Ifrs in India

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IFRS...
in India

International Financial Reporting
Professor Uri Ronnen
Year:2012/2013

Table of Contents

What is IFRS?...........................................................................................................2

What is the difference between Adoption and Conversion of IFRS ...............4

The current situation of Accounting India :If the conversion is not a problem the total adoption is still delayed ………………..........................………........………….5

Main difference between Ind-AS and IAS …………………........................………..6

Case study : the Compant WIPRO ltd ………………...................………………...7

Conclusion ............…..............................................................…...………..................22

What is IFRS

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) in 2001.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.  Its principal objectives are:

to develop a single set of high quality, understandable, enforceable and globally accepted international financial reporting standards (IFRSs) through its standard-setting body, the IASB; to promote the use and rigorous application of those standards; to take account of the financial reporting needs of emerging economies and small and medium-sized entities (SMEs); and to promote and facilitate adoption of IFRSs, being the standards and interpretations issued by the IASB, through the convergence of national accounting standards and IFRSs. The governance and oversight of the activities undertaken by the IFRS Foundation and its standard-setting body rests with its Trustees, who are also responsible for safeguarding the independence of the IASB and ensuring the financing of the organisation. The Trustees are publicly accountable to a Monitoring Board of public authorities.

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 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. Indeed, different countries employ different Accounting Standards while computing the Profitof a Company. It may happen if the Profits are computed as per US Accounting Laws thr profits are $100 Billion but when the same profits are computed as per UK Accounting Laws the Profits may turn out to be say $50 Billion and when computed as per the Indian Accounting Laws, the Profits may turn out to be $200 Billion ( Hypothetical Figures). Profils computed as per different accounting laws of different countries always yield different figures.So as to remove this discrepancy in Accounting across the Globe,Countries world over decided to apply unifor standards of accounting so as to arrive at Uniform profits across the Globe. It is expected that IFRS adoption worldwide will be beneficial to investors and other users of financial statements by Reducing the Costs of Comparing alternative investments and increasing the Quality of Information.The companies are also exoected to benefit, as investors will be more willing to provide financing. Currently, over 100 countries permit or require IFRS for public companies, with more countries expected to transition to IFRS by 2015. Proponents of IFRS as an international standard maintain that the cost of implementing IFRS could be offset by the potential for compliance to improve credit ratings. IFRS is sometimes confused with IAS (International...
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