SYNOPSIS OF MAJOR PROJECT

ON
“Impact Of IFRS On Current Reporting Practices Of
Indian Companies”

(Perception Of Professionals)

SUBMITTED TO

DR. AMANDEEP SINGH (LEC.) SUBMIITED BY

SANDEEP KAUR

ROLL NO.2259

MBA -II

PUNJABI UNIVERSITY SCHOOL OF BUSINESS STUDIES

GURU KASHA CAMPUS
TALWANDI SABO
INTRODUCTION

International Financial Reporting Standards (IFRS) is a set of accounting standards,

developed by the International Accounting Standards Board (IASB) that is becoming the
global standard for the preparation of public company financial statements. IFRS is a
principles-based accounting system, meaning it is objective-oriented allowing for more
presentation freedom.

OBJECTIVES OF IFRS

 To develop, in the public interest, a single set of high quality ,understandable and
enforceable global accounting standards that require high quality, transparents and
comparable information in financial statements and other financial reporting to
help participants in the world's capital markets and other users make economic
decisions;
 To promote the use and rigorous application of those standards; in fulfilling the
objectives associated with (1) and (2),
 To take account of, as appropriate, the special needs of small and medium-sized
entities and emerging economies.
 To bring about convergence of national accounting standards and International
Accounting standards and IFRS to high quality solutions

NEED FOR CONVERGENCE WITH IFRSs

In the present era of globalization and liberalization, the World has become an economic
village. The globalization of the business world and the attendant structures and the
regulations, which support it, as well as the development of e-commerce make it
imperative to have a single globally accepted financial reporting system.
ADOPTION OF IFRS IN INDIA
In India, the ICAI has issued a document titled "Concept paper of convergence with IFRS in
India" to evaluate the need for Indian GAAP to change to IFRS. In the paper, the ICAI notes
that as the world globalizes, it has become imperative for India to make a formal strategy
for convergence with IFRS with the objective of harmonize with globally accepted
accounting standards. In view of the difficulties, which may be perceived during adopting
IFRS, the ICAI has decided that IFRS should be adopted for public interest entities from the
accounting periods commencing on or after1 April 2011.

BENEFITS OF IFRS

 By adopting IFRS, you would be adopting a "global financial reporting “basis that
will enable your company to be understood in a global marketplace.

 A consistent financial reporting basis would allow a multinational company to apply

common accounting standards with its subsidiaries worldwide, which would
improve internal communications, quality of reporting and group decision-making.

 In increasingly competitive markets, IFRS allows a company to benchmark itself

against its peers throughout the world, and allows investors and others to compare
the company's performance with competitors globally.

 In addition, companies would get access to number of capital markets across the
globe.
DISADVANTAGES OF IFRS

 Despite a general consensus of the inevitability of the global acceptance of IFRS,

many people also believe something will be lost with full acceptance of IFRS.

 Further certain issuers without significant customers or may resist IFRS because
they may not have a market incentive to prepare IFRS financial statements.

 Some other issuers may have to stick with existing GAAP because it is required for
filings with other regulators and authorities, thus resulting in extra costs than
currently incurred by following only existing GAAP.

 Another concern is that many countries that claim to be converting to international

standards may never get to 100 percent compliance.

IMPACT ON STAKEHOLDERS

 ECONOMY
 INDUSTRY
 INVESTORS
 ACCOUNTING PROFESSIONALS
REVIEW OF LITERATURE

1) “INDIAN ACCOUNTING STANDARDS AND IFRS” research is done by ‘N D Gupta, FCA

and Naveen Gupta, FCA’.

 The research serves as a practical guide to various intricate accounting issues on

generally accepted accounting principles (GAAP) followed in India.
 The research highlights a comparative and analytical study on accounting standards.
 The depth and width of coverage of different accounting standards actually
provides a total solution on accounting standards reference for any accounting
professional.

2) “CONVERGENCE TO IFRS FROM INDIAN GAAP, IMPACT AND CHALLENGES” research

is done by ‘Noman Agashiwala’ the research serves:

 The approach for achieving convergence with IFRS.

 Lay down a roadmap for achieving convergence with IFRS with a view to make
Indian IFRS compliant.
 Study the impact and challenges India will face with IFRS.

3) ‘Keith Parker Conference Held Media Ratana Dubai’ held the study:

 The latest development in growing worldwide use of IFRS.

 Real world challenges to applying the IFRS and strategies to overcome them.
 Detail practical example on the implement and application of accounting and finance
reporting concept.
NEED OF STUDY

International Financial Reporting Standards is a set of accounting standards developed

by International Accounting Standards Board (IABS). That is being the global standards
for the preparation for public companies financial statements. So it is implemented in India
from April, 2011.when India economy is robust and vibrant with GDP growth of around
8%. It is become imperative for Indian companies to go in tune with global standards. A
comparative study of different standard with real time Indian case studies make the
reading not education but also very interesting
It is new topic. So it is very necessary to do study that topic to get familiarity with it and
also to know the impact on Indian companies’ reporting practices and stakeholders and to
know the benefits and challenges of IFRS.

OBJECTIVES OF STUDY
 To know the change that will come after implementation of IFRS in Indian
companies.
 To know the perception of professionals regarding IFRS.
 Impact on the stakeholders after the conception of IFRS.

RESEARCH METHODOLOGY

 Identification of the problem - problem is a impact of IFRS on current

reporting practices of Indian companies. And to know the perception of
professionals.

 Research design- in this project I am using the three types of research design.

 Exploratory research –to collect the information about IFRS is done

by exploratory research.
  Descriptive research –To know the perception of professionals about
IFRS that is second object of study is done by descriptive research.
 Causal research – it is cause and effect research. To know the impact
of IFRS on Indian companies is done by causal research.

 DATA SOURCE
 Primary data – second object of study to know the perception of
professionals is covered by primary data.
 QUESTIONS –I am using open – ended and close – ended
question.
Both types of questions are used in this research. Questions are structured and
proper analysis of the dada is done
 Secondary data – first object to know the changes that will come after
implementation of IFRS in Indian companies. and third question impact on
the stakeholders after the conception of IFRS is covered by secondary data.

 ANALYSIS AND INTERPRETATION

The data will be collected by questionnaire then analyzed, interpreted and appropriate
tools and techniques would be used to interprets the data.

 SAMPLE DESIGN:
 Population – for the convenient of research data would be collected through
out the Punjab.
 Sample unit – industrialists, charted accountants, economists, professors.
 Simple size – 60s.