Benefits Of IFRS Adoption

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Benefits of IFRS Adoption: Some major benefits of adopting IFRS are:-  IFRS compliant financial statements would enhance international comparability of accounts  set a reliable framework for users of financial statements  help cross border capital listing  Enable benchmarking with global peers and improve brand value.  Improved Access to International Capital Markets  Lower Cost of Capital  Enable Benchmarking with Global Peers and Improve Brand Value  Escape Multiple Reporting  Reflects True Value of Acquisitions The Adoption Dilemma This is a period of mild economic conditions. The current shaken market confidence globally may present significant challenges to organizations. Adoption of IFRS could result in an added considerable …show more content…

Out of the 38 effective IFRS standards, there are only 2 standards in India that have no difference with IFRS and six have minor differences. Eighteen standards of IFRS will need a level of technical preparedness by the industry and the professionals for implementation or would have conceptual differences with the Indian standards. Ten standards need changes in laws and regulations for them to comply with the principles of IFRS. There have to be significant amendments in various regulations and acts like that of the Companies Act, RBI Act, tax laws, laws for specialised industries including banking, insurance etc, for compliance with IFRS …show more content…

Internally, companies appear to be doing sensible preparatory work, but there is still no clarity on the external front, particularly amendments to legislation and regulatory frameworks. “Here in India, the format and certain aspects of financial reporting are governed by various regulations like the Companies Act, Reserve Bank of India regulations, Banking Regulations Act, and the Insurance Act,” says Wipro's Arunachalam. “How will you take that power away from those laws and put it in the hands of the standard-setting process? We need to deal with these regulatory issues [if we want to] achieve convergence.” Impact on Some Key Industries in India: Here we would like to deal with some critical issues involved in IFRS adoption in some key Indian

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