JAYACHITRA, S (2018) THE FUTURE OF IFRS IN INDIA. ZENITH International Journal of Business Economics & Management Research, 8 (2). pp. 81-99. ISSN 2249- 8826

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IFRS is used in many parts of the world, including the European Union, Hong Kong,
Australia, Malaysia, Pakistan, GCC countries, Russia, South Africa, Singapore and Turkey.
As in December 2011 more than 110 countries around the world, including all of Europe,
currently require or permit IFRS reporting. Approximately 85 of those countries require IFRS
reporting for all domestic listed companies. In subsequent years, many other countries either
adopted IFRS or converged to IFRS. An upcoming economy on world economic map, India,
too, decided to converge to IFRS. IFRS convergence, in recent years, has gained momentum
all over the world. As the capital markets become increasingly global in nature, more and
more investors see the need for a common set of accounting standards. India being one of the
key global players, migration to IFRS will enable Indian entities to have access to
international capital markets without having to go though the cumbersome conversion and
filing process. It will lower the cost of raising funds, reduce accountant‟s fees and enable
faster access to all major capital markets. Furthermore, it will facilitate companies to set
targets and milestones based on a global business environment rather than an inward
perspective. Furthermore, convergence to IFRS by various group entities, will enable
management to bring all components of the group into a single financial reporting platform.
This ill eliminate the need for multiple reports and significant adjustment for preparing
consolidated financial statements or filing financial statements in different stock exchanges.
Historically, each country developed its own Generally Accepted Accounting Principles
(GAAP) for financial accounting and reporting and there was no uniformity among the
GAAPs of different countries. Comparison of financial statements issued by business firms
from different countries has become difficult leading toward suboptimal capital allocation
across countries in the world. Gradually, there emerged a global demand for convergence of
GAAP of different countries into a single set uniform accounting standards applicable to all
countries. As a result, the International Accounting Standards Committee (IASC) was
established in 1973. The IASC formed International Accounting Standards Board (IASB) in
2001 which began issuing International Financial Accounting Standards (IFRS). This paper
presents details of each of these suggested alternatives and future perspective of the
convergence and adoption of IFRS into the Indian accounting and reporting system.

Item Type: Article
Uncontrolled Keywords: GAAP; IFRS; International Accounting Standards Board; Convergence; Adoption in India.
Divisions: PSG College of Arts and Science > Department of Commerce
Depositing User: Mr Team Mosys
Date Deposited: 01 Aug 2022 09:19
Last Modified: 01 Aug 2022 09:19
URI: http://ir.psgcas.ac.in/id/eprint/1385

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