Volume : III, Issue : II, February - 2013

Harmonization in Indian Accounting System

Fayza Z.

Abstract :

Purpose – The purpose of this paper is to examine the recent accounting regulations designed to facilitate international harmonization in India and to show how India developed an accounting system that harmonizes with international standards while preserving macroeconomic control. Design/methodology/approach – This paper is developed using the theoretical framework on globalization. Findings – The recent development of accounting aims to implement India’s commitment to harmonize its accounting system with the world. This process has faced some difficulties due to national particularities such as India’s economic system and accounting tradition. This paper shows that the regulators have been careful in their approach to develop and find ways to combine or adapt when pushing for accounting development: a co–existence of India accounting standards and a uniform accounting system. Research limitations/implications – The different approach to developing accounting regulation in India reflects the key role of the State in preserving governmental control while harmonizing with international standards. Practical implications – This paper studies the influence of globalization on accounting development in India. It suggests that developing accounting practices in a country in harmony with international standards faces obstacles previously evidenced in the literature, such as economic system and accounting tradition. The study also provides insight into problems encountered by regulators who are incorporating international accounting standards into national accounting regulations. These problems suggest that international accounting standard setters and accounting regulators may face issues similar to those in India. Originality/value – This paper contributes to the literature on international accounting harmonization by illustrating the need for considering national particularities as factors that will affect the rate of harmonization with international accounting standards.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Fayza Z. Harmonization in Indian Accounting System Indian Journal of Applied Research, Vol.III, Issue.II February 2013


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