Strategies, Benefits and Challeges of Adoption of IFRS in India

International Journal of Accounting and Financial Management Research (IJAFMR), Forthcoming

10 Pages Posted: 7 Feb 2015

See all articles by Dr. S K Misra

Dr. S K Misra

Dr B R Ambedkar National Insitute of Technology; Punjab Technical University

Vimal Aggarwal

Gian Jyoti Institute of Management & Technology

Date Written: December 1, 2014

Abstract

A set of rich value and quality accounting standards related to financial reporting are required worldwide in order to operate businesses successfully. Over the past three decades accounting bodies and professional has been contributing to the worldwide efforts with an objective to promoting uniform and harmonized financial reporting system. The globalization have necessitated for a corporate sector to have a uniform, single and universally acceptable system of financial reporting. In 2001, International Financial Reporting Standards were developed with the contributions of International Accounting Standard Board with a view to facilitate a particular set of rich quality and understandable standards for financial reporting. The inaugural of economic reforms and globalization in the late 1980s led the process of changes in financial reporting methods in India. So Indian government also determined to converge its local accounting standards to IFRS. In 2006, ICAI constituted a task force with an objective to propose a blue prints for convergence process in India. This paper is an attempt to discuss the Indian scenario in context to roadmap of IFRS adoption, efficacy of adoption, complications in this convergence process. To conclude, paper suggests ways to address these obstacles.

Keywords: International Financial Reporting Standards (IFRS), Institute of Chartered Accountants of India (ICAI) and International Accounting Standards Board (IASB).

JEL Classification: M41, G38

Suggested Citation

Misra, Sushendra Kumar and Aggarwal, Vimal, Strategies, Benefits and Challeges of Adoption of IFRS in India (December 1, 2014). International Journal of Accounting and Financial Management Research (IJAFMR), Forthcoming, Available at SSRN: https://ssrn.com/abstract=2560912

Sushendra Kumar Misra (Contact Author)

Dr B R Ambedkar National Insitute of Technology ( email )

NH 1
Jalandhar, 144011
India
9478098010 (Phone)

HOME PAGE: http://www.nitj.ac.in

Punjab Technical University ( email )

Jalandhar-Kapurthal Road
Kapurthala, 146001
India
919478098010 (Phone)
911822662530 (Fax)

HOME PAGE: http://ptuaccounts.ac.in

Vimal Aggarwal

Gian Jyoti Institute of Management & Technology ( email )

Phase - II
Mohali, Punjab
India

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