Preview

Ifrs

Powerful Essays
Open Document
Open Document
678 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ifrs
IFRS in India...

A
Research Report
Submitted for the partial fulfillment of MBA (Sem – III & IV) 2012-13 as a subject
Management Research Project MRP on A Study of the Need &
Adoption of IFRS in India.
Submitted to:

Submitted By

Professor Hardik Shah

Mr. Mukeshkumar Rajmal Jain

&

Roll No. 1414

Dr. Naresh Patel

Center for Management Studies,
Dharmsinh Desai University, Nadiad.

Contents
Page
1. Introduction
Indian Accounting Standards

1

Need for Universal GAAP

4

2. Overview
What is IFRS?

6

Why IFRS?

6

Benefits of Adopting IFRS

7

IFRS Challenges

8

List of IFRS

9

List of IAS

10

3. IFRS and Indian GAAP

12

4. IFRS -A Comparison with Indian GAAP (Detail)

15

Agenda for Discussion

15

General Approach

15

Accounting Policy Change

16

Consolidation Policy

17

Provisions & Contingencies

19

Property, Plant and Equipments

21

Leases

23

Financial Instruments

24

Taxes

26

Business Combinations

28

Areas involving “Choices”

30

5. Presentation / Disclosures Differences

31

Financial Statements

32

Cash flow Statements

34

Events after Balance Sheet

36

Segment Reporting

37

Related Party Transactions

38

Discounted Operations

39

6. Literature Review

40

Global Context

40

Indian Context

43

RESEARCH METHODOLOGY

RATIONALE FOR STUDY:
International Financial Reporting Standards (IFRS) is gaining momentum throughout the world as a single, consistent accounting framework and is positioned to become the pre dominant GAAP in the near future. More than 100 countries have moved to, or base their local standards on IFRS.
Indian Accounting Standards have not kept pace with changes in IFRS.
There are significant differences between IFRS and I-GAAP, because
Indian standards remain sensitive to the legal and economic environment.
The use of different accounting frameworks

You May Also Find These Documents Helpful

  • Powerful Essays

    ACC 290 IFRS v. GAAP

    • 1158 Words
    • 4 Pages

    Although the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) have a lot of similar guidelines and expectations, they also differ in many ways. The IFRS employs more of a “principles based” accounting standards whereas GAAP utilizes more of a “rules based” approach. Even though there are differences between terminology, revenue recognition, gains and/or losses, and statement presentation, both standards do follow the same conceptual guidelines. With the Sarbanes-Oxley Act (SOX) of 2002, the standards expected of foreign countries are significantly less than those that reside as publically owned companies in the U.S.…

    • 1158 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    The globalization of markets over the past 50 years has led to the demand for increasingly comparable financial statements across countries. In response to this demand, the International Accounting Standards Board (IASB) was formed with the purpose of developing a set of high quality global accounting standards. Although a majority of developed markets have adopted the international standards, the United States has not. One reason for the delay in adoption is that many of the standards are very similar. However, there are also several key differences between the two. Presently, the United States Financial Accounting Standards Board (FASB) and the IASB have committed to work together to develop future standards jointly (FASB, 2011). Nonetheless, the key differences will have to be resolved and many believe the FASB will ultimately adopt international standards completely. This report seeks to discuss the US situation on the adoption of IFRS (International Financial Reporting Standards, as prescribed by IASB) and the possible effect of adoption on non-public businesses and the public?…

    • 1356 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Case 11-4 Functional Currency Determination — IFRS 2009: Sparkle Company is a Nigerian diamond mining company. (Nigerian currency is the Naira (NGN).) Sparkle is a joint venture, 50 percent owned by Shine and 50 percent owned by Brighten. Both Shine and Brighten are U.S.-based companies with US$ functional currency. This year, Sparkle had several transactions with its joint venture owners and outside parties. The details of Sparkle’s transactions are as follows: Loans    $1 million from Brighten. $1 million from Shine. NGN 300 million from a local bank.…

    • 435 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Comparing IFRS to GAAP

    • 889 Words
    • 3 Pages

    In the Accounting industry, there are various principles and guidelines by which financial accountants, analysts, and organizations need to abide by. The International Accounting Standards Board (IASB) issues standards (IFRS) that have been adopted by the United States and several countries outside of the U.S. (Kimmel, Weygandt & Kieso, 2010). The IFRS along with Generally Accepted Accounting Principles (GAAP), professionals in the accounting industry use these guidelines as a baseline on which accounting practices are built upon. These standards are governed by the Securities and Exchange Commission (SEC) which ultimately oversees U.S. financial markets and accounting standard-setting bodies. Moving forward, the elements of IFRS and GAAP will be discussed to illustrate the similarities and differences and how it relates to Accounting and used in business practice.…

    • 889 Words
    • 3 Pages
    Good Essays
  • Best Essays

    U.S. GAAP vs IFRS

    • 3430 Words
    • 14 Pages

    The United States is coarsely going through a big dilemma. It is deciding whether to adopt International Financial Reporting Standards (IFRS), or to stay with the current U.S Generally Accepted Accounting Principles (GAAP). Since this is such a serious decision, now would be an opportune time to take a look at what the advantages and disadvantages would be of switching to the new way of financial reporting, and doing so, shows the beliefs of the costs being too high to adopt a new set of reporting standards. People who support switching from GAAP to IFRS argue that IFRS will offer a general reporting language and consistent financial reporting for companies with global operations to make financial reporting more meaningful across borders. And. Supporters also believe that one common reporting system will cut costs for companies and make it easier for investors to compare the financial statements of companies from different countries (Diamond and Herrmann, August 2008). From the problem that the switch to IFRS would be exceedingly costly, to the fact that IFRS leaves more room for interpretation and lacks bright line rules, I will discuss all the reasons why switching to IFRS soon would not be the right decision for the U.S.…

    • 3430 Words
    • 14 Pages
    Best Essays
  • Good Essays

    IRCA

    • 385 Words
    • 2 Pages

    Fact Summary: In July 2002 Mayor James apparently out of the blue ordered that all fire houses in the Newark Fire Department be integrated to improve morale and to honor a court order to make the Fire Department the mirror of the City of Newark. Wallace (the fire chief) proposed an alternative transfer list that would achieve 100% diversity. Thirty-four firefighters were involuntarily transferred or denied requests to transfer due to the new policy, together with the Newark Firefighters Union and the Newark Fire Officers Union, brought action against the City of Newark.…

    • 385 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    ibus

    • 5297 Words
    • 22 Pages

    Question 2 Marks: 2 The Heckscher-Ohlin theory ________. Choose one answer. a. maintains that a country's wealth is measured by its holdings of gold and silver b. states that a country should produce and export those goods for which it is relatively more productive than other countries and import those goods for which other countries are relatively more productive than it is c. suggests that a country should export those goods for which it is more productive than other countries, and trade for those goods for which other countries are more productive d. suggests that a country will have a comparative advantage in producing products that intensively use resources it has in abundance e. argues that most trade in manufactured goods should be between countries with similar per capita incomes Correct Marks for this submission: 2/2.…

    • 5297 Words
    • 22 Pages
    Powerful Essays
  • Good Essays

    Intasc

    • 3417 Words
    • 14 Pages

    The teacher appreciates multiple perspectives and conveys to learners how knowledge is developed from the vantage point of the knower.…

    • 3417 Words
    • 14 Pages
    Good Essays
  • Good Essays

    Idars

    • 4985 Words
    • 20 Pages

    Gartner RAS Core Research Note G00140780, Kenneth Chin, Toby Bell, 27 June 2006, R1997 06262007…

    • 4985 Words
    • 20 Pages
    Good Essays
  • Better Essays

    fifss

    • 986 Words
    • 4 Pages

    Nationalism is a belief, creed or political ideology that involves an individual identifying with, or becoming attached to, one 's nation. Nationalism involves national identity, by contrast with the related construct of patriotism, which involves the social conditioning and personal behaviors that support a state 's decisions and actions. It is the emotional attachment of citizens with the state that propels them to fight against foreign rule and domination as well as attitudes that could negatively affect the development of the state. In another sense, nationalism is the recognition by people sharing the same or similar territorial boundaries, that they together belong to a nation with common history, goal and interests, and they need to free themselves from any form of socio-economic or political domination by other nations. The concept embraces both this awareness and the activities towards obtaining and maintaining independence. Nationalism in West Africa focused on the eradication of colonialism. It took the form of attacks on the British colonial policies through newspapers, petitions, rots and strikes. In addition, constitutional conferences were organized to fashion out acceptable constitutions for the people. Some of the factors that aided Nationalistic movements in West Africa are as follows:…

    • 986 Words
    • 4 Pages
    Better Essays
  • Better Essays

    Infossys

    • 1402 Words
    • 9 Pages

    honesty, and courtesy towards our clients, employees, vendors and society at large” (Infosys: A company par excellence). The company began in India, a developing country in…

    • 1402 Words
    • 9 Pages
    Better Essays
  • Good Essays

    South Africa and IFRS

    • 765 Words
    • 3 Pages

    Bhattacharjee, S. (2009). Problems of Adoptoins and Application of Internal FInancial Reporting Standards. International Journal of Business and Management, Vol. 4, N.12.…

    • 765 Words
    • 3 Pages
    Good Essays
  • Good Essays

    ifyi

    • 522 Words
    • 3 Pages

    xfnbfghnfgty, examined two linked data sets collected 19 years apart on 12,000 people who had attended elite colleges and universities in the 1970s--one drawn in 1976 when they were freshmen, the other in 1995.…

    • 522 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Ilir

    • 1200 Words
    • 5 Pages

    The coffee plant is a perennial crop which begins to rise after four years of being planted . the life of the coffee bean can be more than 40 years and its production is given once a year during what is called coffee cycle. Coffee , one of the most traded agricultural commodities in the world , grows in large proportion in areas such as : Latin America , Asia and Africa .The warm weather in these parts of the world makes it essay to plant and grow. However, moisture in these territories stimulates the appearance of rust which is a fungus that infects coffee leaf. As a result of that infection the damaging consequences for the coffee crops vary from decreased production of grain to plant death. Similarly, the major effects on producers and coffee planters are large economic losses ,complete eradication of crops ,and loss of most of the production. Thus , leaf rust fungus or “roya” is nowadays not only the main concern of the medium and small coffee planters but also of the largest grain traders and major producers of coffee.(Based on my personal knowledge ).…

    • 1200 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    ICT IGSCE

    • 2052 Words
    • 35 Pages

    For each question, choose an answer A, B, C or D and put a cross in the box .…

    • 2052 Words
    • 35 Pages
    Powerful Essays