Harmonisation of accounting practices in India with international financial reporting standards

Abstract

Accounting Standards play a key role in the recording the business transactions upon which various major decisions related to business such as assessing the financial health of the business, carrying out inter firm and intra firm comparison by evaluating financial performance, assessing the credit worthiness, guiding prospective investors to invest in business, providing information for assessing taxes are taken up.Globalisation had made accountants across globe feel the necessity that they should report the same newlineaccounting language and so International Financial Reporting Standards was newlinedeveloped. Recently many nations across globe have shifted from their country newlinespecific accounting standards to International Financial Reporting standard. India is in its nascent stage of Harmonisation of its accounting practices with International Financial Reporting Standards. The present study is undertaken to study about the harmonisation of newlineaccounting practices in India with International Financial Reporting Standards. The main objective of the study was to find out the similarities and differences between Indian Accounting practices and International Financial Reporting standards. newline