Review of Professional Management- A Journal of New Delhi Institute of Management

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Adaption of IFRS and its Impact on Qualitative Factors of Financial Statement: Evidence from India


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1 Institute of Management Study, Kolkata, India
 

Aspirations of Indian Companies to turn into global players in this era necessitated introduction of International Financial Reporting standard (IFRS) for transparency, accuracy, comparability of financial reporting all over the world. Adaption of IFRS improves understanding of the financial reporting of the company which encourages international capital inflows, introduces similar accounting standard for all subsidiaries across the globe, reduces fraud, risks for the investors and this harmonizes language of reporting both in the external and internal context. Indian companies are also raising their capital globally for diversification. Cross-border mergers, investments or divestments have been occurring among the corporate. In view of these advantages, GOI has been introducing International Financial Reporting standard in a phased manner. Yet, it beneficial for Indian companies to introduce this standard voluntarily.

This paper aims to make a comparison between IFRS and IGAAP and evaluate the impact of IFRS on the qualitative factors of the financial report. For the purpose of Analysis, a close ended questionnaire has been used and for testing hypotheses, one sample t test with p values are considered.


Keywords

IFRS, IGAAP, Qualitative Factors, one Sample T Test, P Value.
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  • Adaption of IFRS and its Impact on Qualitative Factors of Financial Statement: Evidence from India

Abstract Views: 534  |  PDF Views: 175

Authors

Surajit Das
Institute of Management Study, Kolkata, India

Abstract


Aspirations of Indian Companies to turn into global players in this era necessitated introduction of International Financial Reporting standard (IFRS) for transparency, accuracy, comparability of financial reporting all over the world. Adaption of IFRS improves understanding of the financial reporting of the company which encourages international capital inflows, introduces similar accounting standard for all subsidiaries across the globe, reduces fraud, risks for the investors and this harmonizes language of reporting both in the external and internal context. Indian companies are also raising their capital globally for diversification. Cross-border mergers, investments or divestments have been occurring among the corporate. In view of these advantages, GOI has been introducing International Financial Reporting standard in a phased manner. Yet, it beneficial for Indian companies to introduce this standard voluntarily.

This paper aims to make a comparison between IFRS and IGAAP and evaluate the impact of IFRS on the qualitative factors of the financial report. For the purpose of Analysis, a close ended questionnaire has been used and for testing hypotheses, one sample t test with p values are considered.


Keywords


IFRS, IGAAP, Qualitative Factors, one Sample T Test, P Value.

References





DOI: https://doi.org/10.20968/rpm%2F2016%2Fv14%2Fi1%2F109394