opportunities and challenges in adopting …...national seminar on “ind-as : a road map for ifrs...

National Seminar on “IND-AS : A Road Map for IFRS in India”

VVPGC March 18 & 19, 2016

ISBN : 978-93-5254-333-5 1

OPPORTUNITIES AND CHALLENGES IN ADOPTING IND-AS

Abhilasha. N

Assistant Professor,

Seshadripuram Degree College,

Mysore.

[email protected]

H.G. Nandeesha

Assistant Professor and Research Scholar,

Government First Grade College,

K.R.Nagar.

[email protected]

Sagar. M

Student,

Seshadripuram Degree College,

Mysore.

Abstract:

IFRS is a single set of accounting language which are global acceptable which offers

comparability, reliability, accuracy etc., which helps global investors to invest globally and also

helps company to enter into global market. The literature review shows that more than 160

countries and over 12,000 companies are implemented IFRS either adoption or convergence in

implementing it for preparation and presentation of financial statements.

In India, the Ministry of Corporate Affairs laid down the roadmap for application of Ind AS

which is convergence form of IFRS. Companies’ rules, 2015 has also notified to implement Ind

AS from 1st April, 2015 either voluntarily or following the 3 phrase released by MCA. The study

aims at knowing the operational challenges in implementing the Ind-AS and to opportunities

that IFRS offers in adopting it in the preparation and presentation of financial statements. The

study identities that regulatory changes, lack of training, lack of knowledge about Ind-AS,

expertise skills etc., are the challenges in implementing and comparability, reliability, global

finance, sign of globalization are the opportunities from Ind-AS. The study attempts to identify

the list of companies which had adopted IFRS and data will be analyzed through statistical

technique. The study is based on secondary data. The study suggest to have early adoption of

Ind-AS has to be made mandatory. Finally, the implementation of Ind-AS is the sign of

globalization and its one of the great revolution in the field accounting.



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Key words: Ministry of Corporate Affairs, Convergence, Adoption, Globalization

INTRODUCTION:

In the globalized market, India emerged as a prominent country in terms of International

business over the last few decades. In the dynamic environment, India had invariably adopted

to many changes to compete at global level. IFRS is a sign of globalization and it is a great

revolution in the accounting field. MCA has made for companies to adopt voluntarily Ind AS for

accounting period beginning from 1st April, 2015. IFRS is a global single set of accounting

standards which are accepted globally. The literature review shows that more than 160

countries and over 12,000 companies are implemented IFRS either adoption or convergence in

implementing it for preparation and presentation of financial statements. ICAI has played its

role in making IFRS climate in India adoptable, reliable and understandable. It is now necessary

to understand key success factors and key opportunities to adopt Ind AS in Indian economy.

This paper examines the perception of two categories of sample respondents to identify the

success and challenges involved in implementing IFRS.

STATEMENT OF THE PROBLEM

There is a saying that “a well-defined problem is half solution for the problem”. The

opportunities and challenges are the two faces of a coin each and every aspect has its own pros

and cons, the best way of managing the problem is, “in order to get the maximum benefits we

have to find and minimizes the challenges”. In order to know the key success factors and key

challenges involved in implementing IND-AS, the proper understanding of those challenges is

most important. Thus the study concentrating on identifying the major challenges and

opportunities of IND-AS.

LITERATURE REVIEW

The literature on the IFRS implementation and implication, effect of transition to IFRS,

impact of IFRS adoption on the items of financial statements have been thought provoking and

shed light on the various issues and challenges. Considerably a good number of research studies

thrown light on the various issues with respect to IFRS adoption across the globe. A few among

them are considered very relevant and cited here.

Kannan (2003) conducted a study regarding international standards with respect to banking

operations and importance of corporate financial reporting in corporate governance and

documentation of the changes occurred in corporate reporting practices. He has given

justifiable suggestions for their gradual introduction in the Indian Banking sector.

Dangwal and Singh (2005) in his study observed some interesting issues with regard to the

financial reporting of banking companies in India and finds that the quality of financial reporting



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enables the banks to capitalize their underlying strengths, disclosure practices and social

viability.

Chand & White (2007) studied the convergence of Domestic Accounting Standards and IFRS

and also exhibits that influence of Multinational Enterprises and large international accounting

firms can lead to transfer of economic resources in their favor, wherein the public interests are

usually ignored.

Goncharov and Zimmermann (2007) find that the level of earnings management for firms that

report their results under US GAAP is significantly lower, while the level of earnings

management under German GAAP and IAS is roughly equal. Based on the evidence, they

concluded that the different accounting choices embedded in different accounting standards

influence the level of earning management.

Barth et al (2008) undertook a study of financial data in 21 countries and examined whether

application of IAS/IFRS is associated with higher accounting quality and the findings of the study

confirmed that firms applying IAS/IFRS evidence less earnings management, more timely loss

recognition and more relevance of accounting numbers. The study also found that the firms

applying IAS/IFRS experienced an improvement in accounting quality between the pre-adoption

and post adoption.

Epstein (2009) studied Economic effects of IFRS adoption by emphasizing on the fact that

universal financial reporting standards will increase market liquidity, decreases transaction

costs for investors, lower cost of capital and facilitate international capital flows.

Alfred Wagenhofer (2009) analyzed the challenges that arise from political influences and from

the pressure to sustain a successful path in the development of standards. It considers two

strategies for future growth which the International Accounting Standards Board (IASB) follows

the work on fundamental issues and diversification to private entities.

Dennis W. Taylor (2009) compared the costs to financial statement prepares of making the

transition to International Financial Reporting Standards (IFRSs) relative to the benefits to

financial statement users from receiving “higher quality” IFRS-based information (measured as

incremental value-relevance for listed companies in the UK, Hong Kong and Singapore). These

countries had different approaches to harmonization leading up to IFRS adoption.

Rudy A. Jacob, Christian N. Madu (2009) examined the academic literature on the quality of

International Financial Reporting Standards (IFRS), formerly International Accounting Standards

(IAS), which are poised to be the universal accounting language to be adopted by all companies

regardless of their place of domicile.

Robyn Pilcher, Graeme Dean (2009) determined the impact of financial reporting obligations

and, in particular, the International Financial Reporting Standards (IFRS) have on local

government management decision making. In turn, this will lead to observations and



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conclusions regarding the research question: “Does reporting under the IFRS regime add value

to the management of local government?”

Susana Callao, Cristina Ferrer, Jose I. Jarne, Jose A. Lainez (2009) discovered the quantitative

impact of International Financial Reporting Standards (IFRS) on financial reporting of European

countries and evaluate if this impact is connected with the traditional accounting system in

which each country is classified, either the Anglo-Saxon or the continental-European accounting

system.

Siqi Li (2010) carried out a study on 1084 European Union firms during the period of 1995-2006.

He concludes that on an average, the IFRS mandate significantly reduces the cost of equity for

mandatory adopters and reduction is present only in countries with strong legal enforcement.

He also concludes that increased disclosures and enhanced information comparability are two

mechanisms behind the cost of equity reduction.

Chen et al (2010) carried out a study of financial data of publicly listed companies in 15

member states of European Union before and after the full adoption of IFRS in 2005, thereafter

found that the majority of Accounting Quality indicators improved after IFRS adoption in the EU

and after there is loss of managing earning towards a target, a lower magnitude of absolute

discretionary accruals and higher accruals quality. They also proved that the improved

accounting quality is attributable to IFRS, rather than changes in managerial incentives,

institutional features of capital markets and general business environment.

Paramashivaiah, & Puttaswamy (2014) highlighted various factors that delayed IFRS adoption

in India. They suggested, in their study, that Legal and regulatory frame work to be amended

soon and aggressive academic input and training shall be provided rapidly to overcome the

talent crunch in this new accounting and reporting regime.

OBJECTIVES OF THE STUDY:

1. To study the concept of International Financial Reporting Standards.

2. To analyze the key success factor and key challenging factor involved in implementing IFRS.

3. To offer pertinent suggestions based on the research findings.

Research Methodology

This section describes the methods adopted in this study. It specifies the research

design, the sources of data, and the procedures adopted in data collection and analysis

A. Research Design:

This study is exploratory research in nature. It adopts a quantitative approach in analyzing the

research questions.



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a. Population and Sample:

The population for this study consists of Chartered accountants and academicians in Mysore

district.

b. Sample size: It consists of 100 comprising of chartered accountants, accounting professor,

scholars and students.

c. Sampling method: Judgement non-probability sampling method has been adopted in

administering the questionnaire.

d. Sampling technique: Stratified sampling technique has been employed in which respondents

are classified into 4 strata that is, chartered accountants, academician, scholars and students.

B. Source of data collection: The paper is based on the both primary as well as secondary

data. Primary data has collected by consulting 100 respondents in Mysore district.

Secondary data has collected from various books, article, research papers, reports etc.

C. Techniques for data processing and analysis: To analyze the primary data, SPSS version

16.2 has been used. Descriptive statistics and rotated matric has been used for analyzing

the data.

Theoretical Background:

Meaning of IFRS

The full abbreviation of the term “IFRS” is international financial reporting standard

(IFRS). IFRS has been developed by International accounting standard board (IASB). As per IASB

“IFRS refers to a set of international accounting standard stating how particular type of

transactions and other events should be reported in financial statement” or, in other words

IFRS refers to guidelines and rules that companies and organizations are required to follow in

preparing and presenting their financial statements.

Thus, IFRS are the rules, guidelines, standards set by IASB that companies and

organizations across the world will follow uniformly and transparently in their preparation and

presentations of financial statements. International Financial Reporting Standards (IFRS) is a set

of accounting standards developed by an independent, not-for-profit organization called the

International Accounting Standards Board (IASB).

The goal of IFRS is to provide a global framework for how public companies prepare and

disclose their financial statements. IFRS provides general guidance for the preparation of

financial statements, rather than setting rules for industry-specific reporting. Having an

international standard is especially important for large companies that have subsidiaries in

different countries. Adopting a single set of world-wide standards will simplify accounting



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procedures by allowing a company to use one reporting language throughout. A single standard

will also provide investors and auditors with a cohesive view of finances

3.3 Ways of implementing IFRS

IFRS can be implemented in two ways either by Full Adoption or Convergence. The two

terms though used interchangeably but there is a faint but important difference:

Adoption: It is a process of adopting IFRS as issued by IASB, with or without modifications.

Modifications being, generally in the nature of additional disclosures requirement or

elimination of alternative treatment. It involves an endorsement of IFRS by legislative or

regulatory with minor modifications done by standard setting authority of a country.

Convergence: It is harmonization of national GAAP with IFRS through design and maintenance

of accounting standards in a way that financial statements prepared with national accounting

standards are in compliance with IFRS.

Challenges involved in IFRS implementation in India:

There are number of challenges that India is likely to face with regard to convergence

with IFRS. In face convergence with IFRS is not only just technical exercise but also involves

overall changes in not only the perspective but also the very objective of accounting in the

country. Challenges may be with regard to significant business and regulatory matters like

structuring of ESOP schemes, training of employees, tax planning, modification of IT system,

compliance with debt and investors understanding level of shift from Indian GAAP to IFRS. Lets

discussion some the challenges in the convergence with IFRS:

Fair Value Accounting: The use of fair value accounting can bring volatility and

subjectively to the financial statements. It is very difficult to arrive at the fair value and

valuation experts also feel difficulty to shift from historical method to fair value method.

Moreover, adjustments to fair value results in gains or losses which are reflected in the

income statements. Whether this can be included in computing distributable profit is

also debatable issue.

Amendments to the existing law: Another biggest challenge is with the existing laws

which are observed in the Companies Act 1956, SEBI regulations, banking laws and

regulations and the Insurance laws and regulations. Currently, the reporting

requirements are governed by these regulators in India. Hence, it seems very difficult to

amend these laws to meet the requirement of IFRS convergence.

Taxation: Convergence of IFRS demand changes in existing changes in Tax laws.

Currently, Indian Tax Laws doesn’t recognize the Accounting Standards. A complete

renovation in Tax Laws is the major challenge faced by the Indian Law Makers. It



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involves great changes in the Tax Laws in order to make tax authorities to recognize

IFRS-Compliant financial statements. Ministry of Corporate Affairs of India had formed

committee to identify various legal and regulatory changes required for convergence.

Lack of trained professionals: IFRS implementation requires a professionally trained

human force, but India doesn’t have sufficient number of fully trained professionals to

carry out the process. So, successful implementation of IFRS need to have adequate

number of properly trained Chartered Accountants, Account Preparers, Government

officials, Academicians and professionals for a smooth and effective adoption process.

Training: One of the biggest hurdles in implementing IFRS is that lack of training facilities

and academic courses on IFRS in India. IFRS foundation already offering Online IFRS

programme, diploma and certificate courses and also The Institute of Chartered

Accountants of India (ICAI) has started IFRS Training programmes for its members,

Chartered Accountants and other interested parties. Still, there exists a large gap

between Trained Professionals required and trained professionals available.

Awareness about International Practices: Adoption of IFRS will definitely bring drastic

changes. The users of financial in formations have to look from different perspective as

there is number of difference between IFRS and Indian AS. So, it is very much necessary

to bring awareness about IFRS and their impact on financial statements among different

stakeholders.

Management reporting system: The disclosure and reporting requirements under IFRS

are completely different from Indian reporting requirement. So, every company has to

amend their existing business reporting model to suit the requirement of IFRS. Proper

internal control is requirement while modifying the information system. It may be

relating to fixed assets, segment reporting, related party transactions etc.

Management compensation plan: The rules, terms and conditions relating to

management compensation plans also demands changes because the financial results

arrived under IFRS are very different from those under Indian GAAP. Hence, existing

contracts and agreements have to be re-negotiated which is a biggest challenge for a

company.

5.5 Opportunities in adopting IFRS in India:

Currently, over 160 countries and 12000 companies across the globe have already

adopted and benefited by IFRS adoption. Still India has not yet adopted IFRS and planned to

converge with IFRS by coming 2017 in all the sectors. Some of the opportunities that India can

enjoy are stated below:



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Fair transparency in financial data: IFRS provides a single set of high quality

accounting standards globally, it ensure transparency in financial data. As IFRS is a

single globally accepted accounting standards it will ensure true and fair view of the

financial information to various users.

Better comparability: As different country follows different accounting standards,

investors feel difficulty in comparing the financial statement prepared under

different accounting standard of different countries. Hence, IFRS is the better

remedy for global investors which helps them compare the financial statement of

one country with other.

Develops international linkages: Adoption of IFRS in India definitely develops the

international trade and business. It helps to make cross border acquisitions and joint

venture possible, and also provide access to foreign capital. This is because majority

of stock exchanges require financial information presented according to the IFRS.

Reduces the reporting costs: For an MNCs, IFRS is a boon as they own many

branches across the world they have to prepare a financial statement as per

different countries accounting standards for example; financial statement as per

Indian GAAP, US GAAP if they are operating in India and US. Adoption of IFRS will

reduce the multiple reporting cost as it is a single globally accepted accounting

standards they is no need to prepare multiple financial statement.

Boost the growth of service sector: The implementation of IFRS in the corporate

world demands a professionally trained accountants, auditors, valuers and actuaries.

This will boost the growth of the service sector in India and helps to emerge as an

accounting service hub. As IFRS is global standards, the trained and quality of work

maintained at global level.

Helps to access foreign capital markets: Indian is a growing economy where many

entities expanding their business towards internationalization. Huge amount of

capital are required in this process for which entities have to list their shares in

various stock exchanges around the world. Majority of the stock exchanges permit

IFRS complaint account. Hence, adoption of IFRS will enable Indian entities to access

to international capital markets.

New opportunities for professionals: As India is a country with immense human

resource; it will be boon to accounting professionals like Chartered accountants,

Academicians, Account preparers, accounting students etc., one who possess the

knowledge of IFRS. The convergence process will be highly beneficial for IFRS trained

professional in near future.

Boon for multinational group entities: IFRS are greatly meant and beneficial for

MNCs rather than domestic companies as MNCs owns and operates across the

globe. Entities in India may have a holding, subsidiary or associate company in some



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other nation. Compliance with IFRS for all group entities will enable the company

management to have all the financial statements of the group in one reporting

platform and hence will facilitate the consolidation process.

RESULT AND ANALYSIS:

DEMOGRAPHIC PROFILE

Table No.1

Table showing number of Male and Female Respondents

Table No.6.2.4

Table showing the classification of respondents

Particulars No. of Responses Percentage

CA/CS/ICWA 20 30

Accounting professor 20 20

Research Scholars 20 20

Accounting Students 30 30

Total 100 100

ATTITUDANAL QUESTIONS

a. Percentage analysis

Table No.3

Table showing the Respondents readiness to change in Accounting Practices due to

Convergence with IFRS


Male 64 64

Female 36 36

Total 100 10



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Yes 63 63

No 37 37

Total 100 100

Fig No. 1

Graph showing the Respondents readiness to change in Accounting Practices due to

Convergence with IFRS

Interpretation

The result shows that out of 100 respondents, 58 (58%) respondents are ready for the

changes in Accounting Practices due to Convergence with IFRS and about 42 (42%) respondents

are not ready for change in accounting practiced due to convergence with IFRS.

Table No. 4

Table showing the respondents’ opinion regarding IFRS is more advantageous than

Previous GAAP


Yes 54 54

No 46 46

0

50

100

Yes No

No

. o

f R

esp

on

de

nts

Opinion of the Respondents

Ready for changes in accounting practice



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Total 100 100

Fig No. 2

Graph showing the respondents’ opinion regarding IFRS is more advantageous than

Previous GAAP

Interpretation

The above result shows that out of 100 respondents, 54 (54%) says that they are ready

for the change in accounting practices due to convergence with IFRS and 46 (46%) respondents

say that they are not ready for the change in accounting practices due to convergence with

IFRS.

Table No.5

Table showing the respondents opinion regarding the IFRS adoption must for MNCs than

domestic companies


Yes 97 97

No 03 3

Total 100 100

Fig No.3

Graph showing the respondents opinion regarding the IFRS adoption must for MNCs than

domestic companies

40

60

Yes No

No

. o

f

Re

sp

on

de

nts


IFRS IS MORE ADVANTAGE THAN GAAP



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Interpretation

The above result shows that out of 100 respondents, 97 (97%) respondents says that

IFRS is must for MNCs than domestic companies and 3 (3%) respondents says IFRS is not must

for MNCs than domestic companies.

Table No.6

Table showing the descriptive statistics for key success factors for IFRS Convergence:

Descriptions Mean

Std.

Deviation Analysis N

Reduce information asymmetry & improves

communication 3.47 .521 100

Sufficient fund for convergence 2.65 .845 100

Executive & board support to convergence 3.82 .657 100

Professional support with IFRS experience 4.21 .591 100

Sound system of corporate governance 3.04 .840 100

Self-enforcement by companies 3.90 .659 100

Covers both qualitative & quantitative information 3.77 .649 100

Prevents frauds done by companies accountant 3.51 .595 100

IFRS provides for SMEs 3.90 .644 100

0

100

Yes No

No

. o

f R

esp

on

de

nts


IFRS MUST FOR MNCs



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Table No.7

Table showing the rotated component matrix for Key Success Factors of IFRS Convergence:

Table No. 8

Table showing the Result of Factor Analysis

Sl.

No

Factors

Description

Factor

Values

1 Self-enforcement

with Professional and

Board support

Self-enforcement by companies .699

Professional support with IFRS experience .699

Executive & board support to convergence .546

2

Better corporate

governance

Sound system of corporate governance .724

Covers both qualitative & quantitative data .768

3 Better

communication

Reduce information asymmetry and enhance better

communication with interested parties

.819

Interpretation

The result of Factor Analysis shows that Self enforcement with professional support and

board support, better corporate governance and better communication of financial information

to interested parties is the key success factors in IFRS Convergence.

Descriptions

Component

1 2 3

Reduce information asymmetry & improves communication -.102 .119 .819

Sufficient fund for convergence .409 .207

Executive & board support to convergence .546

Professional support with IFRS experience .611 .140

Sound system of corporate governance .161 .724

Self-enforcement by companies .699

Covers both qualitative & quantitative information -.125 .768

Prevents frauds done by companies accountant .272 .647

IFRS provides for SMEs .479 .392 .226



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Table No.9

Table showing the descriptive statistics for Key Challenges in convergence with IFRS:

Descriptions

Mean

Std.

Deviation

Analysis

N

Immediate change in Indian company law & regulations 4.56 .574 100

Immediate change in Tax accounting policies & practices 4.45 .672 100

Immediate change in SEBI & IRDA regulations 4.49 .611 100

Inadequate training facilities 4.59 .514 100

Fair value measurements 3.46 1.218 100

Insufficient preparatory period 3.79 .868 100

Increase tax burden on companies 3.58 .727 100

Work burden increases for auditors/accountants 3.72 1.016 100

Increased complexities 3.50 .948 100

Corporate India & professionals need at be trained 4.68 .490 100

Auditors need to train their staff 4.76 .429 100

Communicate impact of IFRS 4.28 .533 100

Retention of key companies 3.54 .610 100

Re-negotiation of existing contracts & agreements 4.00 .696 100

Interpretation

The result shows that auditors training (4.76), corporate Indian and professionals

training (4.68), inadequate training facilities (4.59), immediate change in Indian company law

and regulation (4.56), changes in tax policies and practices (4.45), communication of impact of

IFRS (4.28) are the major challenges and fair value measurement (3.46), insufficient preparatory

period (3.79), retention of key employees (3.54) are the general challenges in adopting IFRS.



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Table No.10

Table showing Factor Analysis for Key Challenges in convergence with IFRS:

Descriptions Component

1 2 3 4 5 6

Immediate change in Indian company law & regulations .894

Immediate change in Tax accounting policies &

practices .919

Immediate change in SEBI & IRDA regulations .902 .112

Inadequate training facilities .872 -.117

Fair value measurements -.134 .776

Insufficient preparatory period .122 -.131 .794 .153

Increase tax burden on companies .380 .412 .533

Work burden increases for auditors/accountants -.109 -.103 -.165 .846

Increased complexities .108 .680 .260

Corporate India & professionals need at be trained .882 .100 .160

Auditors need to train their staff .865 -.103

Communicate impact of IFRS .107 -.744 .171

Retention of key companies .208 .340 -.636 .313

Re-negotiation of existing contracts & agreements .274 .664 -.136



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Table No.11

Table showing the results of Factor Analysis of key challenges of IFRS convergence

Sl.

No

Factors

Description

Factor

Values

1

Regulatory

Issues

Changes in Indian Companies Act .894

Changes in Indian tax accounting and practices .919

Changes in Indian SEBI & IRDA regulations .902

2 Training

facilities

Inadequate Training .872

Training for corporate India and accounting

professionals

.882

Training for Auditors .865

3 Market value

conversion

Fair value measurement .776

Re-negotiation of existing contracts & agreements .664

4 Time period Insufficient preparatory period .794

5 Complexity Increased complexities in preparing financial

statements

.680

6 Tax Issues Increase of work and burden of an auditors .846

Increased tax burden on companies .533

Interpretation

The result of Factor Analysis shows that Regulatory issues, Adequate training facilities,

Market value conversion, time period for transition towards IFRS, Complexity involved in

preparing financial statements and taxation issues are the major Key challenges involved in IFRS

convergence.



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MAJOR FINDINGS AND SUGGESTIONS:

Major findings of the study:

63% of the respondents are ready to change in Accounting Practices due to

convergence with IFRS

54% of the respondents opined that IFRS is more advantageous than previous GAAP.

97% respondents opined that IFRS adoption must for MNCs than domestic companies

Mean, standard deviation and factor analysis shows that self-enforcement with

professional and board support, better corporate governance and better

communication are the key success factors for effective implementation of IFRS in India.

Mean, standard deviation and factor analysis shows that regulatory issues, training

facilities, market value conversion, and complexity and tax issues are the major key

challenges involved in effective implementation of IFRS.

Suggestion of the study:

Mandatory application should be enforced by ICAI and MCA for successfully and

effective implementation of IFRS.

Regulatory bodies and law makers like Companies Act, Tax, SEBI, IRDA has to amend

their laws and regulatory which meet IFRS requirement

Political pressure on International Accounting Standards Board (IASB) should be avoided

from various interest groups like private sector and government agencies.

IASB should publicize standards developed by it and get support from the accounting

profession, member countries and corporate management all over the world.

IASB should encourage member bodies to adopt IFRS.

Legislation should be passed to the effect that in case of any changes or amendments in

IASB, the local standards, if any, should be brought in line with these.

Local stock exchange can be used for cooperating in taking action against companies

that fail to comply with the IFRS.

Governing bodies of the various accounting profession can also be used to apply

disciplinary procedures in case of non-convergence with IFRS.

LIMITATION AND SUGGESTION FOR FUTURE RESEARCH

The major limitation of the study is that the limited variable of the study is small which restrict

to give generalization of the results. The study is based on the perception of respondents and

results may be subject to personal bias and study was only based on key success factor and

challenging factors. Hence, a future research can be made on the practical comparison of AS,

IAS and IFRS in order to know the practical difficulties and to know which standards yield more

benefits as an economy as a whole.



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CONCLUSION:

Looking at the present scenario of the world economy, implementation of Ind AS is a demand

and need of the day in order to compete globally. Implementation of IFRS is global investors

friendly, companies can expand their operation globally by following single set of standards.

Therefore, convergence with IFRS can be strongly recommended, but at the same time it is not

easy to converge with IFRS as we discuss there are many regulatory and other issues involved in

convergence with IFRS.

A sound theoretical and practical training in the light of international GAAPs, industry-

academia integration is very much necessary. More intensive training, conferences, seminars,

workshops from the experts might match up the required talent level for effective adoption and

smooth application of IFRS. Somewhere we need to start to understand the practicality of the

issue. And hence, we conclude that it is necessary to converge Indian GAAPs with IFRS by

arranging necessary rooms for universal adoptability.

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http://www.indianmba.com/Faculty_Column/FC21083.html



ISBN : 978-93-5254-333-5 19

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Standards in the Globalised Economy – An empirical study”, International Journal of

Advanced Research in Management and Social Sciences,Vol 2(8).

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71-73.

15. Singhal S. and Tulshan K.K. (2009). “Practical Guide to International Financial

Reporting Standards”, Bharat Law House Pvt. Ltd, New Delhi.

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