The Study on Challenges and Issues Involved in Convergence of IFRS in India

Abstract

This study investigates the challenges and issues that face adopting of International FinancialReportingStandards (IFRS) by Indian Firms. This paper analysis the concepts of new accountingsystem involving a major shift from perspective involving greater judgement. The main difficulty inthe free flow of money across the borders has been the different reportage standards. So IFRS hasbeen introduced with aim of increasing the flow of capital. Globalisation has changed the monopolyeconomy into open and free economy. Now national economy is integrating with internationalmarkets of other countries by spreadingtheir trade and business outside the territory of their owncountry.Business Combination, FDI, consolidated financial statement, Cash Flow Statement, technicalcollaborations and business outsourcing are some of the examples of International transactioninglobal business. The present paper makes to attempt to understand various issues and challengesinvolved in convergence with IFRS in India.