Journal of Commerce and Accounting Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Impact of IND as on Accounting Numbers: An Analytical Study in Context of Indian Companies


Affiliations
1 Research Fellow, Department of Accountancy and Business Statistics, Mohanlal Sukhadia University, Udaipur, Rajasthan, India
2 Post Doctoral Fellow, Department of Accountancy and Business Statistics, Mohanlal Sukhadia University, Udaipur, Rajasthan, India
3 Formerly Professor & Head, Department of Accountancy and Business Statistics, Mohanlal Sukhadia University, Udaipur, Rajasthan, India
     

   Subscribe/Renew Journal


This paper tries to examine the impact of Ind AS on some accounting numbers and also to examine if there is any statistically significant difference among the prevailing opinions regarding Ind AS adoption in India. We took the top 45 companies from the Bombay Stock Exchange, according to their market capitalisation, and excluded banking, non-banking financial companies, and insurance companies due to non-availability of data, and made a questionnaire for opinion survey. We applied paired t-test on the secondary data and a chi-square test on the primary data. No statistically significant difference was found in the accounting numbers after the adoption of Ind AS. Results also revealed that there is homogeneity in the opinion of respondents with different work experiences and occupations regarding the impact of Ind AS on accounting numbers. Indian companies should provide more disclosure in their financial statements, so that the informational content of accounting numbers can be increased.

Keywords

IND AS, IFRS, Accounting Numbers, Profitability Ratios, Liquidity Ratios.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Alsaqqa, I. (2012). The impact of adopting IFRS on profitability and stock performance in listed firms at Abu Dhabi and Dubai stock exchanges.

  • Ali, L., & Dhiman, S. (2019). The impact of credit risk management on profitability of public sector commercial banks in India. Journal of Commerce & Accounting Research, 8(2), 86-92.

  • Bhargava, V., & Shikha, D. (2013). The impact of international financial reporting standard on financial statements and ratios. The International Journal of Management, 2(2) 1-15.

  • Bajaj, N., Singh, H., & Shirur, S. (2019). Adoption of International Financial Reporting Standards (IFRS) in the accounting curriculum in India. International Journal of Innovative Technology and Exploring Engineering (IJITEE), 8(7S2), 208-218.

  • Chado, A. (2017). IFRS adoption and value relevancy of accounting information: A study of listed firms in Nigeria.

  • Chiha, H., Trabelsi, N. S., & Hamza, S. (2013). The effect of IFRS on earning quality in a European stock market: Evidence from France. Interdisciplinary Journal of Research in Business, 2(12), 35-47.

  • Dhankar, R. S., Chaklader, B., & Gupta, A. (2018). Application of IFRS/IND AS in Indian public sector banks: An analysis. Universal Journal of Accounting and Finance, 6(2), 29-46. doi:10.13189/ujaf.2018.060202

  • Gencia, A., & Mates, D. (2017). Financial ratio analysis – A comparative setting on accounting data and distortions caused by the IFRS convergence process. Revista Economica, 69(2), 87-97.

  • Ghosh, P. (2019). Impact of IFRS convergence in India: An evidence from the first-time adoption of Indian accounting standards. Accounting and Finance Research, 8(1), 157-173. doi:10.5403/afr.v8nlp157

  • Haruna, D., & Emmanuel, K. A. (2018). IFRS adoption and shareholder’s wealth of deposit money banks in Nigeria. International Journal of Accounting & Finance, 7(2), 16-30.

  • Lin, S., Riccardi, W., & Wang, C. (2013). Relative benefit of adoption of IFRS and convergence between IFRS and U.S. GAAP: Evidence from Germany.

  • Liu, C., Yao, L. J., Hu, N., & Liu, L. (2011). The impact of IFRS on accounting quality in a regulated market: An empirical study of China. Journal of Accounting, Auditing & Finance, 26(4), 659-676. doi:10.1177/0148558X 11409164

  • Lourenco, I., & Branco, M. C. (2015). Main consequences of IFRS adoption: Analysis of existing literature and suggestions for future research. R. Cont. Fin. doi:10.1590/1808- 057x201500090 ISSN 1808-057X

  • Mohan Kumar, M. S., Vellakottil, V. J., & Joseph, S. (2017). The impact of IFRS on financial statements with special reference to Wipro Ltd. International Journal of Research in Commerce, IT and Management, 7(2), 15-21.

  • Manoj Kumara, N. V., Sowmya Erappa, K., & Abhilasha, N. (2016). IND-AS: Evolution or Revolution. VVPGC. ISBN: 978-93-5254-333-5.

  • Melwani, R. (2019). Impact of internal financial determinants on financial performance. Journal of Commerce & Accounting Research, 8(3), 75-85.

  • Muller, V. O. (2014). The impact of IFRS adoption on the quality of consolidated financial reporting. ProcediaSocial and Behavioral Science, 109, 976-982. doi: 10.1016/j.sbspro.2013.12.574

  • Muniraju, M., & Ganesh, S. R. (2016). A study on the impact of international financial reporting standards convergence on Indian corporate sector. IOSR Journal of Business and Management, 18(4), 34-41. doi:10.9790/487X-180405344

  • Janani, N., & Padmasani (2016). IGAAP and IFRS: Testing the difference in key financial ratios. International Journal of Research in Finance and Marketing, 6(5), 22-27.

  • Paulinus, E. C., Ethelbert, A. A., & Jones, A. S. (2018). International financial reporting standards (IFRS) and firm profitability. International Journal of Multidisciplinary Research and Development, 5(10), 19-27.

  • Rai, A., & Prakash, A. (2019). A comparative study on financial performance of power generating companies in India. Journal of Commerce & Accounting Research, 8(4), 12-27.

  • Salewski, M. (2013). Accounting quality under IFRS – Essays on value relevance, earnings management, and disclosure quality.

  • Sardar, S., Shinde, V., & Singh, S. (2018). Journey of Indian corporates from local to international accounting standard: An impact analysis. International Journal of Finance and Accounting, 7(6), 161-185. doi:10.5923/j. ijfa.20180706.01

  • Sharadha, N., & Manickavasagam, V. (2018). IND AS: India’s accounting standards converged with the IFRS – IND AS adoption and applicability for Indian companies. International Journal of Trend in Scientific Research and Development, 2(2), 628-632.

  • Sharma, M. B., & Gupta, P. (n.d.). A study on challenges in implementation of Ind AS in India. International Journal of Research in Engineering, IT & Social Sciences.

  • Shukla, S. (2015). An empirical study of the impact of adoption of IFRS on the financial activities of companies in India. IJRSI, 3(1), 323-329.

  • Simlai, D., & Guha, M. (2019). Financial stability, profitability and growth analysis: A study on select Indian automobile companies. Journal of Commerce & Accounting Research, 8(1), 21-34.

  • Soni, R. (2018). Transformation of IND GAAP to IND AS (Based on IFRS) it’s impact on financial statements. Multidisciplinary Journal, 2(1), 20-32.

  • Surinati, M. (2015). The impact of IFRS convergence on accounting information quality and its influence on information asymmetry in Indonesia stock exchange. Research Journal of Finance and Accounting, 6(10), 206-219.

  • Stancheva-Todorova, E., & Velinova-Sokolova, N. (2019). IFRS 16 leases and its impact on company’s financial reporting, financial ratios, and performance metrics. Economic Alternatives, no. (1), 44-62.

  • Zeghal, D., & Lahmar, Z. (2016). The impact of IFRS adoption on accounting conservatism in the European union. International Journal of Accounting and Financial Reporting, 6(1), 127-160. doi:105296/ijafr.v6il.9581


Abstract Views: 324

PDF Views: 0




  • Impact of IND as on Accounting Numbers: An Analytical Study in Context of Indian Companies

Abstract Views: 324  |  PDF Views: 0

Authors

Antima Sharma
Research Fellow, Department of Accountancy and Business Statistics, Mohanlal Sukhadia University, Udaipur, Rajasthan, India
Nisha Kalra
Post Doctoral Fellow, Department of Accountancy and Business Statistics, Mohanlal Sukhadia University, Udaipur, Rajasthan, India
G. Soral
Formerly Professor & Head, Department of Accountancy and Business Statistics, Mohanlal Sukhadia University, Udaipur, Rajasthan, India

Abstract


This paper tries to examine the impact of Ind AS on some accounting numbers and also to examine if there is any statistically significant difference among the prevailing opinions regarding Ind AS adoption in India. We took the top 45 companies from the Bombay Stock Exchange, according to their market capitalisation, and excluded banking, non-banking financial companies, and insurance companies due to non-availability of data, and made a questionnaire for opinion survey. We applied paired t-test on the secondary data and a chi-square test on the primary data. No statistically significant difference was found in the accounting numbers after the adoption of Ind AS. Results also revealed that there is homogeneity in the opinion of respondents with different work experiences and occupations regarding the impact of Ind AS on accounting numbers. Indian companies should provide more disclosure in their financial statements, so that the informational content of accounting numbers can be increased.

Keywords


IND AS, IFRS, Accounting Numbers, Profitability Ratios, Liquidity Ratios.

References