ppt ifrs saurav sbs

Implementation of IFRS 1

About the topic Reason to choose this topic Hypothesis Statement Data Analysis, Findings & Testing Conclusion & Recommendation Personal Experience

AGENDA

2

INTERNATIONAL FINANCIAL REPORTING STANDARDS

Implementation of IFRS


Phases of ImplementationPhase Date Coverage

Phase 1 Opening Balance Sheet as at April 1, 2011

Companies which are part of NSE Index-Nifty 50.

Companies which are part of BSE Index-BSE 30.

Companies whose shares or securities are listed on a stock exchange outside India.

Companies, whether listed or not, having net worth of more than INR 1000 crores.


Companies not covered in Phase 1 and having net worth exceeding INR 500 crores.


Listed companies not covered in the earlier phases.


RESEARCH METHODOLOGY


Statement of the Problem

To identify the possibility of implementation of IFRS in India.

Objectives of the Research

To find out the level of awareness regarding theprocess of convergence with IFRS.

To focus on the problems impeding the process of implementation of IFRS in India.

To find out the state of implementation of IFRS in India.


The International Financial Reporting Standard in India will FAIL in its first phase of implementation.

One of the main limitations is the sample size. Time and cost. Due to lack of awareness.

HYPOTHESIS STATEMENT

Limitations of the study:


Data Analysis and Finding


CONDITIONS

RESPONDENT

TOTAL

AUDITOR ACCOUNTANT ACADEMICS PROFESSIONALS

YES 6 18 6 14 44

NO 4 5 3 4 16

TOTAL 10 23 9 18 60

1. Awareness for IFRS Implementation by 2011 in India.


YES NO0

10

20

30

40

50

60

70

80

73.33

26.67

PERCENTAGE

Awareness for IFRS Implementation by 2011 in India.


CONDITIONS

RESPONDENT

TOTALAUDITOR ACCOUNTANT ACADEMICS PROFESSIONALS

In sufficient

knowledge 514

5 10 34

In sufficient human

resource 4 63

5 18

Time & Cost 1 2 1 2 6

Other 0 1 0 1 2

TOTAL 10 23 9 18 60

2.Major problem faced for Implementation of IFRS.


Major problem faced for Implementation of IFRS.

57%30%

10%

3%

In sufficient knowledgeIn sufficient human resourceTime & CostOther


NULL HYPOTHESIS (HO):

At maximum 60% of the respondents are considering insufficient knowledge as a problem to implement IFRS

ALTERNATIVE HYPOTHESIS (Ha):

At maximum 60% of the respondents are not considering insufficient knowledge as a problem to implement IFRS

The Z- Test is considered as test analysis.Ho: P ≤ 0.06

Ha: > 0.04

α=0.05 (Level of significance is assumed to be 5%)pHo=0.6 Hypothesizes value of the population are considering insufficient knowledge as a problem to implement IFRSqHo=0.4 Hypothesizes value of the population are not considering insufficient knowledge as a problem to implement IFRS

Objective 2To focus on the problems impeding the process of implementation of IFRS in India.


From Table we can clearly see that 57% of the respondents are considering insufficient knowledge as a problem to implement IFRS

N=60 (Number of respondents)= 34/60, or 0.57 sample proportion complying with considering insufficient

knowledge as problem for IFRS.= 26/60, or 0.43 sample proportion are not complying with considering insufficient

knowledge as problem for IFRS.This is one–right tailed sample proportion test: the critical value of z test from the

table for 0.45 of the area under the curve is 1.64Calculations of z value

0.5


The diagram represents the bell graph for the null hypothesis


CONDITIONS

RESPONDENT

TOTALAUDITOR ACCOUNTANT ACADEMICS PROFESSIONALS

Very

Familiar

0 2 1 1 4

Familiar 3 9 2 4 18

Uncertain 5 7 5 10 27

Not at all 2 5 1 3 11

TOTAL 10 23 9 18 60

3. Awareness of content of IFRS


7%

30%

45%

18%

Very FamiliarFamiliarUncertainNot at all

Awareness of content of IFRS.


NULL HYPOTHESIS (HO ): The International Financial Reporting Standard in

India will be fail in its first phase of implementation.

ALTERNATIVE HYPOTHESIS (Ha):

The International Financial Reporting Standards in India

will be success in its first phase of implementation. The Chi-Square is considered as test analysis.

Objective 3 To find out the state of implementation of International Financial Reporting Standards (IFRS) in India.


Calculation of Chi-Square Value

OBSERVED (O) EXPECTED (E) O – E ( O – E)^2 (O –E)^2 /E

0 0.66 -0.66 0.4356 0.66

3 3 0 0 0

5 4.5 0.5 0.25 0.055

2 1.83 0.17 0.289 0.1579

2 1.53 0.47 0.2209 0.1443

9 6.90 2.10 4.41 0.6391

7 10.35 -3.35 11.2225 1.0842

5 4.21 0.79 0.6241 0.1482

1 0.60 0.40 0.16 0.2666

2 2.70 -0.70 0.49 0.1814

5 4.05 0.95 0.9025 0.2228

1 1.65 -0.65 0.4225 0.2560

1 1.20 0.20 0.04 0.0333

4 5.40 -1.40 1.96 0.3629

10 8.10 1.90 3.61 0.4456

3 3.30 -0.30 0.09 0.272

TOTAL - - - 4.9293

The value of chi-square is calculated as follows


RESULT

Chi-Square value is derived as 4.9293 Chi-square table value at 5% level of

significance with a degree of freedom of 9 are 16.92

Since the Chi-square calculated value < Chi-square table value, the Ho is Accepted.


The survey has given us an idea about the state of International Financial Reporting Standards (IFRS) in India.

Majority of the respondents are aware about the convergence of IFRS and the Indian accounting standards but are not clear about the contents of IFRS.

The major problems faced by the clients during the implementation process is due to lack of knowledge of the accounting staff, insufficient human resources in the area of accounting and increase in time and cost due to the new method of recording financial statements, in that order.

Proper training in the field of financial accounting, individual IFRS and industry-specific IFRS is a must to make Indian accountants and financial professionals eligible enough to bring about a smooth transition.

Respondents also stated that changes should be made in the Companies Act.

Overall Conclusion


Providing an infrastructure for uniform interpretation and application for the standards.

Strengthening of the training infrastructure to ensure a quick dissemination of the standards.

The investors and external stakeholders should also be properly educated about the impending change so that they can understand the financial results of the company recording transactions under the International Financial Reporting Standards.

Proper training programs have to formulate and accounting and finance professionals should be trained so as to make the transition smoother.

Banks like Bank of Baroda have hired consultants to train their staff about IFRS. This practice should be taken up by all other banks and firms.

RBI and IBA should come out with specific guidelines to effect a smooth transition in the Indian banks.

Recommendations


This project has helped me to understand the importance and significance of the International Financial Reporting Standards to withstand in the global scenario as well.Apart from these general learning, I had the opportunity to explore the following areas

The origin, evolution, types, and the boundaries of International Financial Reporting Standards.

I clearly understood how to carry out a research. I understood various aspects of research in a more practical

manner, starting from identifying a problem to eliciting the solutions to that problem

I got the Knowledge about of statistical tools and analysis of data.

Learning Experience


THANK YOU.

ppt ifrs saurav sbs

Economy & Finance

problems impeding

null hypothesis

smooth transition

insufficient

test analysis

square table

ifrs implementation

accounting