Perception of Accounting Professionals in the Convergence and Implementation of a Single Set of Global Accounting Standards in India

Abstract

Purpose – The purpose of this paper is to explore the various implementation issues on the Ind AS converged with IFRS in India and measures to address the issues. Design/Methodology/approach – A detailed published literature reviewed in this context and found the scope of the research. A structured questionnaire on 5 points Likert-Scale has been used for the survey. Survey conducted on accounting professionals belongs to Delhi-NCR, India. Findings – The empirical research find the various areas of challenges faced by entities in converged IFRS implementation and suitable means for effective implementation of converged IFRS in India. Originality/value – One of the contributions to this study is to examine perceptions of Indian Accounting Professionals towards convergence and implementation of a single set of global accounting standards in India. As a result of globalization, many Indian companies initiated their business in other countries and some Multi-national companies also operated in India. Different countries having their own set of accounting standards that must be followed when incorporating financial statements hence, it creates a dual set of financial reports of entities. It is complex for the business houses and all the stakeholders to prepare, understand, Interpret and compare the end result of entities so it originates the need of uniform accounting standard which will be applied in all the countries hence International Accounting standard Board took the responsibility and after considering various signifying points issued IFRS for global benefit. Many developed and developing countries adopted IFRS. Indian accounting professionals also felt the need of adopting IFRS so the Institute of Chartered Accountants of India took initiative in this direction and issued a roadmap in this direction but due to some issues, it was not implemented properly. MCA announced a roadmap for Ind AS converged with the IFRS implantation in 2015.