<P> The Institute of Chartered Accountants of India (ICAI) has announced that IFRS will be mandatory in India for financial statements for the periods beginning on or after 1 April 2016 in a phased manner . There is a roadmap issued by MCA for adoption of IFRS . </P> <P> Reserve Bank of India has stated that financial statements of banks need to be IFRS - compliant for periods beginning on or after 1 April 2011 . </P> <P> The ICAI has also stated that IFRS will be applied to companies above INR 1000 crore (INR 10 billion) from April 2011 . Phase wise applicability details for different companies in India: </P> <P> Phase 1: Opening balance sheet as of 1 April 2011 * i . Companies which are part of NSE Index--Nifty 50 ii . Companies which are part of BSE Index--Sensex 30 </P>

Why is it important for the income statement to comply with ifrs