IFRS:– In An Indian Context

PROF. (DR.) BALDEV M. PATEL

Volume : VI, Issue : V, May - 2016

IFRS:– In An Indian Context

Prof. Dr. Baldev M. Patel

Abstract :

Accounting is shaped by economic and political forces it follows that increased worldwide integrators of both markets and politics , But most market and political forces will remain local for the foreseeable future, so it is unclear how much convergence in actual financial reporting practice will( or should) occur. This paper addresses the adoption and applicability of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), issued by the International Accounting Standard Board (IASB) to India specifically; the paper highlights some major areas where the country lacked harmonization with IAS. However, continued growth and the attraction of foreign capital to domestic ventures will depend on the transparency of the financial dealings. The Institute of the Chartered Accountant of India (ICAI), India’s standard setting body, is increasingly attempting to provide this transparency by revisions and additions to accounting standards and by exposure drafts which aim to ing India more in line with International Financial Reporting Standards. The pros and cons of IFRS are therefore somewhat conjectural, unidled enthusiasm of allegedly altruistic proponents notwithstanding. On the “pro” side of the ledger, we conclude that extraordinary success has been achieved in developing a comprehensive set of high quality IFRS standards.