Abhishek Pandey, Managing Director in the Valuation Advisory Services practice at Duff & Phelps, shares his views on how banks should gear up for implementation of Ind AS.
The Reserve Bank of India’s (RBI) deferment of implementation of Indian Accounting Standard (Ind AS) by a year is an opportune time to discuss the roadmap of Ind AS adoption and its overall impact.
In contrast to Indian Generally Accepted Accounting Principles (IGAAP), which is a rule-based accounting framework, Ind AS is a principles-based framework. Such a framework allows greater flexibility and it doesn’t prescribe a one-size-fits-all approach. Though its broad guidelines can be practical for a variety of circumstances, it can also be prone to manipulation because of its flexibility. Hence, the onus on ‘Disclosures’ is much higher under Ind AS compared to IGAAP.
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