Advisory body seeks deference of adoption of IndAS standard

The National Advisory Committee On Accounting Standards (NACAS) recommended to the government that India defer its adoption of the Indian Accounting Standard 115 on revenue recognition. This standard was one of the 10 standards notified by the government earlier this year, as India converges with IFRS starting next year. India was slated to be an early adopter of the International Financial Reporting Standards (IFRS) revenue recognition standard. But since the global standard itself is under review, NACAS has recommended a deferral of the Indian standard as well.CNBC TV18'S Menaka Doshi spoke to NACAS Chairman Amarjit Chopra to find out more about this.Chopra said: "We were of the view at NACAS that we don't need to defer it simply because IASC is deferring it. We should defer it only if there are technical issues involved."  So, NACAS yesterday went into the various technicalities, thereof, and we came to a conclusion that probably this standard is not definitive as yet because FASB might be coming out with two more exposer drafts. They have already come out with one exposer draft. Exposed to those comments there could be certain changes with regard to core principles in the standard itself. So, it may not be the right time to implement India's 115.When asked if foresees any operation dificulties as companies move to IndAS sans this revenue recognition standard, he said: "There will not be proceedings sans revenue recognition, there will be proceedings along with revenue recognition. It may not be, I am only using the word it may not be because depending upon government's action it could be IndAS18, along with IndAS11 & IFRS 15 you can carve out."However NACAS has not recommended a new date for adoption of the revenue recognition standard. The government will take a final view on its applicability.