New accounting norms to help attract foreign capital: EY

Implementation of new accounting standards, converged with international norms, would further boost India's ability to attract foreign capital and access global capital markets, says a report by consultancy EY.

However, it has also cautioned that there are challenges which need to be addressed on a priority basis for implementation of new accounting standards.

The Indian Accounting Standards (Ind AS) are converged with the International Financial Reporting Standards (IFRS), which is being followed in more than 100 countries.

In a report focused on 'Roadmap on adoption of Ind AS', the consultancy said its implementation would result in significant benefits to Indian companies as well as the country as a whole.

Adoption of Ind AS would give "the right signal to the world about corporate India's move towards better governance and greater transparency which will further strengthen the country's ability to attract foreign capital," EY said.

In his Budget speech on July 10, Finance Minister Arun Jaitley had said there was an urgent need to converge the current Indian accounting standards with IFRS.