In the present times International Financial Reporting Standards (IFRS) has gained momentum due to globalization and liberalization. Multinational companies are setting up businesses in emerging markets and entities in emerging economies are accessing global financial markets to fund their expansions and acquisitions internationally. The firsttime adoption of IFRS impacts the financial statements of entities due to differences between local Generally Accepted Accounting Principles (GAAP) and IFRS. The impact of IFRS is perceived to be high for banks due to complexities in IAS 39: Recognition and Measurement of Financial Instruments and Hedge Accounting. This paper discusses the conceptual IFRS adoption process for Indian banks for effective implementation of IFRS.

The accounting information should provide accurate depiction of the economic reality of the entity, low scope for managerial manipulation, timely recording of value added in the financial statements and timely information for users of the financial statement to take economic decisions (Ball, 2006).

Increased globalization and integration of financial markets around the world has made it imperative to harmonize accounting standards across the globe. The objective of International Accounting Standard Board (IASB) is to develop high quality, understandable and globally acceptable accounting standards known as International Financial Reporting Standards (IFRS).

IFRS is believed to provide transparency to the financial statements and improve comparability of financial statements across the countries. Single set of high quality standards reduces the cost of analyzing the financial statements for investors and eliminates dual reporting for entities listed in foreign countries. The comparability of financial statements would improve by adopting IFRS.

Accounting Research and Audit Practices, International Financial Reporting Standards (IFRS), Generally Accepted Accounting Principles (GAAP), International Accounting Standard Board (IASB), International Financial Reporting Standards (IFRS), Explanatory Process, Adoption of IFRS, Indian Banks, .