“IFRS- Problems and Challenges in First Time Adoption”
Asst. Prof. Sumit Acharya.
Shree Swaminarayan Institute of Management
IFRS- Problems and Challenges in First Time Adoption
* Sumitkumar S. Acharya
A B S T R A C T
Trust and transparency led to a discussion of the fundamental purpose of financial reporting. Consistent, comparable and understandable financial information is the lifeblood of commerce and making investment. In India the Institute of Chartered Accountants of India (ICAI) has decided to adapt IFRS for accounting periods commencing on or after April 1, 2011. This paper deals with the Problems and Challenges faced in the process of convergence in Indian perspective and measures taken to address the challenges.
India today has become an international economic force.To stay as a leader in the international market, India opted the changes it need to interface Indian stakeholders', the international stakeholders' and comply with the financial reporting in a language that is understandable to all of them. The International Financial Reporting Standards (IFRS) aims to make international financial reporting comparisons as easy as possible because each country has its own set of accounting rules. It is a set of international accounting and reporting standards that will help to harmonize company financial information, improve the transparency of accounting, and ensure that investors receive more accurate and consistent reports. 1.2 Objectives of the Study:
1) To study the Problems and Challenges faced by Indian Companies in the process of Convergence to IFRS. 2) To focus on the Measures taken to address the Challenges. 1.3 Methodology:
For the purpose of the present study, mainly literature survey and secondary data has been used. The required secondary data was collected from the authorized Annual Reports and Official Website of ICAI and IFRS, various...