IFRS @ 50 years : the journey from 1973 to 2023

A 6 minute video of journey of IASB( IASC) in IFRS standard setting.?

https://www.dhirubhai.net/search/results/all/?keywords=50%20years%20IFRS%20&origin=GLOBAL_SEARCH_HEADER&sid=3AN

India role has been substantial.

1. Right from 1977, all our AS ( except AS 22) were based on corresponding IAS/IFRS ; more so since 1998 every standard ( AS 7,10, 15 and 16 to 29)
2. Ind AS ( converged with IFRS) sans minor carve outs for transition and some conceptual items on which there is WIP, is same as IFRS. When India implemented Ind AS in 2015 several Indian companies chose not to avail the carve outs which were optional and demonstrated ability to comply with IFRS in full. SEBI had for a brief period in 2000s allowed Indian companies listed to prepare Consolidated Financial Statements using IFRS and several companies did prepare in IFRS.?
3. India is the jurisdiction which effectively follows IFRS the most. Ind AS is followed by: a. All listed companies : 5th largest in world in market capitalisation ( countries like Japan, encourage use of IFRS and is not mandatory; US allows Foreign Private Issuers to follow IFRS; this leaves China who follows IFRS also in converged mode and Hongkong which has companies following multiple GAAP). b. Unlisted Companies with equity as small as $30Mn ( Rs.250cr). Globally unlisted companies follow largely local GAAP or IFRS for SME.?The unlisted companies below $30Mn equity follow AS framework which is also developed based on IAS/IFRS and ICAI is presently working on a project of revising this framework which will take it closer to Ind AS.
4. IFRS Foundation (governing body): Has 22 Trustees. At present 2 are from India : Sri Vinod Rai ( Former C&AG) and Sri Koushik Chatterjee( ED and CFO of Tata Steel). Sri Mohandas Pai ( Former Infosys CFO), Sri C B Bhave ( Former SEBI Chairman) have also served as Trustees. They are Trustees in their individual capacity having got selected from across Asia jurisdiction, solely on their merit and ability to give the Governance oversight and promote IFRS adoption across countries.
5. IFRS Advisory Council: Body which gives strategic advice to IFRS Foundation, IASB and ISSB. Sri Malegam, Sri N P Sarda, Past Presidents of ICAI; Sri Suresh Senapathy (former CFO of Wipro), Sri Sankariah ( CFO of Jubilant) have served as member of this Council?
6. International Accounting Standards Board : Full time position based at London for 5 years. Sri Prabhakar Kalavacherla has represented his firm ( working in US) as a full time member?
7. IFRS SMEIG : Dr Raj Kumar Adukia in the past and Sri Pramod Jain, present Chairman of ASB of ICAI serve in this group which works on developing and implements IFRS for SME.
8. Asia Oceanian Standard Setting Group ( Regional Group of IASB of about 26 countries): Dr Zaware, Chaired this group for 2 years ( was VC for 2 years before) and represented AOSSG at Accounting Standards Advisory Forum of IASB which discusses technical aspects.
9. Global Preparers Forum of IASB : Several from India Mr Sanyal ( TCS), now ?Amrita Srikanth ( Infosys)are members of this forum. Don’t recall names readily but several from India have been in this forum
10. ICAI has played host to several events of IASB ; AOSSG meetings, IFASS, etc. ICAI regularly participates in every forum of IASB ( EEG, IFASS, WSS and presents technical papers/ chairs sessions)
11. International Standards Setting Board ( ISSB) was formed in 2021. The IFRS Foundation Trustees meeting to deliberate and announce this was to be done at a meeting hosted in Delhi. However, due to pandemic, it turned out to be a virtual meeting due to Pandemic.
12. Several Indian companies participate in field testing of new standards at development stage. Due to confidentiality, not sharing names; but proud to see India Inc contribution in development of IFRS.On every document from IASB right from discussion papers to proposed amendments, ASB of ICAI through its members ( branch network) actively deliberate and contribute insights to IASB for their standard setting process. ASB work continues to be enviable and I bow down to all the ASB members, the SMEs of various groups across the country who give enormous amount of their time to ASB for these engagements. On every document of IASB, there would be a comment letter from ASB after due process of consultation within India either agreeing or where disagreeing giving rationale and alternate solution. ICAI has also contributed actively in international multi jurisdiction groups in developing standards (example on IAS 41 Agriculture). Each year the President, VP , the Chairman, VC and Secretary of ASB actively participate in WSS, IFASS, EEG, AOSSG and other key meetings, also bringing back with them the experience of global standard setting and insights into future projects. India’s implementation of IFRS is a very successful case study of how ICAI collaborated with all stakeholders, built capacity and enabled plenty of guidance f or smooth implementation.ICAI had done exceptionally good work in capacity development, conducting Ind AS certification courses and developing Education material on almost 30 standards. ICAI as part of its student curriculum has been training its students in Ind AS with in-depth knowledge. Over 50,000 CAs work overseas predominantly middle east and have experience of preparing and auditing FS in IFRS. Majority of the Fortune 500 companies have their accounting back office (shared services) in India and at least 50,000 CAs work in these companies and have hands on work experience in IFRS / US GAAP.?This is a huge testimony of Indian CAs strength in development and implementation of a global accounting framework.
13. India was the jurisdiction to implement IFRS 9 ahead of rest of the world. NBFCs who presently follow Ind AS have embraced the standard pretty easily and am sure Indian Banks will also be able to do same, with RBI guidance.
14. We should see Banks and Insurance companies embrace Ind AS either 1.4.25 or 1.4.26 ; both regulators and importantly the entities themselves appear to be keen to move from AS to Ind AS.
15. There are several Indian chartered accountants who serve as staff of IASB developing standards and developing XBRL taxonomy. CA Raghava was a staff who worked on IFRS 15 development project and later in project of Goodwill impairment. There are several CAs who have worked and are presently working in IASB. Not naming all as I might risk missing out many names; took liberty of mentioning Raghava as he was my student while pursing CA.?

In this 50th year, I am fortunate to be part of IFRS Interpretation Committee ( IFRIC) of IASB in individual capacity and as representative of SAFA/ICAI in IFRS Advisory Council and of ICAI in SMEIG. Have been doing my best to contribute, but I have been a net gainer, observing closely and ?learning the robust and highly objective process followed in standard setting. The last 30 seconds of the video sums this in current IASB Chair Andreas words? viz., we engage with all stakeholders, listen, reflect and where necessary push back and explain.

IFRS are global standards developed with India active contribution and am witnessing proudly ICAI, Indian Accounting professionals and India Inc , actively contributing to development and consistent application of IFRS.?

Ind AS is effectively IFRS and these are not imported standards. We need to recognise that IFRS does not belong to any specific country. These are truly global standards developed with active contribution from accounting professionals across the world and India has been contributing very significantly thanks to ICAI, ASB of ICAI and the very strong Technical Directorate of ICAI which has been ably led by SMEs over several decades and I was fortunate to interact or work with a few whose commitment to ICAI and quality financial reporting by India Inc make one feel very proud of.

P.S: Apologies, if I have missed out names of any persons from India who have been part of IFRS Foundation several arms.