India will put off implementation of the International Financial Reporting Standards (IFRS) for now but has introduced new rules that require greater clarity about the finances and liquidity position of large companies, reports the India Times.
According to the Times, schedule VI, which is a part of the present company law, requires companies to separate assets and liabilities into current and non-current categories, a classification missing from financials as of now. The schedule is a format of presenting financial information by companies and not an accounting standard.
The new rule will be implemented in a phased manner starting April 1, 2011. Quoting AK Srivastava, joint secretary of the Ministry Of Corporate Affairs, the Times says that in the first phase, companies with a paid up capital of over 5 crore will be required to prepare their income statement and balance sheet as per the revised schedule.
The ministry is also requiring companies to report their accounts using a computer-readable reporting language called XBRL (extensible business reporting language).
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