RBI Expecting only First cut Reporting from Banks, says ED, RBI
The Reserve Bank of India (RBI) is expecting a rough, first cut reporting from banks vis-à-vis proforma Ind AS (Indian Accounting Standards) financial statements for the half year ending September by November 30 to ascertain the difficulties and problems faced by banks as part of transition to International Financial Reporting Standards from April 2018, a top RBI official said at an ASSOCHAM event.
“I know it will be very difficult to expect any kind of accuracy in that reporting, what I am hoping is it will throw up difficulties, problems which we will work on,” said Sudarshan Sen, executive director (ED), RBI while inaugurating an ASSOCHAM seminar on ‘Ind AS — Issues & challenges in implementation.’
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“We are not going to hold a sword to the banks and say that this reporting has to be absolutely perfect, on the contrary it will be a discovery and learning for us and banks which is why we have asked for this proforma reporting from September half year onwards,” said Sen.
He also said that capacity building both in terms of human as well as IT (information technology) resources is the need of the hour for banks to follow Ind AS converged with International Financial Reporting Standards (IFRS) from April 2018. “It is imperative for the human resources in banks to meet the challenges of implementing Indian Accounting Standards (Ind AS), another very big area is that huge modifications will be required to the IT systems,” said Sen.