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IJSTR >> Volume 9 - Issue 1, January 2020 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

A Study Assessing The Impact Of Voluntary Adoption Of IFRS On The Comparability And Relevance Of Financial Information Of Listed Indian Companies.

[Full Text]



Dr.D.D.Bedia, Kshema Shrivastava



Impact, International Financial Reporting Standards (IFRS), Indian GAAP, Financial Reporting, India.



As per the notification G.S.R 111(E) dated 16 February 2015 of the Ministry of Corporate Affairs of India, the Indian listed companies are required to comply with the IFRS converged Ind AS for the preparation of their financial statements and audit from the accounting periods commencing on or after 1st April 2016. However, few internationally listed companies were voluntarily reporting their financial statements as per IFRS along with the financial statements prepared as per Indian Generally Accepted Accounting Principles (IGAAP) before April 1, 2016. The researchers analysed the impact of this voluntary reporting of financial statements as per IFRS on the comparability and relevance of financial information in India. It was also analysed whether the value relevance of financial information for the investors is higher under IFRS than that of the information provided in financial statements prepared as per the Indian GAAP when they have to make decisions in the capital markets. The result of the research revealed a significant quantitative impact of IFRS on some of the selected accounting figures and ratios. It was also observed that IFRS had a positive effect on the value relevance of financial reporting.



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