Indian Accounting Standards and IFRS
IFRS – One World One Accounting
Introduction to IFRS
Currently, more than 100 countries requires or adopt IFRS and it is expected that by
2012, more than 150 countries will adopt IFRS. India has also taken the step towards convergence of Indian Accounting Standards with IFRS. This article details the need for harmonization of local GAAP with IFRS, challenges for Corporate India etc.
1.
Importance of Accounting Standards
2.
Accounting Standards Across the world
3.
Need of Harmonization
4.
IFRS Applicability in India
5.
Challenges for Corporate India
6.
Conclusion
1. Importance of Accounting Standards
Accounting Standards are the authoritative documents issued by recognized accountancy bodies relating to various aspects of recognition, measurement and disclosure of accounting transactions and events. These are stated to be norms of accounting policies and practices by way of codes or guidelines to direct as to how the items, which go to make up the financial statements should be dealt with in accounts and presented in the annual accounts. The aim of setting standards is to bring about uniformity in financial reporting and to ensure consistency and comparability in the data published by enterprises.
A financial reporting system supported by strong governance, high quality standards, and sound regulatory frameworks is key to economic development. High quality standards of financial reporting, auditing, and ethics underpin the trust that investors place in financial and non-financial information and, thus, play an integral role in contributing to a country’s economic growth and financial stability.
GAAP (Generally Accepted Accounting Principles) is a collection of methods used to process, prepare, and present public accounting information. GAAP can be principlebased or rule based. US GAAP is rule based while IFRS is principle based. In principle based accounting standards, the management judgments and
Introduction to IFRS
Currently, more than 100 countries requires or adopt IFRS and it is expected that by
2012, more than 150 countries will adopt IFRS. India has also taken the step towards convergence of Indian Accounting Standards with IFRS. This article details the need for harmonization of local GAAP with IFRS, challenges for Corporate India etc.
1.
Importance of Accounting Standards
2.
Accounting Standards Across the world
3.
Need of Harmonization
4.
IFRS Applicability in India
5.
Challenges for Corporate India
6.
Conclusion
1. Importance of Accounting Standards
Accounting Standards are the authoritative documents issued by recognized accountancy bodies relating to various aspects of recognition, measurement and disclosure of accounting transactions and events. These are stated to be norms of accounting policies and practices by way of codes or guidelines to direct as to how the items, which go to make up the financial statements should be dealt with in accounts and presented in the annual accounts. The aim of setting standards is to bring about uniformity in financial reporting and to ensure consistency and comparability in the data published by enterprises.
A financial reporting system supported by strong governance, high quality standards, and sound regulatory frameworks is key to economic development. High quality standards of financial reporting, auditing, and ethics underpin the trust that investors place in financial and non-financial information and, thus, play an integral role in contributing to a country’s economic growth and financial stability.
GAAP (Generally Accepted Accounting Principles) is a collection of methods used to process, prepare, and present public accounting information. GAAP can be principlebased or rule based. US GAAP is rule based while IFRS is principle based. In principle based accounting standards, the management judgments and