The government said on Wednesday the process of converging Indian accounting standards with global standard, IFRS, will continue that would help Indian Inc in tapping international markets with reduced cost of compliance.
The government has already notified 28 accounting standards for Indian corporates and would assess more standards for notification, an official release said.
"The government would examine further accounting standards to be followed by companies, on the basis of the standards proposed by ICAI, subject to the recommendations of NACAS thereon, for notification in accordance with the procedure laid down under the Companies Act, 1956," it said.
In the process, the approach of convergence with IFRS would be continued so that the financial information disclosed by Indian companies compares well with that disclosed by non-Indian companies in compliance with International Financial Reporting Standards, it added.
The statement assumes importance as Indian companies listed on European stock exchanges will have to comply with both IFRS and Indian accounting standards (IAS) from next year, in case the two set of standards are not converging.
Time till 2011 would be given for IAS to converge with IFRS, in case India makes a declaration that the two standards are synchronising.
Recently, ICAI President Ved Jain had said the European Commission wanted India to make a declaration by June 30 this year that IAS are converging with IFRS. He said of the 38 IAS, seven have absolutely converged with IFRS, while work is going on for upgrading the remaining 31 standards.
