Deliberating Upon the IFRS Norms and Compliance Issues in Developing Countries Like India

Authors

  • Anureet Sahi AIMA
  • Sudhanshu Verma Professor

Keywords:

accounting standards, economic impact, financial impact, IFRS, Ind AS

Abstract

The harmonization of accounting standards is a fast-growing international trend with International Financial Reporting Standards (IFRS) as the front runner having broad-based acceptance. The paper seeks to summarize the findings of various studies regarding the adoption of IFRS by developing countries. It deliberates the reasons for IFRS adoption by these nations, the issues and challenges of the transition, the economic impact of the process, and the recommendations by various authors. The paper examines the existing literature for studies on the ongoing IFRS convergence through Ind AS adoption in India and concludes that there is paucity of studies with specific reference to India. It recommends further case-based studies on Indian corporates for analyzing the impact of IFRS convergence on their performance as well as business perception survey to assess the level of preparedness in the corporate setup for this transition. In view of the ongoing phased mandatory adoption of Ind AS by Indian corporates, the paper attempts value addition by highlighting specific areas of concern for Indian corporates, particularly multinationals listed on foreign stock exchanges. Financial impact on the companies could have broader ramifications for the Indian economy. The paper seeks to identify future research areas that may assist the corporates in risk identification and mitigation strategies for Ind AS transition. This paper is limited in its scope to existing research on the impact of IFRS on developing countries. It has practical implications for researchers, accountants, corporates and policy-makers about IFRS convergence in India.

Additional Files

Published

2018-12-21