Published Online:April 2025
Product Name:The IUP Journal of Corporate Governance
Product Type:Article
Product Code:IJCG040425
DOI:10.71329/IUPJCG/2025.24.2.64-79
Author Name:S Chandra Sekhar, Dev Kumar Mandal, Chinhita Sanyal and Muddangala Naresh Babu
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:64-79
The paper explores whether adoption of International Financial Reporting Standards (IFRS) affects the comparability and transparency of financial statements of India’s leading automobile firm Maruti Suzuki. It looks into the impact that IFRS has on the actual practice of financial disclosure and the ability of investors and others to compare the financial statements of automobile firms. The empirical study uses Altman Z-Score model to measure the impact of adoption of IFRS. It compares the performance of the company during two periods: pre-IFRS adoption (2016-19) and post-IFRS adoption (2020-23). The findings demonstrate that the profitability of the company went down after the adoption of IFRS. It displays the real, true, and fair value position of the company as far as profit is concerned. The study shows that IFRS adoption has improved financial disclosure quality, and underscores the need for adopting IFRS to enhance financial equity, transparency, and comparability.
The international financial reporting scene has greatly changed since the introduction of International Financial Reporting Standards (IFRS). As global financial markets evolved, they were in need of a single, universal accounting system.