IUP Publications Online
Home About IUP Magazines Journals Books Archives
     
Recommend    |    Subscriber Services    |    Feedback    |     Subscribe Online
 
The IUP Journal of Accounting Research and Audit Practices:
IFRS in India: Financial Implications in Select Companies
:
:
:
:
:
:
:
:
:
 
 
 
 
 
 
 

International Financial Reporting Standards (IFRS) set by the International Accounting Standards Board (IASB) are adopted by the companies for the preparation of the financial statements. This ensures easy understanding and facilitates comparability of the financial statements of different enterprises of different countries and provides relevant and meaningful information to the various users of the financial statements. In India, the new set of standards which have been converged with IFRS is known as Indian Accounting Standards or Ind AS and will be implemented in India in a phased out manner (Phase 1, 2 and 3) as have been notified by the Ministry of Corporate Affairs on February 25, 2011. The recent announcement made by the Finance Minister in the year 2015 made it mandatory for all the listed companies either to adopt IFRS or converge with effect from the accounting year 2016-17. IFRS is recommended for adoption with several benefits in mind and some of the companies have already adopted new standards and have started reporting accordingly. In this context, the present paper presents an overview of double adoption of IFRS globally by the significant trade forums and the Indian companies which are voluntarily adopting IFRS. It also analyzes the financial implications of adoption of IFRS by the select companies in India. The study is based on secondary data, and Gray comparability index, t-test and F-test are employed for analyzing the data.

 
 
 

Financial statements are prepared in monetary terms by an enterprise to summarize the end-result of all the business activities during an accounting period. These business activities vary from one enterprise to another. The divergence in the methods and principles adopted by the enterprises in preparing their financial statements will pose difficulties if the financial statements of various reporting enterprises are to be compared. Therefore, standards are evolved, to make these methods and principles uniform and comparable, to the extent possible. Accounting standards are the statements of code of practice, of the regulatory accounting bodies, that are to be observed in the preparation and presentation of the financial statements. The basic objective of accounting standards is to remove the variations in the treatment of several accounting aspects and to bring about standardization in presentation.

 
 
 

International Financial Reporting Standards (IFRS), International Accounting Standards Board (IASB), Preparation of the financial statements.