INDIAN ACCOUNTING STANDARDS AND THE TRANSITION TO IFRS

DR. TAWFIQ ABU-RAQABEH, Dr. BEVERLEY ALLEYNE

Abstract


The purpose of the paper is to evaluate the benefits of convergence of Indian Accounting Standards with International Financial Reporting Standards.  The scope of this paper is to (1) evaluate and summarize the major differences between the International standards and Indian’s standards and comparison of the differences, and (2) to determine if those differences are significant enough to conclude whether India as a country would benefit or be negatively impacted by the implementation of them.  The research methodology is based on secondary data found in journals, periodicals, magazines, books, and websites. The Findings show that convergence of Indian standards with IFRs has both positive and negative benefits, but the positive benefits are greater than the negatives.

The Conclusion and Recommendations of this research are that despite social, cultural, and political barriers that exist, India would benefit financially and economically from implementing international reporting standards.  Recommendations for further study include (1) determining the effectiveness of India’s implementation of the standards, and (2) evaluate the importance of implementing the international standards, and the benefits to experience by allowing proper comparison of financial statements with other entities.


Keywords


IFRS, IAS, ICAI, GAAP, IASB

Full Text:

PDF

References


- Babaloo, R. (2012). Disclosure of Accounting Policies: an Indian Perspective Indian Streams Research Journal, 2(10), p. 1-8.

- Benson, S. H. (July, 1976) “The Story of International Accounting Standards.''

Accountancy,

- Financial Accounting Standards Board. (2006). The IASC-U.S. Comparison Project: A

Report on the Similarities and Differences Between IASC Standards and U.S.

GAAP. FASB.

- Kieso, D., Weygandt, J., Warfield, T. (2016) Intermediate Accounting, 16th edition, Wiley

Publishing, USA, p.20.

–“ KPMG India Launches IFRS Institute (to help various stakeholders in the planned

Convergence from Indian Generally Accepted Accounting Principles to IFRS).” (2009)

Indian Business Insight

- Most, K.S. (1993) the Future of the Accounting Profession - A Global Perspective.

Westport, CT: Quorum Books.

- Nolke, A., & Perry, J. (2007, December). The Power of Transnational Private Governance:

Financialization and the IASB. Business & Politics, 9(3), 1-25, from Business Source Complete

database.

- Patange, H. S. (2012). Prospects and challenges of International Financial Reporting

Standards in Indian Context. Indian Streams Research Journal, 2(2), 1-4.

- Perumprai, S.;Evans, M.;Agarwal, S.;Amenkhienan,F.(2009). The Evolution of Indian

Accounting Standards: Its History and Current Status with Regard to International

Financial Reporting Standards. Advances in Accounting, 25(1), 106-111.

- Prashanta, A.,Rajyalaxmi, N. (2013). Accounting Standards in India: Adoption of IFRS.

Journal of Commerce & Accounting Research, 2(2), 39-45.

- Raghunatha, T.’ Rajashekar, H (2014). Indian Accounting Standards vs International

Financial Reporting Standards. SCMS Journal of Indian Management, 11.3, p. 96-104.

-Roberts, C, Weetman, P, and Gordon, P. (2005) International Financial Reporting: A

Comparative Approach, 3rd edition, FT Prentice Hall, USA. Pp. 218-223.

-Srivastava, A., & Bhutani, P. (2012). IFRS in India: Challenges and Opportunities. IUP

Journal Of Accounting Research & Audit Practices, 11(2), 6-32.


Refbacks

  • There are currently no refbacks.

Comments on this article

View all comments




Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright © 2017 INTERNATIONAL EDUCATION AND RESEARCH JOURNAL