IFRS (International Financial Reporting Standards) are a set of accounting standards used to prepare financial statements providing a globally recognized way to communicate the financial performance of a company. India is implementing IFRS (called Ind-AS) in a phased manner starting in 2016-17. Adopting IFRS has benefits like increasing the credibility and comparability of financial statements internationally and with cross-border transactions but also challenges like amendments needed to laws, impact on financial results, and need for user awareness and training on the new standards. The conclusion is that while implementation issues exist, adopting IFRS in India is expected to be largely beneficial overall by promoting better investment decisions and increasing foreign investment.

1. THE IMPACT OF
IMPLIMENTATION OF IFRS IN
INDIA.
GUIDED BY: PRESENTED BY:
Dr. Renuka Bakshi Akanksha baranwal
Tanya Gambhir
M.COM 2ND SEM

2. What is IFRS?
 IFRS is a globally recognized set of standards for the
preparation of financial statements by business
entities.
 The items that should be recognized as assets,
liabilities , income and expenses.

3. Why IFRS?
 International Financial Reporting Standards convergence,
in recent years, has gained momentum all over the world .
As the capital markets become increasingly global in
nature ,more and more investors see the need for a
common set of accounting standards.

4. INDIA AND IFRS
 In India, there will be two set of Accounting Standards
The existing Indian Accounting Standards (AS)
Applicable to all companies which are not required to
adopt IFRS converged standards.
 Indian Accounting Standards, as converged with IFRS
(Ind-AS) Applicable to companies operating in India
in phased manner. The date of implementation of the
Ind-AS is expected to be with effect from Financial
Year 2016-17.

5. IFRS adoption and implementation:
Benefits
 Increase credibility and reliability of financial
statements especially in cross-border transactions.
 • Comparability of financial statements at both
national and international levels.
 • Easy access to technical support given the widespread
adoption around the world.

6. BENEFITS:
 • Career mobility of accounting professionals.
 • Extensive disclosures useful for a wide variety of
stakeholders including shareholders, lenders,
regulators, customers, suppliers, etc.
 • Improves quality of information necessary for
management decisions.

7. Some Key Challenges to
Implementation
 a) Amendments in the Law – IFRS will have a bearing
on the legal provisions as are presently set out in the
Indian Income Tax Act, Companies Act, etc.
 b) Impact on financial results –Financial reports will
experience a lot of changes. For example treatment of
depreciation differs. Hence, the value of assets as well
as the probability of the organization may swing
,which , in turn, may impact the net worth.

8. Some Key Challenges to
Implementation
 c) User awareness and training – Many people are yet
not aware of IFRS, their complexities and impact. A
change in the reporting format will require awareness
of these new norms and systems, training and
education, both professional as well the user.

9. Differences between IFRS and
US GAAP

11. CONCLUSION.
 The study was conducted to assess the implementation
of IFRS in India.
 The implementation of IFRS in India is expected to be
largely beneficial in spite of the implementation issues
and challenges.
 It promotes better investment decision making in the
capital market, positive impect on inflow of FDI.
 Increase the global comparability of financial
statements and will more opportunities.