Opportunities and Challenges in the convergence of IFRS in India

Abstract

As the trade in India is continuously increasing and reaching to outside India. the compliance and reporting necessities move too. It is hard to present the financial Reports of an organisation in accordance with the requirement of that country where the company exist. International Financial Reporting Standards (IFRS) set universal rules to ensure integrity, consistency and standardization of financial results throughout the world. The International Accounting Standards Board (IASB) has developed and implemented IFRS. These indicates that businesses must keep and report their Financial transactions and other Monetary events with financial impact. In 2005 EU Formally adopted IFRS. Later on many countries adopted or converged with IFRS. India too started converging with IFRS. This paper will pinpoint the problems faced by Indian Companies while converging to IFRS.