IFRS CHALLENGES

World Journal of Social Sciences
Vol. 1. No. 1. March 2011. Pp.125 - 136

IFRS Implementation in India: Opportunities and Challenges
Pawan Jain1
One of the foremost requirements to operate a Business successfully is to have a good financial reporting system in place. Keeping this in mind,
Accounting Professionals and Accounting Bodies across the globe, during last decade, had tried to put a financial reporting system in place which is harmonized, robust and have extensive applicability. IASB
(formerly IASC) came out with IFRS which were adopted formally by members of European Union in 2005. In subsequent years, many other countries either adopted IFRS or converged to IFRS. An upcoming economy on world economic map, India, too, decided to converge to
IFRS. This study tries to analyze the information available on IFRS adoption process in India. It also discusses the IFRS adoption procedure in India and the utility for India in adopting IFRS. The paper discuss the problems faced by the stakeholders (Regulators, Accountants, Firms etc) in the process of adoption of IFRS in India. In conclusion part, Paper brings out the ways through which these problems can be addressed.

Field of Study: Accounting, International Financial Reporting Standards (IFRS)

1. Introduction
Last decade has observed various changes of doing business across the world. The process of financial reporting of business activities also underwent a great change. This started in 2005 when European Union made it mandatory for publicly traded companies to present consolidated financial statements in conformity with International Financial
Reporting Standards (IFRS) starting from January 01, 2005. Earlier, since the late
1990s, companies in some European and Asian countries were allowed to use
International Accounting Standards (IAS) i as a substitute for their respective domestic
Accounting Standards. But IFRSs were adopted legally first time in 2005 by European
Union.

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