India to adopt IFRS in 2013

India, one of the world's largest and fastest growing economies, is set to implement International Financial Reporting Standards effective April 1, 2013, according to The Hindu Business Line.

The announcement was made by Corporate Affairs Minister Veerappa Moily at an event on August 9, The Indian Express reported. Confusion over tax issues has delayed implementation of IFRS, which was at one point scheduled to take place in 2011. The issue, which revolved around the concept of "fair value taxation," has divided the Corporate Affairs Ministry and the Finance Ministry. A new direct taxation scheme also slated for April 1 is expected to resolve the disagreement, according to the Business Line.

To date, more than 100 countries have adopted IFRS standards, with the United States being a notable exception. U.S. reluctance to adopt the rules was another issue preventing India from moving over to the standards, but IFRS adoption has already taken place in countries like Canada, Russia and Brazil, staunching some of the fears of the Indian business elite.

“We have hastened the pace of reform process to effectively address the current challenges faced by the domestic corporate sector," the Express quoted Moily as saying.