How should we address the need for financial information prepared under both Indian GAAP and IFRS?
Companies will need to be in a position to report under Indian GAAP for the year ended 31 March 2011. March 2011 numbers may also have to be restated to comply with IFRS for comparative purposes. This will mean the balance sheet at 1 April 2010 will need to be restated. It is not yet clear whether IGAAP reporting may be required in the future for the purposes of corporate tax computations. Therefore companies may require the ability to continue ‘dual reporting’ for some years in order to comply with both taxation and financial reporting regulations. Companies can either conduct dual GAAP accounting throughout the transition period – which could be in multiple years – or some form of restatement from Indian GAAP to IFRS at each reporting date.
