IFRS in India

With the increasing scale of trade, need was felt for quality based, informative and reliable accounting standards. Hence, the ASB formulates Accounting Standards for India giving due consideration to International Accounting Standards. But now, trade has to give global level crossing all jurisdictions and regions. The integration of global economy demands a set of accounting standards which are generally accepted all over the world for facilitating the countries doing trade in a more simplified way of accounting. International Financial Reporting Standards (IFRSs) are such set of accounting standards as have been prepared to cope up with the increasing demands of accounting at global level. More and more countries are moving to IFRSs due to their capability to facilitate economic growth in international or global market. India had decided to converge with IFRS in phased manner and the initiative was taken in April, 2011 by letting a roadmap for convergence with IFRS. Different roadmaps have been set for different entities like insurance companies, banking companies and other financial enterprises. Indian trade is growing at a tremendous rate and making its way ahead in global market. Hence, it is worth benefitting for Indian trade to converge with IFRSs. The first phase of convergence with IFRS is partly completed in India. The concept of IFRS is taken very sensitively by the Govt., regulatory authorities and concerned entities. As the IFRSs are widely known as global accounting standards, it becomes need of the hour to adopt them. This paper has been prepared using secondary data and information obtained from various websites, published sources like books, journals, articles etc. Why more and more countries are moving to IFRSs? Research has been done to get the answer in an adequate and reasonable way to understand the concept and to find its importance to attract countries adopting and converging with IFRSs. India adopted the way to converge with IFRSs so that Indian enterprises can apply global set accounting standards and prosper the economy by trading globally with more confident, reliable and high quality accounting standards. Before converging with IFRS, a challenge towards convergence with IFRS was lack of professionals. For this purpose, the ICAI launched a course (CA) that proves itself the solutions to the challenges. Today’s position of India regarding convergence with IFRS is satisfactory, fast and smooth going. However, the results are yet to come showing the outcome of emerging concept being adopted by India.