Corporate professionals gearing up for new accounting standards

Kolkata: Corporate professionals, particularly those involved in the fields of accounting, auditing, and tax, are gearing up for a new financial reporting regime, which will be rolled out in 2024, experts said on Saturday.

Speaking at the Annual Conference 2022 of the Association of Corporate Advisers & Executives, a senior ICAI member M P Vijay Kumar said changes proposed in the new financial reporting system are to help investors and creditors.

“A fresh Indian Accounting Standard (Ind AS) presentation will be in place…In the new format, ‘operating profit’, instead of earnings before interest, taxes, depreciation, and amortisation (EBIDTA) would get prominence,” he said.

The management commentary will also see some changes, he said.

“All these changes are being introduced to help investors and creditors to arrive at a ‘predictive value’ of assets and liabilities,” the accounting expert claimed.

Speaking at the event, another expert Manoj Fadnis said attempts were being made for integration of tax and financial audits.

For multinational companies, computation of GST and the recent government circular on server location in India created some problems, which are being sorted out through discussions, he said.

Digitisation of information had already influenced insolvency and bankruptcy processes in the country, another corporate professional said.