Challenegs And Opportunities Faced By Indian Companies For Application Of Ifrs

The International Financial Reporting Standards aim to make international financial reporting comparisons as easy as possible because each country has its set of accounting rules, over the years, the use of International Financial Reporting Standards (IFRS) as a universal financial reporting language is gaining momentum across the globe. Several countries have implemented IFRS and converged their national GAAP to IFRS. More than 100 countries and 12000 companies throughout the world, including the 27 European Union member states, require or permit the use of International Financial Reporting Standards (IFRSs), developed by the IASB. India also apply the IFRS from 1st April,2011 to include all listed companies, all banking companies, all financial institutions, all scheduled commercial banks, all insurance companies etc. IFRS implementation affects several areas of the business entity, such as presentation of accounts, the accounting policies and procedures, the way legal documents are drafted, the way the entity looks at its assets and their usage, as well as the its communications with its stakeholders and also the way it conducts its business. So the present paper focuses on challenges and opportunities for application of IFRS before Indian companies.