INTERNATIONAL FINANCIAL REPORTING STANDARD (IFRS): A NEW INNING IN THE GLOBAL BUSINESS
Institute of Chartered Accountants of India (ICAI) had adopted and converges with the International financial Reporting Standard (IFRS) by April 2011. One may look at IFRS as mere legal compliance or also as another step towards globalization. This article tries to explain the concept of accounting standard and the concept of IFRS to the readers. The international as well as Indian Accounting Standard has a historical back ground of approximately 35 years. As per the contemporary business needs, the International Accounting Standard will be replaced by IFRS in more than 100 countries. The process of convergence with the IFRS is tedious and Indian companies will also face certain challenges while meeting IFRS in the scheduled time span. However the advantages of IFRS are very assuring. IFRS will bring India Inc to the equal platform with foreign multi-nationals, will create opportunity to attract foreign investment, it will help business combinations and support investor-friendly financial statements. A change in the paradigm shift now, needs to be translated in the change in the mindsets of the Indians to adopt IFRS as early as possible.
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