the partial fulfillment of MBA (Sem – III & IV) 2012-13 as a subject Management Research Project MRP
A Study of the Need &
Adoption of IFRS in India.
Professor Hardik Shah
Mr. Mukeshkumar Rajmal Jain
Roll No. 1414
Dr. Naresh Patel
Center for Management Studies,
Dharmsinh Desai University, Nadiad.
Indian Accounting Standards
Need for Universal GAAP
What is IFRS?
Benefits of Adopting IFRS
List of IFRS
List of IAS
3. IFRS and Indian GAAP
4. IFRS -A Comparison with Indian GAAP (Detail)
Agenda for Discussion
Accounting Policy Change
Provisions & Contingencies
Property, Plant and Equipments
Areas involving “Choices”
5. Presentation / Disclosures Differences
Cash flow Statements
Events after Balance Sheet
Related Party Transactions
6. Literature Review
RATIONALE FOR STUDY:
International Financial Reporting Standards (IFRS) is gaining momentum throughout the world as a single, consistent accounting framework and is positioned to become the pre dominant GAAP in the near future. More than 100 countries have moved to, or base their local standards on IFRS. Indian Accounting Standards have not kept pace with changes in IFRS. There are significant differences between IFRS and I-GAAP, because Indian standards remain sensitive to the legal and economic environment. The use of different accounting frameworks in different of the same underlying economic transactions creates confusion for users of financial statements. This confusion leads to in efficiency in capital markets across the world. Therefore, increasing complexity of business transactions and globalization of capital markets call for a single set of high quality accounting standards.
OBJECTIVES OF THE STUDY:
To study the Needs and Adoption process of IFRS in India.
To study the Challenges Associated with IFRS in India.
To study the utility for India in adopting IFRS.
To study the Difference between Indian GAAP & IFRS.
SCOPE OF STUDY:
IFRS known as International Reporting Standards
International Accounting Standards ( IAS’s) and Interpretations issued by the former IASC and SIC continue to applicable unless and until they are amended or withdrawn.
IFRS apply to the general purpose financial statements and other financial reporting by profit oriented entities – those engage in commercial, industrial , financial, and similar activities , regardless of their legal form.
Entities other than profit oriented business entities may also find IFRSs appropriate.
General purpose financial statements are intended to meet the common need of the shareholders, creditors, employees, and the public at large for information about entity’s financial position, performance, and cash flows.
Other financial reporting includes information provided outside financial statements that assists in the interpretation of a complete set of financial statements or improves users’ ability to make efficient economic decisions.
IFRS apply to individual company and consolidated financial statements.
A complete set of financial statement includes a balance sheet, an income statement, a cash flow statements, a statement showing either all changes in equity or changes in equity other than tho se arising from investments by and distributions to owners, a
summary of accounting policies and explanatory...