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. y QUESTIONS 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 I am using open ended and close ended

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.

Sign up to vote on this title
UsefulNot useful