Core group approves accounting roadmap for insurance firms, banks and NBFCs
31 Mar 2010
The core group constituted by the ministry of corporate affairs for convergence of Indian accounting standards with international financial reporting standards (IFRS) has accepted the roadmap for insurance companies, banking companies and non-banking companies.
The core group, which met on 29 March under the chairmanship of R Bandyopadhyay, secretary in the ministry of corporate affairs, approved the roadmap recommended by sub-group I in respect of insurance companies, banking companies and non-banking finance companies.
As per the roadmap recommended by the sub-group, all
insurance companies will convert their opening balance sheet as on 1 April 2012 in compliance with the converged Indian Accounting Standards.
All scheduled commercial banks and those urban co-operative banks (UCBs), which have a net worth in excess of Rs300 crore, will convert their opening balance sheet as on 1 April 2013 in compliance with the first set of accounting standards (ie, the converged Indian Accounting Standards).
Urban co-operative banks which have a net worth in excess of Rs200 crore but not exceeding Rs300 crore will convert their opening balance sheets as on 1 April 2014 in compliance with the first set of accounting standards (ie, the converged Indian Accounting Standards).
Urban co-operative banks which have a net worth not exceeding Rs200 crore and Regional Rural banks (RRBs) will not be required to apply the first set of accounting standards, ie, the converged Indian Accounting Standards (though they may voluntarily opt to do so) and need to follow only the existing notified Indian Accounting Standards which are not converged with IFRSs.