Indian GAAP and Its Convergence to IFRS: Empirical Evidence from India



There is a growing international consensus on the International Financial Reporting Standards as acceptable standards for assessment of the financial health of a company across the globe. For entities that are globally active, the differences in financial reporting requirements create extra complications in terms of preparing, consolidating, auditing, and interpreting financial statements. Against this backdrop, the prime objective of the present work is to study the rationale behind introducing IFRS, comparative analysis of Indian Accounting Standards and IFRS, challenges involved in IFRS while adopting it in India, impact and consequences on financial statement due to IFRS adoption of WIPRO Ltd. It has been found from our study that there is not much deviations and fluctuations in the net income position as disclosed by financial statement of Wipro Ltd in IFRS reporting and Indian GAAP. But deviation is rather prominent when observing the total liability and equity position which is mainly because of reclassification between equity and total liability. In true generalized sense, the return on equity, return on asset, total asset turnover and net profit ration are not significantly affected by converging to IFRS but the leverage ratio shows significant change on converging with IFRS.


GAAP; IFRS; convergence; IAS; India; Wipro Ltd

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