Page 38 - Banking Finance December 2016
P. 38

ARTICLE

         CONVERGED



         IND AS: A STEP




         TOWARDS




         LIBERALIZING



         THE INDIAN




         ACCOUNTING



         SYSTEM




          A         mong the recent changes in Indian corporate  ever different countries follow different Accounting Stan-


                    world, the most significant change has ever
                                                              dards and they created confusion among stakeholders and
                    been done is the convergence of Indian Ac-
                                                              investors. Therefore convergence of Indian Accounting Stan-
                    counting Standards with IFRS, briefly called IND
         AS. Earlier to prepare financial statements of organizations,  dards  with IFRS was the only way to cope with these prob-
                                                              lems so that stakeholders could get accurate information
         Indian companies needed to follow Indian GAAP but they  regarding the financial position of the companies and com-
         were not able to display the original picture by which com-  pare it on international basis.
         pany  could compete globally. Hence Indian Companies were
         found itself restricted to territorial boundaries.   On the other hand transition with IFRS is aimed at helping
                                                              Indian companies migrate to International Accounting Re-
         Incompetent to compare across the globe was the obvious  gime. In India convergence is the need of hour. In Budget
         consequence. That's why companies were looking for unique  2014 speech the Honorable FM, Mr. Arun Jaitley had said,
         and standardized reporting system which will help them to  "There is an urgent need to converge the current Indian
         provide true and fair financial picture of organizations. How-  Accounting Standards with International Financial Report-
                                                              ing Standards.
                        About the author
                                                              What does IFRS mean?
                        Tabassum Saifi                        IFRS stands for International Financial Reporting Standards.
                        Commerce Lecturer                     Simply IFRS are taken as Accounting of the world which are
                        Sri Krishna Institute of Management   globally accepted . These are unique and high quality stan-
                        and Science
                        Chandausi                             dards which help to overcome the financial issues across the
                                                              world. IFRS were established to have a common language

            38 | 2016 | DECEMBER                                                           | BANKING FINANCE








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