India to impose new accounting standards on banks

International Financial Reporting Standards to be implemented in 2016.

The Reserve Bank of India, the central bank, has received recommendations on the implementation of IFRS standards by banks. Sources said IFRS will be merged with India’s current accounting norms.

Companies having a net worth over US$1.8 billion and up to US$917 million should implement IFRS from April 1, 2016. Those with a net worth below US$183 million but listed will implement IFRS on April 1, 2017.

The recommendations, however, are not applicable for banking, insurance and NBFC companies.

"For NBFCs, we have recommended a three-phase approach based on their net worth, just like for corporates," said ICAI President Subodh Kumar Agrawal.

The Institute of Chartered Accountants of India has already given a tentative roadmap for implementation of IFRS standards to the Corporate Affairs Ministry.