Questionnaire. Instruction for filling the questionnaire: Please put cross mark (use X) adjacent to your choice

Transcription

1 ANNEXURE II Questionnaire Instruction for filling the questionnaire: Please put cross mark (use X) adjacent to your choice ) Demographic profile Name (optional) Membership No. Gender Age (in Years) Employment Area of Specialization Experience Male Female Self practices Employed in audit firm Employed in industry Accounts Audit Taxation Others (Please Specify) Above 2) Please rank the following Major Reasons for being positive in applying IFRS ( for most preferred & 6 for least preferred) Sr. No Major Reasons Ranks Transparency 2 Comparability 3 Investment opportunity 4 Mandatory application of it Better corporate governance 6 Existence of uniform accounting system 3) Please rank the following Major Reasons for being negative in applying IFRS ( for most preferred & for least preferred) Sr. No Major Reasons Ranks High cost of adoption 2 Lack of knowledge 3 Human psychology (resistance to adopt new things) 4 Lack of training Broad changes in accounting world

2 4) Knowledge Evaluation - please choose the field that best suits to you: Sr. No. Statements Very little Little Mediocre Much Very much Do you have general accounting knowledge? 2 Do you have software accounting knowledge? 3 How informed are you in relation to IFRS? 4 Are you aware of the Pros/Cons of applying IFRS? Do you believe that you will meet barriers during the applications of IFRS? 6 Do you consider that the cost of applying IFRS exceeds entities' abilities? 7 Do you believe that different standards should be adopted, adaptable to users' need? Do you think auditors, accountants and accounting students are ready for the convergence to IFRS? 9 Do you believe that existing accounting software are compatible with IFRS? ) To which extent you agree with following statements that convergence with IFRS brings benefits to Companies/Industries: (SA-Strongly Agree, A- Agree, UD- Undecided, DA- Disagree, SDA- Strongly Disagree Sr. No. Statements SA A UD DA SDA 2 3 IFRS would simplify the process of preparing the individual and group financial statements It will improve analysis of information for decision Making Accuracy & reliability of accounting information will be enhanced 4 Better inter- company comparison of financial statements Accuracy & reliability of reported earning and financial position improved 6 Merger/Acquisition became easy 7 IFRS brings better corporate governance Better access to capital market (including foreign investors) 9 It will reduce cost of capital 0 Ease of using one consistent reporting standard in subsidiaries from different countries It will make internal audit easier and less costly 2 Harmonize internal and external reporting by creating a single accounting language 3 It will facilitate better business risk management 9

3 6) To which extent you agree with following statements that convergence with IFRS brings benefits to Investors : Sr. No. Statements SA A UD DA SDA Better information for decision making 2 More confidence in information presented 3 Better understanding of risk and return 4 Investors can compare a peer group of companies financial statements More timely financial report 6 Save time in analyzing financial reports 7) To which extent you agree with following statements that convergence with IFRS brings benefits for National Regulatory Bodies: Sr. No. Statements SA A UD DA SDA More affecting regulatory oversight and enforcement of higher standards of financial disclosures 2 IFRS will made early warning signals of corporate frauds 3 Capital market regulatory will be easier 4 IFRS will result in improving income (taxes) exchange rate ) To which extent you agree with following key success factors for IFRS adoption: Sr. No. Key Success Factors SA A UD DA SDA 2 Implementation of IFRS would reduce information asymmetry and would subsequently smooth the communication between managers, shareholders, lenders and other interested parties Indian corporate sectors have Sufficient fund for convergence with IFRS 3 Executive and board support to convergence with IFRS 4 Professional support with IFRS experience India have sound system of corporate governance 6 Self enforcement by companies 7 IFRS cover both qualitative and quantitative aspects of accounting IFRS will help the accountants and auditors to prevent frauds done by companies accountant 9 IFRS presents opportunities for small and medium size firm to grow 90

4 9) To which extent you agree with following general statements regarding IFRS adoption: Sr. No. General Statements SA A UD DA SDA It is necessary for CA to qualify CISA or equivalent ISA course for convergence with IFRS A country is more likely to implement IFRS if other countries in its geographical region are IFRS adopters The perceived difficulties, costs and benefits of differ across company size or nature of industry The journey to IFRS need to meticulously planning and carefully execution IFRS benefits the accounting professionals to sell their services as experts in different part of the world Convergence with IFRS eliminate the requirement for dual set of financial statements and thereby reduces the cost of raising funds by companies The culture of each country impact on accounting and IFRS Harmonization Smooth functioning of IFRS to a large extent depend upon university curriculum and coordination with professionals 0) To which extent you agree with following challenges in convergence with IFRS: Sr. No. Challenges SA A UD DA SDA IFRS requires immediate change in Indian company laws or regulations 2 IFRS requires immediate change in Indian tax accounting policies and practices 3 IFRS requires immediate change in Indian SEBI regulations 4 IFRS requires immediate change in Indian IRDA regulations Inadequate training facilities at an affordable cost is a roadblock to IFRS 6 Insufficient preparatory period is causing difficulty in convergence with IFRS 7 Fair value measurement being highly subjective obstructs in execution of IFRS IFRS based financial statements will not provide a fair picture of financial position of companies in countries suffering from hyper-inflation 9 IFRS implementation is likely to increase tax burden on companies 0 Work and burden of an accountant/auditors will be increased due to implementation of IFRS IFRS has increased complexities in preparing financial statements thereby increased the risk of errors and omissions 2 Retention of key employees due to convergence with IFRS 3 First time adoption will impair the quality of first financial statements and will also affect the quality of the financial statements 4 Corporate India and accounting professionals need to be trained for effective migration to IFRS Auditors would need to trained their staff to audit under IFRS environment 6 Companies need to communicate the impact of IFRS convergence to their investors to ensure they understand the shift from Indian GAAP to IFRS 7 IFRS require restructuring of ESOP schemes 9

5 ) To which extent you agree with following statements on fundamentals in convergence with IFRS: Sr. No. Fundamental Statements SA A UD DA SDA In IFRS mode, de-recognisation of financial asset is a complex process, multi -layered and in the Indian context this will impact the securitization activity 2 The current value of the net worth is hard to find out in the IFRS mode 3 When many of the financial products do not have an active market, inputs for estimation of fair value may not be that much reliable. 4 In accordance with IFRS 2, the effect of share based payment transactions on the entity s profit & loss account for the period and on its financial position presents true and fair view As per IFRS 3, pooling of interest method is banned is a right decision and it will present the true and fair view of financial statements 6 In accordance with IFRS, there is no need of presentation of discontinued operation in the separate income statement while it was necessary under Indian GAAP, how far you agree with this decision 7 IFRS prescribes certain additional disclosure requirement regarding enterprise s share of profit or loss of associates and joint venture and regarding restatement of prior years information etc. which are not covered in AS 7, This additional disclosure presents true and fair view of financial statements In case of IFRS no valuation allowance is required to be given as the assets are valued at fair value, which is determined after considering any valuation allowance is a right way of treatment 9 Disclosure relating to any impairment losses or reversals of impairment losses are also required when preparing the companies' opening IFRS balance sheet is a true & fair way 0 Calculation the value of intangible assets is very cumbersome process under IFRS Managerial remuneration will be adversely affected due to transition to IFRS 2 Depreciation under IFRS would add huge volatility in numbers and also make forecasting much more difficult 3 Classification and reporting of non-current assets or disposal groups held for sale in accordance with IFRS gives true and fair view 4 Cost of equity or cost of capital will be influenced by the adoption of IFRS. IFRS will change the number of segment and increased segment present true & fair view 6 IFRS will improve consistency between internal and external financial information 7 IFRS results in a better cost benefits ratio Prohibition of LIFO as a measurement basis for inventory under IFRS is a right decision 9 The fair value of share option measured in accordance with IFRS 2 when there is no market price available presents true and fair view 20 Business combination accounted by applying purchase method and reported in accordance with IFRS 3 presents true and fair view 2 The allocation of the cost of business combination to the assets, liabilities and contingent liabilities in accordance with IFRS 3 presents true and fair view 22 When there is no market price available for the purchased intangible assets, then use of the fair value in accordance with IFRS 3 presents true and fair view 92

6 2) Effective transition of all Indian companies to IFRS requires followings steps (please rank for most preferred and 6 for least preferred ) Sr. No. Requirements Ranks IFRS training for investors 2 IFRS training for management 3 IFRS training for auditors 4 IFRS education in the accounting curriculum IFRS training for accountants 6 Accounting training for CFOs 3) What according to you is the single most important reason for which India should switch from Indian GAAP to IFRS? 4) What according to you is the single most important reason for which India should not switch from Indian GAAP to IFRS? ) Please provide below any additional observations or comments with respect to convergence with IFRS: Thank you so much for sharing your valuable information and for giving your precious time to me. 93