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The IUP Journal of Accounting Research and Audit Practices:
The Impact of Transition to Ind AS
on Key Accounting Areas:
An Assessment
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In the scenario of economic and financial globalization where the countries around the world are moving towards adoption of International Financial Reporting Standards (IFRS) as their financial reporting language, India could not cocoon itself from this phenomenon occurring globally. Accordingly, India resolved to converge Indian Accounting Standards with IFRS at the G20 Summit in 2009. Consequentially, a new set of reporting standards known as Ind AS were issued by Accounting Standards Board (ASB) in India. Ind AS or Indian Accounting Standards converged with IFRS have now become the new accounting standards applicable for preparation of financial information by Indian companies. This study discusses how in a phase-wise manner, Ind AS will be implemented and explores the impact of Ind AS transition on selected key accounting areas.

 
 
 

With the emergence of global financial system, the requirement of global standards for the preparation of financial statements of companies has become the need of the hour and International Financial Reporting Standards (IFRS) are an answer to this need. IFRS issued by International Accounting Standards Board (IASB) are the global standards providing a framework for the preparation of financial statements of public companies.

Adopting IFRS or convergence with IFRS has surged in the past few years. More and more countries are either adopting IFRS or are converging their standards with these regulations in terms of both relevant accounting rules as well as governance.

Throughout the world, more than 120 nations and reporting jurisdictions have authorized or mandated using IFRS for the preparation of public company financial statements. The Institute of Chartered Accountants of India (ICAI), which is the apex organization of accountants in India, has been working for developing high quality Accounting Standards converging with IFRS, i.e., Indian Accounting Standards (Ind AS) and their implementation. It is expected that once Ind AS are implemented, it will cast a material impact on the financial statements of Indian companies as there exists a disparity between Ind AS and Indian Generally Accepted Accounting Principles (IGAAP).

 
 
 

Economic and Financial Globalization ,International Financial Reporting Standards (IFRS),Accounting Standards Board (ASB), Indian Accounting Standards converged.