A study of International Financial Reporting Standards in India – Challenges and Opportunities

The world is transforming into a global village and this requires the harmonization and uniformity of procedures and practices. One such attempt is the introduction of International Financial Reporting Standards (IFRS). International Financial Reporting Standards usually called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board to provide a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. They are a consequence of growing international shareholding and trade and are particularly relevant for companies with shares or securities listed on a public stock exchange. This paper focuses on the challenges and opportunities of IFRS in India. It is important to adopt IFRS to compete with other countries, secure FDI and to improve accounting system. In the modern era of globalization in which Indian economy has also bloomed, adopting IFRS would make Indian business at par with other global business. India also faces challenges in adoption of IFRS which has also been discussed in this paper.