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Harmonization of Accounting Practices: A Study of Selected Pharmaceutical Companies in India

International Journal of Financial Management

Volume 2 Issue 3

Published: 2012
Author(s) Name: Paritosh Chandra Sinha, Santanu Kumar Ghosh and Sunil Nandi | Author(s) Affiliation:
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Abstract

The study investigates whether corporate disclosure practices of Indian pharmaceuticals firms approach to harmonize with IFRS. It suggests that the firms follow material disclosures if the accounting policies are made mandatory for the companies while they show diversity if there is scope for alternative accounting treatments. Besides the empirical examination, the present study also puts forward a new methodological approach (viz., Partial Compatibility Index) in measuring the level of harmonization. The empirical results show that there is still space of diversification since the C- index figure is below its moderate figure (0.60) and the target figure (1.00) as well

Keywords: IFRS, Accounting Policies, Corporate Practices

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