Convergence to IFRS: A Comparative Analysis of Accounting Standards in India.

International Journal Accounting, Auditing and Performance Evaluation, Forthcoming

Posted: 9 Jun 2020

See all articles by Vincent Tawiah

Vincent Tawiah

Griffith University; University of Mysore - Department of Commerce; University of Cape Coast; Dublin City University Business School

Date Written: May 14, 2020

Abstract

This study has employed summative content analysis to measure de-jure harmonisation between the Indian converged IFRS (Ind.AS) and IFRS under the headings Definition Terms (DT), Measurement and Recognition (M/R), and Presentation and Disclosures (P/D). The study has also introduced the convergence index, which was used to investigate differences that the convergences process has removed between the existing GAAP (AS) and IFRS.

There are significant differences between Ind.AS and IFRS in Measurement/Recognition and Presentation/Disclosure. The convergence index shows that Ind.AS has removed about 86% of the difference between the existing local GAAP (AS) and IFRS. The most interesting difference between Ind.AS and IFRS is that Ind.AS provides options where IFRS does not, while IFRS also provides options where Ind.AS does not.

Users of financial statements should understand that, although India has converged to IFRS, there are significant differences between Measurement/Recognition and Presentation/Disclosure of some major transactions. However, most of the differences between IFRS and Ind.AS are time and transaction-specific likely to be undertaken by large companies; hence, it may not reflect in financial statements of small and medium enterprises.

The study makes a methodological contribution by introducing a convergence index which measures how a country has bridge the gap between local GAAP and IFRS

Keywords: IFRS, Ind. AS, Convergence, Adoption, India

Suggested Citation

Tawiah, Vincent, Convergence to IFRS: A Comparative Analysis of Accounting Standards in India. (May 14, 2020). International Journal Accounting, Auditing and Performance Evaluation, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3600759

Vincent Tawiah (Contact Author)

Griffith University ( email )

PMB 50
Gold Coast Queensland 9726
Australia

University of Mysore - Department of Commerce ( email )

Mysore
India

University of Cape Coast ( email )

PMB, UCC, GHANA
Department of English
Cape Coast, Central Region
Ghana

HOME PAGE: http://ucc.edu.gh

Dublin City University Business School ( email )

Dublin 9
Ireland

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