Convergence with International Finance Reporting Standards will catalyse the growth of Indian economy and put Indian chartered accountants in an advantageous position in the global market, said Mr T V Mohandas Pai, Director (HR and Administration) and Member of the Board, Infosys Technologies Ltd.
Speaking at a special address on ‘IFRS - A Global Standard,’ on Monday in city, Mr Pai said that all the countries adopting the same accounting system would reduce the cost of investment for Indian companies.
To achieve 10 per cent growth in the GDP in the next 10 years India would need around 40-50 billion US dollars.
Once the world moves to IFRS access to capital would be much cheaper. Presently, Japan is sitting on 14 trillion US dollar savings, while US has 15-16 trillion US dollars. In the next 10-years, China will be one of the major player in terms of capital investments. IFRS will make listing agreements common to all the countries, he noted.
Since all the account systems will be common, the cost of compliance will come down during company acquisition process. Besides, many countries have shortage of quality account service personnel and India will be largest supplier of quality account service, Mr Pai added.
Stating that India will be on the cutting edge of global accountancy, he said that once IFRS is in vogue, Indian professionals will start entering into global policy making bodies. “Indians can take lead in developing future standards in accountancy,” he added.
International Accounts Standard Committee (IASC) Chairman Mr Philip Laskawy said that IFRS is aimed at making accountancy more principle-based.
Over 100 countries have either adopted or are in the process of adopting IFRS. Latest by 2011, IFRS will be adopted by all the countries. “The breakthrough came to us last year, when US financial companies were asked to file their financial reports as per the recommendations of IASC,” Mr Laskawy added.
