Case study on introduction and implementation of International Financial Reporting Standards (IFRS) in India

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ACKNOWLEDGEMENT'

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

In this study we explore the IFRS standares and asses whether they can be implemnted in India. This papers discusses the challenges of the implementation and the benefits it brings. This paper will follow themix methodology and will follow both the quantitative and qualitative methods. Further more this study includes a detailed survey which will be discussed in the 4th chapter.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION7

Problem statement8

Aim and Objectives8

Significance of the study9

The significance of accounting measures10

International Financial Reporting Standards11

CHAPTER 2: LITERATURE REVIEW14

History of financial reporting standards14

Standard setters15

The International Accounting Standards Committee (IASC)15

The International Accounting Standards Board (IASB)15

Key factors of IFRS16

Rules-based versus principle-based16

Fair value17

Convergence of rules between countries18

Opinions about IFRS19

Prior research about the adoption of IFRS20

Marching Ahead - India Inc. Closer to Convergence with IFRS27

Overview of Convergence across Countries28

Benefits of Achieving Convergence with IFRS29

Implementation Phase in India30

IFRS Adoption Procedure in India30

Utility to India to IFRS32

Improving access32

Easier international Comparability33

Easy traverse border listing33

Improving the quality34

Elimination of multiple reports34

Lessons from the financial crisis the modification of standards for financial instruments35

FRS Convergence - implementation in the Indian context and challenges36

Challenges for banks and nonbank economic businesses37

Major non-Accounting matters38

CHAPTER 3: METHODOLOGY44

Overview of Qualitative and Quantitative Research Approaches44

Overview of the Mixed Method Research Approach45

Research Method and Design Appropriateness46

Benefits and Disadvantages of Mixed Method47

Informed Consent48

Confidentiality48

Validity49

Reliability (If using Questionnaire)50

Data Analysis51

Qualitative Data Analysis51

Quantitative Data Analysis51

CHAPTER 4: DISCUSSION AND ANALYSIS53

Concluding Remarks68

CHAPTER 5: CONCLUSION70

Challenges in the Process of Adoption of IFRS in India70

Training70

Amendments to existing laws in India,71

Conclusion72

REFERENCES74

APPENDIX83

Questionnaire83

CHAPTER 1: INTRODUCTION

In the last ten years has glimpsed some alterations in enterprise round the world. The method of financial reporting and enterprise skilled large changes. It started in 2005 when the EU made it mandatory for companies recorded comprise the consolidated financial statements in agreement with International Financial Reporting Standards (IFRS) from 1 January 2005. Before that, from the end of 1990, companies in some European and Asian nations were permitted to use International Financial Reporting Standards (IFRS), I as a replacement for their nationwide accounting Standards. However, IFRS have been taken up lawfully for the first time in 2005, the European Union. In other nations with evolved capital markets taken up or are in the method of adoption of IFRS for describing purposes. Many nations are restoring their nationwide Standards with IFRS, while other ones have taken up this set about in the first reconsider of IFRS, confirm it encounters the financial, political and communal acceptance of IFRS verbatim or with secondary modifications (Davies, 2007).

India, in 2007, broadcast that it completely adopted IFRS in ...