Accounting Standards and Financial Reporting in India

Author: Sweta Dixit

Abstract:
There is a growing international agreement on the International Financial Reporting Standards as suitable standards for assessment of the financial health of a company across the globe. Globalization has laid down a way for all the countries to adopt a single set of accounting standards. Recent years have seen major changes in financial reporting worldwide under which the most obvious is the continuing adoption of international financial reporting standards universal. Financial reporting in India is undergoing an important change due to the adoption of Indian accounting Standards (Ind AS) that are converged with International financial Reporting Standards (IFRS). The notification of these IFRS converged standards fills up significant gaps that exist in the current accounting guidance, and India can claim to have financial reporting standards that are contemporary and virtually at par with the leading global standards. This will, in turn, improve India’s place in global rankings on corporate governance and transparency in financial reporting. Around 150 countries have already adopted IFRS in their economy. But in India, Ministry of corporate affairs has decided to go for full convergence of IFRS by 2018 through IND AS. The present paper deals with the status of IFRS adoption in India.

Keywords:IFRS, Financial Reporting, IAS, ASB, ICAI, SEBI.

DOI:

International Journal of Trade & Commerce (Vol: 7 Issue:1)