Transition to Future Indian GAAP-IFRS

Abstract

IFRS stands for International Financial Reporting Standards and Interpretations issued by IASB. IFRS is a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS are considered a "principles based" set of standards in that they establish broad rules as well as dictating specific treatments. Convergence is aimed to design and maintain national accounting standards in a way that financial statements prepared in accordance with national accounting standards draw unreserved statement of compliance with IFRS.  For convergence ICAI has adopted once at all approach. More than 113 countries around the world, including all of Europe, currently require or permit IFRS reporting. Global standards do not recognize override by non-standard setters. Moreover the difference between IFRS and Indian GAAP need to be understood, which is discussed in this paper.  This paper also highlights the progress so far in convergence, the impact, grey areas of IFRS 1 and challenges of IFRS.