International Journal of Applied Research
Vol. 2, Issue 12, Part F (2016)
IFRS in India: Over view and impact
Globalization has changed the close economy into open economy. Now a day’s national economy is integrating in international market with other countries by spreading their trade and business outside their own country. Foreign Direct Investment, Foreign Institutional Investors, Mergers and Acquisition, Franchising and Business Outsourcing are some example of international transaction in global business. For the integrity of different country’s business together in the word market it was necessary for the business to adopt a common set of accounting standard since accounting is the language of a business. It is well known that companies all over the world have become more and more internationally oriented during last few decades. They create fusion, make investment, conduct trade and co-operate over country borders. International financial reporting standards (IFRS) are becoming the global language of business with over 40% of the world having moved to IFRS in the past few years. By 2018, it is expected that all companies in major markets will be using IFRS. The globalization creates an increase need for communication in the terms of language, awareness of culture differences and domestic customs. More over the financial communication such as accounting and financial results are just as important for business leaders and employees to master. An upcoming economy on world economic map, India too, decided to converge to IFRS. In India ICAI has decided to adopt the IFRS by April 2011. This paper discusses the IFRS adoption procedure in India and the utility for India in adopting IFRS and its impact on India.
How to cite this article:
Dr. Ashok Kumar Gupta. IFRS in India: Over view and impact. Int J Appl Res 2016;2(12):391-393.