PERCEPTIVE OBSERVATIONS ON THE BENEFITS

AND CHALLENGES OF INTERNATIONAL FINANCIAL

REPORTING STANDARDS IN THE INDIAN BANKING
SECTOR

Source : International journal of creative research thoughts

Published : 2020 January
By research scholar : Sonika Suman
INTRODUCTION
• International Financial Reporting Standards (IFRS) are a set of accounting rules for the
financial statements of public companies that are intended to make them consistent,
transparent, and easily comparable around the world.
• Every country is adopting IFRS including India for unique accounting system

IDENTIFY GAPS
• IASB (International Accounting Standard Board) is developed and approves these standards.
• According to a specific national accounting standards , nuances of which are known only
nationally, may not be useful to users due to the high level of globalization of businesses
and financial markets.
• Lack of training facilities and academic programs on IFRS in India.
LITERATURE REVIEW
• Sporadic efforts to recognize the challenges of implementation of IFRS with respect to
communication, translation and interpretation of standards from the IASB.
• Beginning with the basic background knowledge till the trends towards global accounting
standards
• education, staffing, cost, training and IT infrastructure were observed during the past
decade.
• Inconsistency of existing laws and regulatory frameworks of accounting in Libya with the
recent development of accounting profession and the weakness of the professional
accounting body
VARIABLES
• US needs to be mandatory to follow IFRS and
• GAAP
• Various cost reduction efforts due to single unified accounting system
• Cultural context was pointed out prominently

RESEARCH DESIGN
Descriptive and Quazi -Experimental
• Descriptive – It distributes one variable to other example International Financial Reporting
Standards is approved by IASB (International Accounting Standard Board)
• Quazi experimental design – Real experiments
In Bangladesh, it is expected to reduce information asymmetry and make information more
comparable

SCOPE OF IFRS
• Increasingly, companies in India are adopting and choosing to recruit candidates with
experience and knowledge in IFRS, apart from usual accounting and finance degrees. And IFRS
professionals enjoy high demand in India.
• The demand is higher because there is a lesser number of IFRS professionals in India and
moreover, experts can offer consultancy services to companies adopting IFRS standards and
need assistance with migrating older accounts to newer accounting structures.
•The introduction of IFRS in the Indian markets created a lot of employment opportunities.