Adoption of International Financial Reporting Standards in Indian Corporate Sector

Abstract

The goal of this article is to track the evolution of the Indian business community’s embrace of International Financial Reporting Standards (IFRS). The goal of this IFRS is to guarantee that the users of financial statements are to be prepared in the accordance with IFRS, as well as interim financial reports prepared by such an entity that relate to a portion of the exercise covered by such financial statements, receive useful and accurate information. The Institute of Chartered Accountants of India (ICAI) was created by the Indian government through the ICAI Act, 1949, which aimed to standardise accounting procedures throughout the country. The ICAI formed the Accounting Standard Board in that same year to assist and standardise India’s varying approaches to accounting. The Indian accounting community has devised a three-step process, which can be summarised as follows: first, the impact of IFRS is evaluated; second, preparations are made for its adoption; and third, IFRS is fully implemented. Convergence of IFRS is demonstrated in its next section. Finally, this article outlines the procedures by which the Indian business sector has adopted IFRS.

Keywords: ICAI, IFRS, Corporate Sector, Accounting Standard Board

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