indian accounting standards- evolution or...

National Seminar on “IND-AS : A Road Map for IFRS in India”

VVPGC March 18 & 19, 2016

ISBN : 978-93-5254-333-5 1

INDIAN ACCOUNTING STANDARDS- EVOLUTION OR REVOLUTION

Dr. Vasanthi Reena Williams Ph.D., MBA, M.Com, LLB, PGDMM, DCPMIMA, MNIPM, MQCFI, FIARA,

HOD, VidyaVikas Post Graduate Dept. of Commerce,

Bannur Road, Mysuru.

09886045663

[email protected]

Ms. Gowhar Taj

M.Com, IV Sem,

VidyaVikas Post Graduate Dept. of Commerce,

Bannur Road, Mysuru.

ABSTRACT

The Institute of Chartered Accountancy of India (ICAI), is India’s Standards setting body and has

been continually attempting to provide an exemplary accounting standard to provide

transparency and relevant additions to bring the Indian Accounting Standards in line with IFRS.

The process of achieving congruence with IFRS, is based on India’s rapid economic growth and

the economic model focusing on foreign investments.

The focus of the paper is to address the major areas where the Indian Accounting Standards is

in harmonization with IFRS. This paper tries to compare and identify accounting practices of

Indian GAAP, IFRS and Indian Accounting Standards and address how Indian Accounting

Standards are in harmonization with IFRS. The objective being the removal of variations and

treatment of various accounts in attempting to be on par with global accounting standards both

in the preparation and presentation of financial statements to facilitate comparison without

reservations and ambiguities.

Key words: Indian Accounting Standards (IAS), International Financial Reporting Standards

(IFRS), Corporate Accounting.

1.1 INTRODUCTION:



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Accounting Standards are a set of uniform rules set by the standards setting body of a particular

country or region, for financial reporting. The standards setters set the rules based on a

preferred accounting treatment for specific financial transactions from the available set of

methods. Recommendations made by these standard setters on other policy statement are

referred to as recommendations. This paper tries to compare and identify accounting practices

of Indian GAAP, IFRS and Indian Accounting Standards and address how Indian Accounting

Standards are in harmonization with IFRS.

Hitherto, Indian Accounting Standards (IAS) and International Financial Reporting Standards

(IFRS) have their own set of standards for financial reporting. There are many differences that

can be identified between the system adopted for accounting treatment in IAS and IFRS.

Literature on the subject available in texts and research studies mention the fact that all the

accounting standards made between 1973 and 2001 are referred to as Indian Accounting

Standards. From financial year April 2001 onwards, all accounting standards follow the IFRS,

which made identical rules for accounting to ensure uniformity in presenting financial

statements and following certain uniform standards. The main objective of harmonization is to

bridge the gap of differences of various accounting standards and to remove alternative

practice being followed hitherto and bring about an accepted standard in presentation. Infact

the International Accounting Standards is trying to ensure that all countries around the world

support their standards, in an effort to develop a set of international accounting standards for

all to follow and bring about harmonization in presenting financial statements.

1.2 SIGNIFICANCE OF THE STUDY:

The International Accounting Standards Committee (IASC) in the early 2001, developed 41

standards known as International Accounting Standards. Many of these standards were revised,

and the second series of standards known as International Financial Reporting Standards (IFRS),

was introduced to India as well. The entry of the IFRS system of preparing financial statements

brought about several changes and helped in developing the present standards which has

furthered in the harmonization process by noting and comparing points of agreement and

disagreement and converging the different systems together as a new system of financial

reporting. Various authors define harmonization as the comparison of various standards,

producing agreed standards and then bringing uniformity. The paper makes an attempt to

know about comparability and transparency of financial information which helps the global

investors and businessman to take their investment decisions.

Harmonization of accounting procedures can help Indian companies to consolidate their

overseas subsidiaries or overseas business associates and making informed decisions in terms



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of investments, diversification and collaboration. Further, it would help in saving precious time

and money in consolidating the divergent financial statements when business decisions need to

be made.

1.3 OBJECTIVE OF THE STUDY:

Keeping in view the changing scenario in the financial and accounting system front, the study

focuses on the evolution and revolution of Indian Accounting Standards. With this in mind, the

following objectives have been framed.

1. To study the significant relationship between Indian Accounting Standards and the

International Financial Reporting Standards (IFRS)

2. To study the variations and treatments of various accounting transactions with

reference to Indian GAAP, IFRS and IND AS.

3. To study the need for the adoption of IFRS.

1.4 METHODOLOGY:

The study is based on secondary data which has been collected from various journals on the

subject, published books, reports, related websites and newspapers.

1.5 DISCUSSIONS:

Coopers (2006), in their publication on the comparison of IFRS, discuss about the convergence

of the US GAAP and IFRS and the impact of such convergence on the Indian accounting

scenario. Debating on aligning Indian GAAP more closely to IFRS or adopting IFRS as it is. The

report mentions that effective corporate governance and ethics could remain a myth in a world

of divergent accounting and reporting frameworks. Therefore to make accounting and

reporting framework successful and effective, it should be able to communicate with the

investors and not just base the statements on technical compliance with rules and regulations.

The report presented by Pricewaterhouse Coopers also mentions that the Indian accounting

fraternity needs to consider a strategy to align itself with the evolving global GAAP with active

participation from the Industry.

J P and MN Chekovick (2007) address the adoption and applicability of the Indian Accounting

Standards with the International Financial Reporting Standards. The article highlights major

areas where the Indian Accounting Standards lack harmonization with IAS. They suggest that if

India wants to attract foreign capital, there is need for ensuring transparency in financial

dealings. Bhattacharjee (2009) did a study on the adoption of IFRS in Bangladesh. The author

argues about the trade-off between the scale advantages in IFRS which is designed globally by



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highly sophisticated authority versus the accounting systems practiced in Bangladesh. Sheikh

(2013) through their study have tried to analyze the level of IFRS compliance of Malaysian non-

financial firms, as per information provided in their Annual report and listed on the main

market of Bursa Malaysia. The study identifies that the non-financial companies that were

listed on major market of Bursa Malaysia were highly compliant with the IFRS formats and were

supporting the economic implications of enhanced financial reporting with higher IFRS

compliances. The study also reveals that those firms that adopted IFRS, followed good

corporate governance and transparency and disclosure practices. They propose that with

accounting converging to the IFRS system can help bridge the gap between different accounting

systems, reduce information asymmetries of the institutional investors for cross border

investment on trading platforms.

Shrivastava & Rawat (2015) have focused their study on the implications of IFRS, process of

adopting IFRS and its effect on Indian Corporate. Their study shows that the outcome of

implementing IFRS would be very positive as they would be able to reap the benefits of global

accounting standards, irrespective of various challenges involved in adopting IFRS in India. They

mention that convergence to IFRS would significantly change the contents of corporate

financial statements as there will be a more refined measurement of performance and

disclosure of state of affairs, greater transparency and better corporate governance practices.

Similarly Rathore (2012) highlights the greater benefits that would flow from harmonization

would be the comparability of international financial information and promote flow of

international investment. The author also mentions that harmonization would save time and

money that is currently being spent to consolidate divergent financial information for

complying with different rational laws and practices. It would help in raising accounting

standards to the highest possible level and to be consistent with local economic, legal and

social conditions. Similarly, Sharma (2013) focused his study on the problems and challenges

faced by Indian corporate in the process of convergence of IFRS. He suggests that there is a

need to have a systematic approach by gearing to continuously update and ensure qualitative

corporate financial reporting standards through effective control and enforcement mechanism.

The following table shows the comparison of Indian GAAP, IFRS AND IND-AS (on the

presentation of financial statements and cash flows). The source of the following information

has been collected from a report published on 26th February 2015, by Deloitte – Indian GAAP,

IFRS and Ind AS-A Comparison.

TOPIC Indian GAAP IFRS IND-AS



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Presentation

of Financial

Statements

AS-1- Disclosure of Accounting

Policies/Schedule III to the

Companies Act, 2013.

AS 5-Net Profit or loss for the

Period, Prior Period Items and

Changes in Accounting Policies

Note: An exposure draft of AS1

(Revised), Presentation of

Financial Statements has been

issued by the ICAI. Pending

finalization, the discussion

below is based on AS 1 as

notified under the Companies

(Accounting Standards Rules),

2006.

IAS 1 – Presentation of

Financial Statements

Ind AS 1-

Presentation of

Financial

Statements.

Components

of financial

statements

The requirements for the

presentation of financial

statements are set out in

Schedule III to the Banking

Regulation Act, 1949 ( for

banks), the regulations issued

by the Insurance Regulatory

and Development Authority (

for insurance companies) and

the SEBI Guidelines for Mutual

Funds ( for mutual funds)

together with the Accounting

Standards notified under the

Companies (Accounting

Standards) Rules, 2006.

As per the Companies Act, 2013

‘financial statement’ in relation

to a company, includes (a) a

balance sheet as at the end of

the financial year (b) a profit

A complete set of

financial statements

under IFRS comprises

(a) a statement of

financial position; (b) a

statement of profit or

loss and other

comprehensive income;

(c) a statement of

changes in equity; (d) a

statement of cash flows;

and

(e) notes comprising

significant accounting

policies and other

explanatory

information.

Comparative figures are

presented for one year.

A complete set of

financial

statements under

Ind As comprises

(a) balance sheet

as at the end of

the period;

(b) statement of

profit and loss;

(c) statement of

changes in equity

; (d) a statement

of cash flows;

(e) notes

including

summary of

accounting

policies and other

explanatory



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and loss account , or in the case

of a company carrying on any

activity not for profit, an

income and expenditure

account for the financial year

(c) cash flow statement for the

financial year (d) a statement

of changes in equity, if

applicable; and (e) any

explanatory note annexed to,

or forming part of, any

document referred to above.

When a change in

accounting policy has

been applied

retrospectively or items

of financial statement

have been

restated/reclassified, a

statement of financial

position is required as at

the beginning of the

earliest comparative

period.

Additional comparative

information may be

presented, if it is in

accordance with IFRS,

but it need not comprise

a complete set of

financial statements.

information.

Comparative

figures are

presented for one

year. When a

change in

accounting policy

has been applied

retrospectively or

items of financial

statements have

been restated/

reclassified, a

balance sheet is

required as at the

beginning of the

earliest period

presented.

Similar to IFRS.

Components

of financial

statements

Comparative (corresponding)

figures are presented for one

year as per the requirements of

Schedule III.

Separate financial statements

are required to be presented by

all entities. The Companies Act

2013 requires a company

having one or more

subsidiaries, to prepare a

consolidated financial

statement of the company and

of all the subsidiaries in the

same form and manner as that

of its own. The term ‘subsidiary’

includes an associate company



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and joint venture. Certain

relaxations have been provided

from the preparation of


statements.

Equity listed companies are

required to present


statements in addition to

separate financial statements

of the parent in terms of the

Listing Agreement with the

Stock Exchanges and the SEBI

Guidelines.

Formats Schedule III prescribes the

minimum requirements for

disclosure on the face of the

balance sheet and statement of

profit and loss and notes.

AS 3 provides guidance on line

items to be presented in the

statement of cash flows.

Specifies the line items

to be presented in the

statement of financial

position, statement of

profit or loss and other

comprehensive income

and statement of

changes in equity.

Recent amendments

provide guidance for

identifying additional

line items and sub-

totals, clarify

aggregation or

disaggregation of line-

items, clarify method of

presentation of other


Ind AS1 does not

include any

illustrative format

for the

presentation of

financial

statements. The

ICAI has issued an

exposure draft of

the Ind AS-

compliant

Schedule III.

The recent

amendments to

IAS 1 ‘Disclosure

Initiatives’ are yet

be made to Ind

AS1.



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of equity- accounted

associates and joint

ventures, clarify that

materiality

considerations apply to

all parts of financial

statements including

disclosures and provide

additional examples of

possible ways of

ordering notes and

remove some unhelpful

examples of significant

accounting policies. This

amendment is effective

for annual periods

beginning on or after 1

January 2016 with early

adoption permitted.

IAS 7 provides guidance

on line items to be

presented in the

statement of cash flows.

Ind AS7 provides

guidance on line

items to be

presented in the

statement of cash

flows.

Definition of

‘material’

and

disclosure of

material

information

Financial statements should

disclose all ‘material’ items, i.e,

items, the knowledge of which

might influence the decisions of

the user of the financial

statements.

Omissions or

misstatements are

material if individually

or collectively they could

influence the economic

decisions that users take

on the basis of financial

statements.

Recent amendments to

IAS 1 clarify that an

entity should not reduce

the understandability of

its financial statements

While the

definition of

material is similar

to that under

IFRS, the recent

amendments to

IAS 1 ‘Disclosure

Initiatives’ are yet

to be

incorporated in

Ind AS1. Under

Ind AS 1, a

specific disclosure



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by obscuring material

information with

immaterial information

or by aggregating

material items that have

different natures or

functions. Where some

IFRSs specify minimum

information that is

required to be included

in the financial

statements including the

notes, such a specific

disclosure is not

required to be provided

fi the information

resulting from that

disclosure is not

material.

required by an Ind

AS is not provided

if the information

is not material

except when

required by law.

Fair

presentation

Fair presentation requires

compliance with the applicable

requirements of the Companies

Act, 2013 and the other

regulatory requirements and

the application of the

qualitative characteristics of

the Accounting Standards

Framework.

Departures from Accounting

Standards or Companies Act,

2013 are prohibited unless

permitted by other regulatory

framework for example, the

Insurance Regulatory and

Development Authority.

Fair presentation

requires faithful

representation of the

effects of the

transactions, other

events and conditions in

accordance with the

definitions of a

recognition criteria for

assets, liabilities, income

and expenses set out in

the Framework.

In extremely rare

circumstances in which

management concludes-

that compliance with

requirements of a

Similar to IFRS



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Standards or

Interpretation is so

misleading, it may

depart from the

Standard of the

Interpretation. Reasons

for departure and why

application of the

Standard of the

Interpretation would

have been misleading

and the financial impact

of applying the standard

are required to be

disclosed.

Classification

of financial

liabilities

under

refinancing

arrangement

s

There is no guidance in the

existing standards. Schedule II

specifies that financial liabilities

where the company does not

have an unconditional right to

defer settlement of the liability

fo at least 12 months after the

reporting date will be classified

as current liabilities.

Current even if the

agreement to refinance

or reschedule payments

on a long-term basis is

completed after the end

of the reporting period

and before the financial

statements are

authorized for issue.

Similar to IFRS.

Classification

of financial

liabilities

upon breach

of covenants

There is no guidance in the

existing standards. Schedule III

specifies that financial liabilities

where the company does not

have an unconditional right to

defer settlement of the liability

for at least 12 months after the

reporting date will be classified

as current liabilities.

The Guidance Note on Revised

Schedule VI to the Companies

When an entity

breaches a provision of

a long-term loan

arrangement on or

before the end of the

reporting period with

the effect that the

lability becomes payable

on demand, it classifies

the liability as current,

even if the lender

agreed, after the

Where there is a

breach of a

material provision

of a long-term

arrangement on

or before the end

of the reporting

period with the

effect that the

liability becomes

payable on

demand on the



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Act, 1956 (Schedule VI has now

been superseded by Schedule III

under the Companies Act, 2013,

issued by the ICAI states that ‘In

the Indian context, the criteria

of a loan becoming repayable

on demand on breach of a

covenant, is generally added in

the terms and conditions as a

matter of abundant caution.

Also, banks generally do not

demand repayment of loans on

such minor defaults of debt

covenants. Therefore, in such

situations, the companies

generally continue to repay the

loan as per its original terms

and conditions. Hence,

considering that the practical

implications of such minor

breach are negligible in the

Indian scenario, an entity could

continue to classify the loan as

‘non-current’ as on the Balance

Sheet date since the loan is not

actually demanded by the bank

at any time prior to the date on

which the Financial Statements

are approved” .

reporting period and

before the authorization

of the financial

statements for issue, not

to demand payment as

a consequence of the

breach.

However the liability can

be classified as non-

current if the lender has

agreed before the end of

the reporting period to

provide a grace period

of minimum 12 months

after the reporting

period within which the

breach can be rectified

and the lender cannot

demand immediate

repayment.

reporting date, if

the lender has

agreed, after the

reporting period

and before the

approval of the

financial

statements for

issues, not to

demand payment

as a consequence

of the breach the

loan will not be

classified as

current.

Presentation

of income

statement/st

atement of

comprehensi

ve income.

Schedule III requires an analysis

of expense by nature. Any item

of income or expenditure which

exceeds one per cent of the

revenue from operations of Rs

100,000, whichever is higher,

needs to be disclosed.

An analysis of expenses

is presented using a

classification based on

either the nature of

expenses of their

function whichever

provides information

that is reliable and more

Entities should

present an

analysis of

expenses

recognized n

profit or loss

using a classified

based only on the



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relevant, if presented by

function, specific

disclosure by nature are

provided in the notes.

When items of income

or expense are material,

their nature and amount

are separately disclosed.

nature of

expense.

Presentation

of profit or

loss

attributable

to non-

controlling

interests

(minority

interests)

Profit or loss attributable to

minority interests is disclosed s

deduction from the profit or

loss for the period as an item of

income or expense ( as per

AS21).

Profits or loss

attributable to non-

controlling interests and

equity holders of the

parent are disclosed in

the statement of profit

or loss and other


as allocations of profit

or loss and total


for the period.

Similar to IFRS.

Statement of

profit or loss

and other

comprehensi

ve income

(statement

of

comprehensi

ve income)

Statement of profit or loss is the

Indian GAAP equivalent of

separate statement of profit or

loss under IFRS.

Some items such as revaluation

surplus which are treated as

‘other comprehensive income’

under IFRS/ Ind AS are

recognized directly in equity

under Indian GAAP.

The statement of profit

or loss and other


includes all items of

income and expense-

(i.e, all ‘non-owner’

changes in equity)

including (a)

components of profit or

loss and (b) other


(i.e, items of income and

expense that are not

recognized in profit or

loss as required or

permitted by other

An entity is

required to

present all items

of Income and

expense including

components of

other

comprehensive

income in a

period in a single

statement of

profit and loss.



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IFRSs). These items may

be presented either.

* In a single statement

of profit or loss and

other comprehensive

income ( in which there

is a sub-total for profit

or loss); or

* In a separate

statement of profit or

loss (displaying

components of profit or

loss) and a statement of

profit or loss and other


(beginning with profit or

loss and displaying

components of other

comprehensive income).

Statement of

changes in

equity

A statement of changes in

equity is currently not

presented.

Movements in share capital,

retained earnings and other

reserves are to be presented in

the notes to accounts.

The statement of

changes in equity

includes the following

information;

* Total comprehensive

income for the period.

* The effects on each

component of equity of

retrospective

application or

retrospective

restatement in

accordance with IAS 8;

and

Similar to IFRS



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* For each component

of equity, a

reconciliation between

the opening and closing

balances, separately

disclosing each change.

Extraordinar

y items.

Extraordinary items are

disclosed separately in the

statement of profit and loss and

are included in the

determination of net profit or

loss for the period.

Items of income or expense to

be disclosed as extraordinary

should be distinct from the

ordinary activities and are

determined by the nature of the

event or transaction in relation

to the business ordinarily

carried out by an entity.

Presentation of any

items of income or

expense as

extraordinary is

prohibited

Similar to IFRS

Reclassificati

on

A disclosure is made in financial

statements that comparative

amounts have been reclassified

to conform to the presentation

in the current period without

additional disclosures for the

nature, amount and reason for

reclassification.

When comparative

amounts are

reclassified, nature,

amount and reason for

reclassification are

disclosed

Similar to IFRS

Critical

Judgements

AS 1 does not specifically

require disclosure of

judgements that management

has made in the summary of

significant accounting policies

or other notes.

Requires disclosure of

critical judgements

made by management

in applying accounting

policies.

Similar to IFRS.



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Estimation

uncertainty

AS1 does not specifically

require an entity ot disclose

information about the

assumptions that it makes

about the future and other

major sources of estimation

uncertainty at the end of the

reporting period though other

standards may require certain

disclosures of the same.


key sources of

estimation uncertainty

at the end of the

reporting period, that

have a significant risk of

causing a material

adjustment to the

carrying amounts of

assets and liabilities

within the next financial

year.

The nature of the

uncertainty and the

carrying amounts of

such assets and

liabilities at the end of

the reporting period are

required to be disclosed.

Similar to IFRS.

Capital AS1 does not require an entity

to disclose information that

enables users of its financial

statements to evaluate the

entity’s objectives, policies and

processes of managing capital.


information about

management of capital

and compliance with

externally imposed

capital requirements, if

any.

Similar to IFRS

Statement of

Cash Flows

AS 3-Cash flow Statements IAS 7-Statement of Cash

Flows

Ind AS 7-

Statement of



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Cash Flows

Statement of

Cash Flows-

bank

overdrafts

Bank overdrafts are considered

as financing activities

Included as cash and

cash equivalents if they

form an integral part of

an entity’s cash

management

Similar to IFRS

Statement of

Cash Flows-

cash flows

from

extraordinar

y items

Cash flows from items disclosed

as extraordinary are classified

as arising from operating,

Investing or financing activities

as appropriate, and separately

disclosed.

As presentation of items

as extraordinary is not

permitted, the cash flow

statement does not

reflect any items of cash

flow as extraordinary

Similar to IFRS

Statement of

Cash Flows-

interest and

divident

For Financial enterprises:

Interest paid and Interest and

dividend received are at be

classified as operating

activities.

Dividend paid is to be classified

as financing activity.

For other enterprises:

Interest and dividends received

are required to be classified as

investing activities. Interest and

dividends paid are required to

be classified as financing

activities.

May be classified as

operating , investing or

financing activities in a

manner consistent from

period to period.

Similar to IFRS



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Statement of

Cash Flows-

acquisition

and disposal

of properties

held for

rental to

others

No specific guidance Entities might routinely

sell items of property,

plant and equipment

that they have

previously held for

rental to others. Cash

payments/receipts in

respect of

acquisition/disposal of

such assets are

classified as operating

activities.

Similar to IFRS

Statement of

Cash Flows-

changes in

ownership

interest

No specific guidance Changes in ownership

interest in a subsidiary

without loss of control

are treated as financing

activities.

Similar to IFRS

1.6 CONCLUSION:

The Ministry of Corporate Affairs (MCA) on 16th February 2015 in its notifications specified that

the Indian Accounting Standards (IND AS) are applicable to certain class of companies and set

out the dates of applicability. The key requirements of the rules which are specified for

different class of companies are as follows:

Voluntary adoption: The notification specifies that companies may voluntarily adopt IND AS for

financial statements for accounting periods beginning on or after April 1st 2015, with the

comparatives for the periods ending 31st March 2015 or thereafter. Once a company adopts the

IND AS, it will be required to follow the same for all the subsequent financial statements.

Mandatory adoption:

For the accounting periods beginning on or

after 1 April 2016

For the accounting periods beginning on or

after 1April 2017

1. The following companies will have to

adopt IND AD for financial statements

from the above mentioned date:

a. Companies whose equity and /or debt

1. The following companies will have to

adopt IND AS for financial statements

from the above mentioned date:

a. Listed companies having net



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securities are listed or are in the

process of listing on any stock

exchange in India or outside India

(listed companies) and having net

worth of Rs.500 crores or more.

b. Unlisted companies having a net

worth of Rs 500 crores or more.

c. Holding, subsidiary, joint venture or

associate companies of the listed and

unlisted companies covered above.

2. Comparative for these financial

statements will be periods ending 31

March 2016 or thereafter.

worth of less than Rs 500 crore.

b. Unlisted companies having net

worth of Rs.250 crore or more but

less than Rs.500 crore.

c. Holding, subsidiary, joint venture

or associate companies of the

listed and unlisted companies

covered above.

2. Comparative for these financial

statements will be periods ending 31

March 2017 or thereafter.

The roadmap will not be applicable to:

Companies whose securities are listed or in the process of listing on SME exchanges.

Companies not covered by the roadmap in the ‘Mandatory adoption’ categories above.

Insurance companies, banking companies and non-banking finance companies.

These companies should continue to apply existing Accounting Standards prescribed in the

Annexure to the Companies (Accounting Standards) Rules, 2006, unless they opt for voluntary

adoption. Insurance companies, banking companies and non-banking finance companies

cannot voluntarily adopt the IND AS.

References to Indian GAAP are to the standards notified by the Central Government under the

Companies (Accounting Standards) Rules, 2006 (applicable to all companies) vide notification

G.S.R739 (E) dated 7th December 2006, as amended and to the relevant requirements of the

Companies Act, 2013. IFRSs are Standards and Interpretations adopted by the International

Accounting Standards Board. They comprise the International Financial Reporting Standards,

International Accounting Standards, and Interpretations issued by the IFRS Interpretations

Committee or the former Standing Interpretations Committee. IND AS refers to the accounting

standards as specified in the Annexure to the Companies (Indian Accounting Standards) Rules,

2015.

As students of accounting, we need to be aware of the various accounting practices followed by

countries. However, the globalization of trade and commerce calls for harmonization of

accounting practices and therefore keeping in view imperative need for staying competitive,

India needs to ensure that they follow the International Standards for ensuring transparency in

financial transactions with their counterparts , customers and business conglomerates from all



ISBN : 978-93-5254-333-5 19

over the world. Going through the available literature on the subject, we may conclude that

change is imperative for ensuring India as a global player. Several changes have been made

form 2001 towards accounting practices being followed in India and as we are all aware, the

phases in implementation of IFRS has already been specified by the Ministry of Corporate

Affairs, where companies having a net worth of over Rs 1000 Crores were mandated to

implement IFRS from April 2015, while those companies with a net worth of over Rs 500 Crores

are supposed to implement IFRS from fiscal year beginning April 2016.

While applying specific accounting practices, it is important to consult relevant accounting

standards with reference to Indian Accounting standards and rules prescribed by the Securities

and Exchange Board (SEBI).

BIBLIOGRAPHY

1. Bhattacharjee Sumon (2009), Problems of adoption and application of IFRS in

Bangaladesh, International Journal of Business & Management, Vol.4, No.12.

2. Bin Abu Hassan MD Isa & Junaid M.Shaikh (2013), IFRS compliance and NonFinancial

Information in Annual Reports of Malaysian Firms, The IUP Journal of Acccounting

Research & Audit Practices, Vol. XII, No.4 ,Oct 2013.

3. Deloitte (2015), Indian GAAP, IFRS and Ind AS- A Comparison. 26th February 2015.

4. Dr. Lal Jawahar , (2015), Accounting Standard Accounting Theory and Practice, Edition

:2015, Pg No: 275 -305

5. Dr. Lal Jawahar , (2015), Harmonization and Global Convergence of Accounting

Standard, Accounting Theory and Practice, Edition :2015, Pg No: 421-465

6. Dr. Sharma, Mahender (2013). IFRS and India- Its Problems and Challenges.

International Multidisciplinary Journal of Applied Research. Vol1. Issue 4. July 2013. ISSN

2320-7620.

7. Dr.Fakile Adeniran Samuel & Mr.Faboyede Olusola Samuel (2013). Impact of

International Financial Reporting Standards on Taxation. International Journal of

Business and Social Sciences. Vol4. NO 10. August 2014.

8. PricewaterhouseCoopers (2006), Similarities and Differences- A Comparison of IFRS , US

GAAP and Indian GAAP. November 2006. Available online at

http://www.pwc.in/assets/pdfs/india-publications-similarities-differences.pdf.

9. Rathore Shirin, (2012), Global Convergence of Accounting . International Accounting.

Pg No:257-281.

10. Rathore Shirin, (2012), Standard Setting in India. International Accounting Pg No:185-

256.



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11. Sharifah Sabrina Syed Ali & Michael Tinggi (2013), Factors influencing the students

choice of accounting as a major. The IUP Journal of Acccounting Research & Audit

Practices, Vol. XII, No.4 ,Oct 2

12. US GAAP-Quick Learning Module GAAP Compared. Retrieved from

http://usgaap.tripod.com/id6.html.

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