Financial Reporting in India: Changes in Disclosure over the Period 1982 to 1990

ABSTRACT

India is an example of a developing country whose financial reporting practices were based on the British model as a result of colonialisation. Since independence in 1947, India has amended its company law and introduced its own accounting standards. Disclosure in the annual reports of large Indian companies was studied in 1982/3 and 1989/90. The research instrument used was a disclosure index which included both voluntary and mandatory items. Increases in disclosure over time were found to have occurred. This appeared to be partly a result of an increase in accounting standard disclosure requirements over the period studied but also there was an increase in compliance with existing standards. Additionally it was found that larger companies disclosed more than smaller companies in both periods.