STRATEGIES, BENEFITS AND CHALLEGES OF ADOPTION OF IFRS IN INDIA

A set of rich value and quality accounting standards related to financial reporting are required worldwide in order to operate businesses successfully. Over the past three decades accounting bodies and professional has been contributing to the worldwide efforts with an objective to promoting uniform and harmonized financial reporting system. The globalization have necessitated for a corporate sector to have a uniform, single and universally acceptable system of financial reporting. In 2001, International Financial Reporting Standards were developed with the contributions of International Accounting Standard Board with a view to facilitate a particular set of rich quality and understandable standards for financial reporting. The inaugural of economic reforms and globalization in the late 1980s led the process of changes in financial reporting methods in India. So Indian government also determined to converge its local accounting standards to IFRS. In 2006, ICAI constituted a task force with an objective to propose a blue prints for convergence process in India. This paper is an attempt to discuss the Indian scenario in context to roadmap of IFRS adoption, efficacy of adoption, complications in this convergence process. To conclude, paper suggests ways to address these obstacles.