The government plans to dilute some key provisions in the IFRS relating to foreign exchange differences and overseas borrowings.
Citing an anonymous source, the Times says the government is looking at an option where companies need not provide for any loss in the profit and loss statement but rather just carry forward the value as at the end of March 2011.
"Both dilutions has huge upside for India Inc in the short term by helping it to avoid reporting such MTM losses prescribed by IFRS. But it may work to its detriment in the long term by making companies unattractive to global investors," writes the Times.
“Our books (of account) will not be respected by the outside world (if we make such dilutions),” V Balakrishnan, chief financial officer of Infosys, told the Times. “The whole approach is wrong. We should have adopted IFRS instead of converging.”
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