Analyzing the influential effect of transition from IGAAP to Ind-AS

Abstract

The global recognition of the IFRS encourages companies to adopt the IFRS through a convergence process. Convergence is required in India for all listed companies and companies with a net worth of 250 crore or more, with the exception of insurance companies, banking and non-banking finance companies. In India, we have accepted the IFRS in its exact original form but with adjustments as per the Indian scenario. The convergence of AS to Ind-AS is having mixed consequences and hence the purpose of this study is to assess the effects of the convergence of the old accounting system to the new one, i.e., Ind-AS. To assess the effect of the conversance from IGAAP to Ind-AS Power Finance Corporation Limited, has been selected. The company is based in New Delhi. The Gray’s comparability index was used to evaluate the relative impact of Ind-AS and GAAP on various components of the final statements.

Subject Classification:

• 91G50
• 91G51

Keywords:

• Financial reporting
• IFRS
• IGAAP
• Ind- AS
• GCI