Explain the convergence of Indian Accounting Standards (IAS) with International Financial Reporting Standards (IFRS).

International Financial Reporting Standards are now becoming universal reporting language. In tune with the global trend the Government of India decided to facilitate the convergence of the Indian Accounting Standards with IFRS. In this direction all the existing Indian Accounting Standards were revised and converged with corresponding International Accounting Standards/ International Financial Reporting Standards. These converged Accounting Standards are known as Ind AS. As a result of this there shall be two separate sets of Accounting Standards under the Companies Act. The first set would comprise the Indian Accounting Standards, which are converged with the IFRS and shall be applicable to some specified class of companies. The second set would comprise the existing Indian Accounting Standards and would be applicable to other companies, including Small and Medium Companies (SMC).