The need for a core group for Indian Accounting Standards was brought out by Shri D. K. Sarraf, Director (Finance), ONGC while inaugurating a workshop organised by PetroFed in association with member company KPMG on July 13, 2011 at New Delhi.

The workshop addressed two crucial issues – ‘Revised Schedule VI to the Companies Act, 1956’ and the ‘Revised Exposure Draft on Guidance Note on Accounting for Oil & Gas Producing Activities’.

Shri Nabin Ballodia, Executive Director, KPMG in his theme address stressed on the significance of the subjects since India has committed to convergence with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).  He echoed Shri Sarraf’s comment that the workshop was very timely since the revised Schedule VI, which governs the form and contents of the financial statements of a company is effective from the financial year beginning April 1, 2011. 

Earlier Shri A. K. Arora, Director General, PetroFed pointed out in his welcome address that over 100 countries currently require or permit use of IFRS and that a non-IFRS compliant country is perceived as an additional risk factor for international investments.  PetroFed, he added, had sent recommendations to ICAI on the Guidance Note in 2005 which were supplemented in 2006.  Recommendations had also been made on the revised Exposure Draft in 2009 after the earlier comments in 2006.

Both subjects, were thereafter dealt with comprehensively by Shri Kaushal Kishore, Partner, BSR & Co. and Shri Ashish Bansal, Senior Manager, BSR & Co.  Advantage was taken of the presence of Shri Sandip Khetan, Director, Accounting Advisory Services, KPMG, who gave a presentation on eXtensible Business Reporting Language (XBRL) which is a computer language that, through a process of tagging, makes documents machine - readable.  The system improves the manner in which financial statements are shared and analysed. 

While the first session dealing with the ‘Revised Schedule VI to the Companies Act, 1956’ was chaired by Shri D. K. Sarraf, Director (Finance), ONGC the second session dealing with ‘Revised Exposure Draft on Guidance Note on Accounting for Oil & Gas Producing Activities’ was chaired by Shri S. Dhandapani, Executive Director and Chief Internal Audit, ONGC.              Shri Dhandapani gave a detailed presentation on the unique features of oil & gas accounting and the difficulties being faced under Indian Accounting Standards and IFRS compliance.

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