Page 35 - Banking Finance November 2019

ARTICLE

IND AS - A NEW

BEGINNING IN

CORPORATE

ACCOUNTING

Evolution: interest of foreign investors in Indian Cos, the need was felt
for making Indian Accounting Standards to evolve to the
Every country stipulates a method for companies to report
financial data based on rules called accounting standards." globally accepted norms. The objective of implementation
India had so far till 31.03.2016 been following Indian of IND AS was to standardize the diverse accounting policies
and practices and make them comparable with global
Generally Acceptable Accounting Principle (IGAAP).
standards so as to increase the reliability to the financial
However, India was booming as emerging economy and
many investors were eyeing Indian companies for investing statements of Indian corporate.
money under Foreign Direct Investment, Foreign Portfolio
investment segment. Just as any investors would invest after This could be achieved in two ways by ICAI one option was
doing exhaustive analysis of financial statements of any to accept International financial Reporting Standards (IFRS)
entity, all these investors started undertaking the in-depth as it is and make them applicable in India and another was
analysis of annual reports of Indian listed companies. to converge and evolve the Indian Accounting Standard with
global best practices. ICAI chose the second option and MCA
With the manifold growth of Globalization and increased came out with IND AS initially spelling out 41 accounting
standards. They are named and numbered in the same way
About the author as their corresponding IFRS.

Sheetal Sharma Objective
Senior Manager & Faculty IND AS has been evolved by MCA & ICAI with the following
Bank of Baroda objectives:-
Baroda Academy New Delhi.
Y To facilitate global investors for making investment in

BANKING FINANCE | NOVEMBER | 2019 | 35