India to Change Companies Act in Compliance with Accounting Standards

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Jan. 14 – The government is planning to soon revise the Companies Act to make it easier for Indian accounting standards to merge with the International Financial Reporting Standards.

The schedule-VI and XIV will be changed along with other standard accounting rules to facilitate convergence. The government wants to adopt an internationally accepted accounting standard by April 2011.

“The ministry will carry out the exercise for necessary amendments in the Companies Act in the forthcoming budget session of parliament,” the corporate affairs ministry said in a statement.

A core group of officials from the ministry of corporate affairs and finance, the Reserve Bank of India and regulators from various related fields met Tuesday to finalize the schedule for adopting the new standards reports The Economic Times.