Open AccessAn analytical study on impact of international financial reporting standards on financial statements and ratios of Indian companies
Author(s) -
Nabha Kamble,
AUTHOR_ID
Publication year - 2022
Publication title -
ymer
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.103
H-Index - 5
ISSN - 0044-0477
DOI - 10.37896/ymer21.01/24
Subject(s) - accounting , international financial reporting standards , globe , comparability , business , foreign direct investment , accounting standard , financial ratio , financial accounting , accounting management , finance , investment (military) , accounting information system , economics , political science , medicine , mathematics , macroeconomics , combinatorics , politics , law , ophthalmology
India is one of the emerging economies in the world. For economic development, foreign direct investment (FDI) is needed, to facilitate the investment climate. There is a need to integrate its financial reporting with rest of the economies of the globe so that investors from outside will appreciate the financial results and financial positions of the companies. This will provide uniformity and comparability of financial statements with the financial statements prepared in other countries. At present, Indian companies are preparing their financial statements as per Generally Accepted Accounting Principles in India (Indian GAAP). These Principles are based on IFRS issued by International Accounting Standard Board (IASB). However, these principles were modified substantially as per Indian laws and practices.