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The small and medium enterprises (SMEs) of the nation will be free from the hassles of preparing their accounts according to the International Financial Reporting Standards (IFRS) from April 1, 2011.
The small and medium enterprises (SMEs) of the nation will be free from the hassles of preparing their accounts according to the International Financial Reporting Standards (IFRS) from April 1, 2011. The move will help them save cost. This has been decided by a panel constituted by the government on IFRS.
The adherence to IFRS is an expensive affair for SMEs as it includes an overhaul of operational and IT processes apart from training costs. This acts as an obstacle to the growth of SMEs. In November last year, the government had hinted at preparing a watered-down version of IFRS for the SMEs.
According to Institute of Chartered Accountants of India (ICAI) all companies listed with NSE and BSE, companies with foreign borrowings of more than Rs 500 crore and also those with net worth in excess of Rs 1,000 crore will have to follow IFRS.
