SHIFT OF ACCOUNTING STANDARDS IN INDIA FROM DOMESTIC TO INTERNATIONAL: A COMPANY SPECIFIC ANALYSIS

Received: 13.06.2021; Revised: 22.07.2021, Accepted: 15.09.2021, Published Online: 30.09.2021

Kamala Kant Das

Senior Research Fellow, Department of Business Administration.Sambalpur University

Jyoti Vihar, Sambalpur, Odisha, India, kamal.papun@gmail.com

ORCID-0000-0003-3946-1296

Arka Kumar Das Mohapatra

Vice- Chancellor, Odisha State Open University, Sambalpur, Odisha, India

akdm.2002@gmail.com, ORCID-0000-0003-2085-6992

Abstract

Research background: Ind AS is the convergence form of IFRS in India to Shift the Accounting Standards from Domestic to International. The financial year 2015-16 is the transition period for Indian companies to translate the financial statements according to the Ind AS from Indian Generally Accepted Accounting Principles (I-GAAP).

Purpose of the article: The immediate translation from I-GAAP to Ind AS leads to significant impact on financial statements of the Indian companies. The aim of the paper is to assess immediate impact on financial statements of Indian companies.

Methods: Data collected from the audited financial statements of Indian companies for 59 financial variables of Balance Sheets, Profit and Loss Statements, and Financial Ratios. A systematic differential analysis has been conducted specific to 54 companies with respective 59 financial variables.

Findings  &  value  added:  Empirical results indicates that financial variables,  namely, Total Non-Current Assets, Total Equity, Total Expenses, ROA, have higly positive impac on  most of the Indian companies after implementation of Ind AS;   financial variables, namely, Total Current, Total current Liabilities, PAT, Employee Benefit Expenses, Depreciation and amortization expense, Deffered Tax, Debt Equity have higly negative impac on  most of the Indian companies after implementation of Ind AS.

JEL Classification: M41; E16; H83; B17; G15

Keywords: IFRS; Ind AS; Transition; Differential Impact