“Convergence with

IFRSs (International
Financial Reporting
Standards) by
Indian Companies”.

[Type the company

name] .SUDEEP SHAURYA
[Type the company
address] +919718252389
[Type the phone
number] sudeepshaurya@gmail.com
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 SYNOPSIS REPORT

TITLE: - “Convergence with IFRSs (International Financial

Reporting Standards) by Indian Companies”.

A report submitted towards the partial fulfillment

of the requirement of the two years full-time Post
Graduate Programme in Management.

Submitted by:-
Sudeep Shaurya
2K8-PGPM E-57

Faculty Guide
Mrs. Hema Khanna

ASIA PACIFIC INSTITUTE OF MANAGEMENT STUDIES

NEW DELHI
CONTENT

1.Title and Introduction

2. Objective of the study
3. Rationale of Study
4. Theoretical literature review
5.Research Methodology
6. Bibliography
TITLE:-

“ RE-ENGINEERING OF INDIAN CORPORATES

WITH IFRS ”

INTRODUCTION:-

The Institute of Chartered Accountants of India (ICAI) as the accounting

standards-formulating body in the country, has always made efforts to
formulate high quality Accounting Standards and has been successful in
doing so.
Now, as the world globalizes, it has become crucial for India to make a
formal strategy for convergence with IFRSs with the objective to
harmonizes with globally accepted accounting standards.

IFRS in India would cover the following public interest entities in its first
wave.

Listed companies
Banks, insurance companies, mutual funds, and financial institutions
Turnover in preceding year > INR 1 billion
Borrowing in preceding year > INR 250 million
Holding or subsidiary of the above
OBJECTIVE :-

1. To understand the implications of changing importance of ifrs in

the present situation and the process of migration in adopting
ifrs.
2. To show and understand how International Financial Reporting
Standards will affect the Indian corporate

SUB OBJECTIVES:-
 To outline detailed comparative statement on Indian GAAP and
IFRS.
 To Understand the Financial demography of Indian corporate in
implementing the IFRS.
 To understand the issues and significance in globalizing the
accounting standards on various industries like telecom, banking,
retail etc.
RATIONALE OF THE STUDY:
International Financial Reporting Standards (IFRS) is gaining momentum
throughout the world as a single, consistent accounting framework and is
positioned to become the predominent GAAP in the near future. More than
100 countries have moved to, or base their local standards on IFRS.
Indian Accounting Standards have not kept pace with changes in IFRS.
There are significant differences between IFRS and I-GAAP, because Indian
standards remain sensitive to the legal and economic environment.
Recognizing the significance of having full convergence with IFRS, the
ICAI has decided to adopt a „big bang‟ approach and fully converge with
IFRS issued by IASB, from accounting periods commencing on or after 1
April 2011 subject to regulatory approvals.
The use of different accounting frameworks in different of the same
underlying economic transactions, creates confusion for users of financial
statements. This confusion leads to inefficiency in capital markets across the
world. Therefore, increasing complexity of business transactions and
globalisation of capital markets call for a single set of high quality
accounting standards.
THEORETICAL LITERATURE REVIEW :-
In India, the Statements on Accounting Standards are issued by the Institute
Of Chartered Accountants of India (ICAI) to establish standards that have to
be complied with to ensure that financial statements are prepared in
accordance with generally accepted accounting standards in India (India
GAAP ).
International Financial Reporting Standards (IFRS) is a set of accounting
standards, developed by the International Accounting Standards Board
(IASB) that is becoming the global standard for the preparation of public
company financial statements.
The reasons for the different accounting practices may be:-
a) Too many alternative accounting treatments in the accounting standards;
b) Lack of harmony among government, standards setting body, and
regulatory agencies.
To overcome these problems, harmonization of accounting standards
has already been started.
International Financial Reporting Standards remove some of the subjectivity
from financial reporting and provide a consistent basis for recognition,
measurement, presentation and disclosure of transactions and events in
financial statements.
Benefits to Corporate
Beyond the legal requirements to comply, corporate in India perceive that
converting to IFRS would help in enhancing their reputation and
relationships with the financial community. Other benefits include,

Increased consistency between internal and external reporting

Comparability with international competitors
Increased access to international markets
Improvement in risk rating
Improvement in planning and forecasting

Government will be in a better position to assess the tax liabilities of

multinational companies receiving income from overseas as well as for
foreign multinationals setting up shop in their own country.
METHODOLOGY:
The goal is to complete a rigorous study of the perceived impact of the
International Financial Reporting Standards on the India Inc.,

1)In-depth study of accounting standards.

2)Case studies of other countries where IFRS has been implemented.

Data collection: Secondary sources

internet websites
project mentor

Tools and Techniques:

Word, Excel
BIBLIOGRAPHY:-

www.icai.org