The Indian corporate sector expects greater clarity on the implementation of International Financial Reporting Standards very soon as about 500 companies await transition to IFRS from the Indian Generally Accepted Accounting Practice (IGAAP).

‘There are few implementation issues on which greater clarity is expected very soon,’ Jamil Khatri, Executive Director and Head - Accounting Advisory Services of KPMG and member of a IFRS sub-committee today told reporters.

Speaking on the sidelines of a seminar, jointly organised by KPMG and Indian Chamber of Commerce, Mr Khatri said there were two sub-committees under the core group formed for IFRS implementation.

The country would move to IFRS accounting standards from IGAAP by 2014 in phases.

Some 400-500 companies are expected to come under the first phase of implementation.

The core group is under the chairmanship of the Secretary, Ministry of Corporate Affairs.

Mr Khatri said among the issues that needed clarification was--should non-banking financial companies besides insurance companies and banks be excluded in the first phase of implementation, beginning in April, 2011. Clarification has also been sought on the change of eligibility status in 2011.

According to the norms, companies those have to abide by IFRS standard by April 2011 are the companies that are listed with Sensex, Nifty or in the overseas market and having a networth exceeding Rs 1,000 crore.

UNI