ppt ifrs saurav sbs
DESCRIPTION
IFRSTRANSCRIPT
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
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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.
Phase 2 Opening Balance Sheet as at April 1, 2013
Companies not covered in Phase 1 and having net worth exceeding INR 500 crores.
Phase 3 Opening Balance Sheet as at April 1, 2014
Listed companies not covered in the earlier phases.
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RESEARCH METHODOLOGY
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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.
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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:
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Data Analysis and Finding
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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.
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YES NO0
10
20
30
40
50
60
70
80
73.33
26.67
PERCENTAGE
Awareness for IFRS Implementation by 2011 in India.
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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.
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Major problem faced for Implementation of IFRS.
57%30%
10%
3%
In sufficient knowledgeIn sufficient human resourceTime & CostOther
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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.
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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
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The diagram represents the bell graph for the null hypothesis
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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
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7%
30%
45%
18%
Very FamiliarFamiliarUncertainNot at all
Awareness of content of IFRS.
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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.
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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
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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.
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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
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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
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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
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THANK YOU.