VSRD International Journal of Organization and Supervision Research, Vol. 3 No . 2 Feb 2013 e-ISSN: 2231-248X, p-ISSN: 2319-2194 © VSRD Foreign Journals: www.vsrdjournals.com
IFRS IMPLEMENTATION " ISSUES AND CHALLENGES FOR INDIA”
1 Affiliate 2Researsh
Kapoor and 2Jyoti Ruhela*
Mentor, Scholar, 1, 2Department Trade & Organization Administration, MMH College (CCS University), Ghaziabad, Uttar Pradesh, INDIA. *Corresponding Author: [email protected] com
Today is the era of globalization. IFRS is growing its wings and India is not the exclusion. In India IFRS has been implemented in phased fashion. Till today it has been built mandatory for a few specific group of listed businesses. Although many countries of the world had been benefitted after implementing IFRS, it is both equally threat and opportunity for India. Indian companies have different challenges and issues to implement IFRS. The biggest challenge in India is to balance IFRS regarding existing legal guidelines. Proper implementation of IFRS will require significant amendment in existing laws. The basic aim of this research paper is usually to trace the actual problems relating to IFRS setup in India and to recommend remedial measures. Keywords: IAS, Indian GAAP, US GAAP, IASB, Good Values, MCA.
1 . LAUNCH: CONCEPTUALIZING THE DEFINITION OF IFRS The complete abbreviation with the term " IFRS” is definitely international monetary reporting common (IFRS). IFRS has been developed by International accounting standard panel (IASB). According to IASB " IFRS refers to a set of foreign accounting normal stating just how particular type of transactions and also other events ought to be reported monetary statement” or, in other words IFRS refers to recommendations and rules that companies and organizations are required to comply with in organizing and offering their monetary statements. As a result, IFRS are definitely the rules, suggestions, standards established by IASB that companies and organizations across the world will abide by uniformly and transparently inside their preparation and presentations of economic statements. installment payments on your NEED FOR IFRS IN INDIA Following are definitely the arguments in favour of IFRS execution in India Globalization of Economies: As today almost all of economies have been globalized and India is likewise not the exception. It has created the need for a consistent practice to bring more visibility and for rewarding the need for wider and challenging users. Pertaining to Raising Capital from Offshore: Indian companies are raising capital from international which needs all
details in Intercontinental standard understandable to all of them. For Better Comparability of economic Statements: Intended for better comparability of financial assertions it is necessary that accounting procedures in different countries of the world will be uniform. Pertaining to Helping the MNCs to organize Consolidated Economic Statements: The MNCs which are operating in distinct countries on the planet are finding it difficult to prepare consolidated financial transactions due to diverse accounting guidelines and practices in different countries of the world. To Comply With Raising Corporate Recognition: today corporate and business awareness and corporate governance requirements have improved many folds which require an advanced and uniform accounting practice. For Reducing Costs and Period: The Indian companies which can be operating in several countries on the planet are planning financial assertions separately for each country which is wasting time and money. Thus, the implementation of uniform accounting practice will certainly reduce as well as cost considerably. Better Quality info: the implementation of consistent accounting practice will provide significantly better quality of information.
Jyoti Ruhela and W. Kapoor
VSRDIJBMR, Vol. 3 (II), 2013 / 104
3. SIGNIFICANT DIFFERENCES AMONG INTERNATIONAL ACCOUNTING STANDARD (IAS), INDIAN GAAP AND ALL OF US GAAP ALL OF US GAAP AMERICAN INDIAN GAAP Parts of IAS Difference (1) Economic statements...