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Ifrs: Its Relevance, Challenges and Benefits.

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Ifrs: Its Relevance, Challenges and Benefits.
IFRS: ITS RELEVANCE, CHALLENGES AND BENEFITS.
Dr. J.Bordoloi, Associate Professor,
Haflong Govt. College bordoloijyotish27@gmail.com Ms. B.Bordoloi, Assistant Professor,
Lakhimpur Commerce College bohnisikha.bordoloi@yahoo.com Key Words:

Harmonize, Convergence, Comparability, Reliability, Credibility, Understandability.

Abstract:

The accounting standards are the ideal and standardized practice of accounting which aims to harmonize the accounting language. However the use of different accounting frameworks in different countries creates confusion for users of financial statements. The World has become an economic village due to globalization, privatization and liberalization. All the emerging economies are increasingly accessing the global markets not only in search of customers but to fulfill their capital needs. Increasing complexity of business and globalization of capital markets call for a single set of high quality accounting standards strengthen the confidence investors and other stakeholders of financial statements. IFRS is a single set of high quality, understandable and enforceable globally acceptable accounting standards prepared by taking into consideration the different environment of the world. So there is worldwide momentum for convergence of national accounting standards with IFRS. India cannot isolate itself from the developments taking place worldwide. IFRS converged accounting standards apply to Indian companies in 3 phases. However in our country there will be two separate sets of Accounting Standards as IFRS will be mandatory to a specific group of companies and Indian Accounting Standards are applicable to all other companies for whom IFRSs are not mandatory. IFRS conversion is more than an accounting change and may affect many aspects of a company. Though convergence to IFRS is a painstaking and a long process, it is expected that the adoption of IFRSs will have significant positive effects in the corporate


References: • Das Gupta, N. Accounting Standards: Indian and International, Sultan Chand and Sons, New Delhi. • IFRS in India-Key Aspects; RSM Astute Consulting Group • KPMG in India IFRS Monitor, issue 2, April 2010, kpmg.com/in • http://www.iasb.org • www.astuteconsulting.com[pic]
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