwal
Cr NI 8
Slide 64

Property Plant and Equipment
Given,
1. Method adopted SLM
2. Life 10 years
3. Salvage value zero unless stated otherwise
b. Exchange gains and losses

Q Exchange loss capitalized 20 as at the beginning of the year
Answer
A Dr NW 18,
Rakesh Agarwal
Dr NI 18
Slide 65

Intangible Assets
a. Amortisation
Q Amortisation of Brands 10
Q Amortisation of goodwill 15
Answer
A Cr NW 25,
Rakesh Agarwal
Cr NI 25
Slide 66

Investments
a. Trading Category
Q The fair market value was higher than it books value by 20 and 35 as at
the beginning and as at the end of the year respectively.
Answer
A. Cr NW 35,
Rakesh Agarwal
Cr NI 15
Slide 67

Investments
b. Available for Sales
Q The fair market value was higher than it books value by 5 and 10 as at the
beginning and as at the end of the year respectively.
Answer
A. Cr NW 10,
Rakesh Agarwal
Cr NI 0
Slide 68

Investments
c. Held till Maturity
Q Company has fully realized the investment at year end by way of
redemption. The interest in effective yield has been 12 where as per
coupon rate is 11
Answer
A. Cr NW 0,
Rakesh Agarwal
Cr NI 1
Slide 69

Loans and Advances
a. Present Values
Q Fair value of interest free loan aggregating to 100 was 70 at the beginning
of the year which increased to 80 during the year
Answer
A. Dr NW 20,
Rakesh Agarwal
Dr NI 10
Slide 70

Share Capital
a. Redeemable Preference Shares
Q The aggregate of redeemable preference shares aggregates to 200
Answer
A. Dr NW 200,
Rakesh Agarwal
Dr NI 0
Slide 71

Share Capital
b. The Initial Cost on account of issuance of additional Equity Shares
Q The initial cost of equity issued during the year is 20. As the same was not
allowed to be carried forward under Indian GAAP (AS 26, intangible asset),
it was expensed off.
Answer
A. Dr NW 0,
Rakesh Agarwal
Cr NI 20
Slide 72

Debenture
a. Premium on redemption
Q It is the contention of the company that the redemption of premium
aggregating to 50 shall be debited to share premium at the end of the loan
debenture term i.e. 5 years. This is the second year closing.
Answer
A NW Dr 20,
Rakesh Agarwal
NI Dr 10
Slide 73

Current Liabilities
a. Dividend - New
Q Proposed dividend at year end is 20
Answer
A Cr NW 20,
Rakesh Agarwal
Dr NI 0
Slide 74

Current Liabilities
b. Gratuity
Q The actuarial loss during the year is 6. The accumulated actuarial loss at
the beginning of the year is us 0. Presume that these numbers remained
same both under Indian GAAP and IFRS. However, the company has
adopted corridor approach under IFRS
Answer
A Cr NW 0,
Rakesh Agarwal
Cr NI 6
Slide 75

Current Liabilities
c. Leave
Q The Company provides for leave accruals on basis of its Basic Pay + DA
which constitutes 50 % of the CTC. The leave accruals increased from 20
to 25 during the period. Presume that company follows FIFO method of
leave
Answer
A Dr NW 25,
Rakesh Agarwal
Dr NI 5
Slide 76

Current Liabilities
d. Termination benefits
Q The expected cost of VRS (not accepted) by employee is 40
Answer
A Dr NW 40,
Rakesh Agarwal
Dr NI 40
Slide 77

Current Liabilities
e. Accounting of Forward Cover New
Q The company has entered into forward contracts having its gross premium
20 for a period of 6 months. As on the year end 3 months has expired, the
company amortized Rs.10 under Indian GAAP, it also obtained Mark to
Market on the said forward cover for the remaining term of maturity where
the Market Value is Rs.16.
Answer
A Cr NW 6,
Rakesh Agarwal
Cr NI 6
Slide 78

Revenue
a. Entitlement basis
Q Oil Extracted but another venturer at MV 100. The company shall lift the
extra quantities in subsequent month. Presume impact of depletion and
other operating cost as 20
Answer
A Cr NW 80,
Rakesh Agarwal
Cr NI 80
Slide 79

Revenue
b. Production Testing Revenue Oil and Gas
Q Production testing revenue taken to income 10. Net margin is 80 %
Answer
A Cr NW 0,
Rakesh Agarwal
Dr NI 8
Slide 80

Expenses
a. ESOP Scheme from Parent
Q The value of stock options granted and vested during the period by parent
co. to employees of the co is 80
Answer
A Cr NW 0,
Rakesh Agarwal
Dr NI 80
Slide 81

Expenses
b. Leave As above
Done in current liabilities
Rakesh Agarwal
Slide 82

Expenses
c. Gratuity Actuarial Gains and Losses
Done in current liabilities
Rakesh Agarwal
Slide 83

Expenses
d. Correction of Errors
Q Included in Income statement are errors of prior period charged to P& L
aggregating to 8
Answer
A Cr NW 0,
Rakesh Agarwal
Cr NI 8
Slide 84

Expenses
e. Changes in Accounting Policy
Q The cumulative catch up adjustments for a change in accounting policy
(depreciation) is reduction in depreciation by 16
Answer
A Cr NW 0,
Rakesh Agarwal
Dr NI 16
Slide 85

Deferred Tax
Given - The tax rate is 30 %
a. GAAP Adjustments from Indian GAAP

Q How do you work out the DT impact of US GAAP ADJUSTMENTS
Answer
A Balance Sheet Approach
Rakesh Agarwal
Slide 86

Deferred Tax
b. Items debited to reserves

Q An item of expenditure amounting to 30 was debited to reserves.
Answer
A Cr NW 9,
Rakesh Agarwal
Cr NI 0
Slide 87

Deferred Tax
c. Consolidation
Q List of inter-company profits getting eliminated on consolidation 20
Answer
A Cr NW 6,
Rakesh Agarwal
Cr NI 6
Slide 88

Deferred Tax
d. Outside Basis
Done in Consolidation
Rakesh Agarwal
Slide 89

Deferred Tax
e. Probable v/s Virtually certain

Q The unabsorbed losses c/f from earlier period reduced from 200 to 150.
The was not recognized under Indian GAAP as the Company was not
virtually certain though it was probable
Answer
A Cr NW 45,
Rakesh Agarwal
Dr NI 15
Slide 90
Annexure 3
Select IFRS tools and

publications
Annexure 3: Select IFRS tools and publications

PricewaterhouseCoopers has a range of tools and publications to help companies apply IFRS
Similarities and Differences:

A Comparison of IFRS, US GAAP and Indian GAAP.
This new edition has been completely redesigned to
make it user-friendly and the key features of the new
publication are:
1) Provides insight as to the impact of key differences
between IFRS, US GAAP and Indian GAAP,
2) Provides context of how the conversion to IFRS has
ramifications far beyond the accounting department, and
3) Encourages early consideration of what IFRS means to
your organisation.
This publication is available on www.pwc.com/india
Rakesh Agarwal
Slide 92

A practical guide to share-based payments
Answers the questions we have been asked by entities
and includes practical examples to help management
draw similarities between the requirements in the
standard and their own share-based payment
arrangements. November 2008.
Guide aimed at finance directors, financial controllers

and deal-makers, providing background to the
standard, impact on the financial statements and
controls, and summary differences with US GAAP.
A practical guide to new IFRSs for 2009
IFRS disclosure checklist 2009
40-page guide providing high-level outline of the key

requirements of new IFRSs effective in 2009, in
question and answer format.
Outlines the disclosures required by all IFRSs

published up to October 2009.
A practical guide to capitalisation of borrowing

costs
Guidance in question and answer format addressing the
challenges of applying IAS 23R, including how to treat
specific versus general borrowings, when to start
capitalisation and whether the scope exemptions are
mandatory or optional.
IAS 39 Derecognition of financial assets in

practice
Explains the requirements of IAS 39, providing answers
to frequently asked questions and detailed illustrations
of how to apply the requirements to traditional and
innovative structures.
Rakesh Agarwal
IFRS 3R: Impact on earnings the crucial Q&A for

decision-makers
IFRS pocket guide 2009

Provides a summary of the IFRS recognition and
measurement requirements. Including currencies,
assets, liabilities, equity, income, expenses, business
combinations and interim financial statements.
IFRS news
Monthly newsletter focusing on the business
implications of the IASBs proposals and new
standards. Subscribe by emailing
corporatereporting@uk.pwc.com.
Slide 93

A practical guide to segment reporting
Illustrative consolidated financial statements
Provides an overview of the key requirements of IFRS

8, Operating Segments and some points to consider
as entities prepare for the application of this standard
for the first time. Includes a question and answer
section. Also available: Eight-page flyer on high level
management issues.
Banking, 2009
Insurance, 2009
Investment property, 2009
Private equity, 2009
Investment funds, 2009
Realistic sets of financial statements for existing
IFRS preparers in the above sectors illustrating the
required disclosure and presentation.
Understanding financial instruments

Adopting IFRS A step-by-step illustration of the
transition to IFRS
Illustrates the steps involved in preparing the first IFRS
financial statements. It takes into account the effect on
IFRS 1 of the standards issued up to and including
March 2004.
Financial instruments under IFRS
High-level summary of the revised financial instruments
standards issued in December 2003, updated to reflect
IFRS 7 in September 2006. For existing IFRS preparers
and first-time adopters.
IAS 39 Achieving hedge accounting in practice

Covers in detail the practical issues in achieving hedge
accounting under IAS 39. It provides answers to
frequently asked questions and step-by-step
illustrations of how to apply common hedging
strategies.
Rakesh Agarwal
A guide to IAS 32, IAS 39 and IFRS 7

Comprehensive guidance on all aspects of the
requirements for financial instruments accounting.
Detailed explanations illustrated through worked
examples and extracts from company reports.
SIC-12 and FIN 46R The substance of control

Helps those working with special purpose entities to
identify the differences between US GAAP and IFRS
in this area, including examples of transactions and
structures that may be impacted by the guidance.
Acquisitions Accounting and transparency

under IFRS 3Rd
Assesses the impact of the standard, highlighting the
key issues for management and raising questions for
the Board
Slide 94

IFRS manual of accounting 2010
Global guide to IFRS providing comprehensive practical
guidance on how to prepare financial statements in
accordance with IFRS. Includes hundreds of worked
examples and extracts from company reports. The
Manual is a three-volume set comprising:
Manual of accounting IFRS 2010
Manual of accounting Financial instruments 2010
Illustrative IFRS corporate consolidated financial
statements for 2010 year ends
Comperio Your path to knowledge

Online library of financial reporting and assurance literature. Provides the full text of IASB International Auditing Practice Statements and
IPSAS. Also contains PwCs IFRS and corporate publications, and Applying IFRS. For more information, visit www.pwc.com/comperio
Making the change to IFRS

This 12-page brochure provides a high-level overview of the key issues that companies need to consider in making the change to IFRS
IFRS for SMEs Is it relevant for your business?

It outlines why some unlisted SMEs have already made the change to IFRS and illustrates what might be involved in a conversion process.
Rakesh Agarwal
Slide 95
Thank You
Rakesh Agarwal
Associste Director, PricewaterhouseCoopers
E-mail : rakesh.r.agarwal@in.pwc.com
Mobile : +91 9820273458

IFRS in India Its Status Overview of Concepts and Impact in India 23 January 2011

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IFRS in India Its Status, Overview of

Concepts and Impact in India

Phased approach Transition IFRS methodology

Project management framework

Centralised approach v/s decentralised approach

Detailed Training program

Key challenges - mitigation steps / management

Preparation of IFRS Financial Statements

Top 10 Global Capital Markets

IASC Constitution The Current International Financial

The Preface and The Framework

4. Elements of financial statements, recognition and measurement

The different levels of IFRS

International Financial Reporting

International Financial Reporting

Exposure Drafts and

IFRS in India Its Status, Overview of Concepts and Impact in India

Applicability of IFRS in India

Companies listed or not,

Listed companies having a

Companies whose shares

All scheduled commercial

Companies listed or not,

Urban co-operative banks

Urban co-operative banks

NBFCs (all other Listed)

NBFCs - Nifty 50 or Sensex

IFRS in India Its Status, Overview of Concepts and Impact in India

Mapping IFRS and CIAS (Converged Indian Accounting Standards)

Name of the standard

Presentation of financial statements

Property, Plant and Equipment

The effects of changes in Foreign Exchange Rates

Related Party Disclosure

Earnings Per Share

Consolidated and Separate Financial Statements

IFRS in India Its Status, Overview of Concepts and Impact in India

Mapping IFRS and CIAS (Converged Indian Accounting Standards)

Name of the Standard

Non-Current Assets Held-For-Sale and Discontinued

Interest in Joint Ventures

Provisions, Contingent Liabilities and Contingent Assets

Financial Instruments: Recognition and Measurement

Financial Instruments: Presentation

Financial Instruments: Disclosures

Financial Reporting in Hyperinflationary economies

Exploration for and Evaluation of Mineral Resources

Accounting and Reporting by Retirement Benefit Plans

First time adoption of Indian Accounting Standards

IFRS in India Its Status, Overview of Concepts and Impact in India

Potential Impact of IFRS on consolidated financial statements of

Select Components of Financial Statements

Property, Plant and Equipment

(See sample list of applicable GAAP differences)

Share based payments

IFRS in India Its Status, Overview of Concepts and Impact in India

Potential Impact of IFRS on consolidated financial statements of

Select Components of Financial Statements

Foreign Currency Transactions

First Time Adoption

Restructuring and Discontinued Operations

Presentation of Financial Statements

New Businesses/Transactions/ Others

IFRS in India Its Status, Overview of Concepts and Impact in India