Road Map to IFRS Convergence in India–Realistic or Fantasy?

India's convergence with International Financial Reporting Standards (IFRS) was to take place in three phases. Large Companies, included in the Nifty 50, the top 50 stocks listed on the National Stock Exchange, or the Bombay Stock Exchange Sensitivity Index, or that have a net value over Rs1000 crores ($224 million), were supposed to convert their balance sheets in line with IFRS, beginning April 1, 2011. Companies, not covered in the initial phase with more than Rs500 crores, are to make the switch in April of 2013 while the other listed companies are to follow in 2014. Despite issuing the IFRS-Converged Standards in February 2011, Indian Regulators did not implement the new standard on April 1, 2011. The delay can be attributed to concerns over a lack of resolution on taxation issues. The missed target date for convergence, has left many people wondering when India will begin to converge. It has been suggested that the date for mandatory convergence could be pushed back to April 1, 2012. However, because changes to IFRS would be implemented in 2013, it could make the switch to IFRS in 2012 a costly waste of energy and resources. In addition, India's proposed Direct Tax Code, that is due in 2012, does not reference the IFRS.