Kasb Funds

Move to IFRS (International Financial Reporting Standards) through a set of convergence of accounting standards, as announced by India is a line very contradictory, but think, observe TP Ghosh, Professor at the Institute of Management Technology, Dubai International Academic City, UAE.

To begin, it may be useful to know why there is a growing interest among all participants in financial markets, including the SEC in the United States to accept a single set of accounting standards solids. Many multinational companies and national regulators and users of global standards for support because they believe that the use of common standards in the preparation of public company financial statements, it will be easier to compare financial results reporting entities from different countries, "says Ghosh, through interaction with the latest online business on the phone and email.

"They believe it will help investors better understand the possibilities. The large public companies with subsidiaries in several countries would be able to use one accounting language across the company and present their financial statements in the same language than their competitors. Interestingly, 90 percent of respondents to a survey in 2007 IFAC said the adoption of IFRS is very important or important for economic growth (www.ifac.org). "

Ghosh What worries is that many countries that claim to be converging to international standards can never achieve full compliance. "Most reserve the right to selectively cut or modify standards they do not consider in their national interest, an action that could lead to incomparability - the same question that IFRS are intended to address."

Excerpts from the interview:

Overall, the debate IFRS to be locked into the rhetoric? Is there a lack of harmony in the understanding of terms associated with International Financial Reporting?

Eventually, the measure of the fair value of assets and liabilities are not properly collected. In particular, there is confusion on the methodology for measuring the fair value of unlisted financial assets at initial recognition and subsequent measurement is not well understood.

Nevertheless, the concept becomes IFRS adequate acceptance. Of course, in many countries the key issue is the diminishing role of national standards bodies in the post-adoption of IFRS. In the case of convergence, the national standards bodies can retain their roles and responsibilities.

Of course, there are some serious conflicts, such as depreciation over the regulatory minimum depreciation accounting, prudential and provisioning against the accumulated losses of provisioning approach. There is the fear of under-depreciation or under-provisioning.

International standardization bodies are concerned over-conservatism. National regulators could avoid this debate by creating regulatory reserves. dividend distribution policy can be easily resolved by taking care of the level of retention.

To add to our woes, there is also confusion about the term convergence. Malaysia wishes to converge with IFRS by 2012, but "convergence with IFRS means full compliance with IFRS as a basis for financial information system in Malaysia." On January 28, 2010, the Brazilian Federal Accounting Council and the Brazilian accounting pronouncements Committee signed a Memorandum of Understanding (MoU) with the IASB that defines the end of 2010 as the target date for full convergence with IFRS and establishes a framework for future cooperation, cooperation between organizations.

Korea Accounting Standards Board (KASB) has adopted IFRS as IFRS Korean (K-IFRS) which are completely identical to IFRS with the exception of temporary differences for newly issued IFRS. K-IFRS are proposed to be updated as changes IFRS.

K-IFRS Wil.