INTERCONTINENTAL RESEARCH & REVIEW seventeen
International Found & Known Research Journal, ISSN- 2250-2556; VoL. We *ISSUE-1, 04, 2012. 1 . 1 Introduction:
India today has become an international economic force.
To stay like a leader in the international marketplace, India
opted the changes this need to program Indian stakeholders', the intercontinental stakeholders' and comply
with all the financial credit reporting in a language that is understandable to all of which. The Worldwide Financial
Credit reporting Standards (IFRS) aims to generate international
monetary reporting comparisons as easy as possible
since each region has its own pair of accounting
guidelines. It is a set of international accounting and revealing standards that can help to harmonize company
financial information, improve the transparency of
accounting, and ensure that investors receive even more
accurate and consistent reports.
1 . two Objectives From the Study:
1) To study the difficulties and Problems faced by simply
Indian Businesses in the process of Convergence to
IFRS. 2) To focus on the Measures delivered to address the
1 . 3 Methodology:
For the purpose of this current study, generally
literature review and second data continues to be used.
The required secondary info was gathered from the
approved Annual Reports and Established Website of
ICAI and IFRS, numerous Journals and Research Paperwork,
diagnostic examine reports and newspaper content have
recently been surveyed for making this examine.
1 . 5 Problems And Challenges:
Despite several benefits as may be viewed out
by the different people, you will see several problems
that will be encountered on the way of IFRS concurrence.
1 . Difference in GAAP and IFRS:
Adoption of IFRS implies that the entire pair of
financial assertions will be required to undergo a major
change. Right after are large and very profound
routed. It will be a challenge to create about consciousness
of IFRS and its effect among the users of financial
IFRS- Problems and Difficulties
In First-time Adoption
5. Sunita Ajaykumar Rai
A B T T L A C T
Trust and transparency led to a discussion of the critical purpose of economic reporting. Constant, comparable and understandable economical information may be the lifeblood of commerce and making purchase. In India the Start of Chartered Accountants of India (ICAI) has decided to adapt IFRS for accounting periods starting on or after April you, 2011. This kind of paper relates to the Problems and Challenges encountered in the process of convergence in Indian perspective and actions taken to talk about the issues.
2 . Issue of GAAP Reconciliation:
The Securities Exchange Commission(SEC)
laid out two options in its proposal-one calling for the
traditional IFRS first-time usage reconciliation, the
other requiring that stage plus a great on-going unaudited
reconciliation with the financial claims from IFRS to
U. S. GAAP. Clearly the other one is a more costly
approach for firms and for traders.
3. Teaching and Education:
Lack of schooling facilities and academic training
on IFRS will also create challenge in India. There exists a
need to be informed on IFRS and its software. Charles
Noski, former chief financial police officer and Vice Chairman
of the Board of AT& To Corporation and a former Deloitte
& Touche partner observed that" Educating 100, 500 employees
on how they must carry out their organization is not a
trivial activity, "
5. Legal and Regulatory considerations:
Currently, the reporting requirements are
governed by numerous regulators in India and their provisions override other regulations. IFRS would not recognise
this sort of overriding regulations. The regulatory and legal requirements
in India will create a challenge except if the same can be
been resolved by particular regulatory.
IFRS convergence might affect most of the
items in the financial claims and consequently the
tax debts would likewise undergo a big change. Thus the
taxation regulations should address the treatment of taxes liabilities coming on affluence from American indian...