Mediating Perception of Accounting Professionals Towards Implementation of International Financial Reporting Standards

Abstract

Indian companies are also growing their wealth worldwide due to diversification, cross-border fusions, acquisitions, or dis-investments with the growth and development of the economy and increasing convergence of global economies. Under these conditions, it is necessary for the Indian corporate globe to follow IFRS (To create a common accounting language throughout the world, so that businesses and their financial statements can be consistent and reliable across nations, International Financial Reporting Standards (IFRS) were created by International Accounting Standards Board (IASB) in the year 2001) for its financial reporting. The Core Group of ‘Ministry of Corporate Affairs’ of India (MCA) has recommended IFRS convergence in a phased manner from April 1, 2012. The present study examines the attributes that form the perceptions of accounting professionals towards the ‘International Financial Reporting Standards’ (IFRS) implementation. The studies suggested that the implementation of IFRSs has been focused, with a view to minimize difficulties for the implementation participants (Sharad Sharma, Manag Audit J 32(4/5), 406–426. https://doi.org/10.1108/MAJ-05-2016-1374, 2017). A similar view expressed by (Weaver, Account Europe, 12(2), 1–25, 2015) observed different dimensions about the global accounting standards and the challenges faced during the implementation such as costs to be incurred in the implementation, IFRS awareness, and IFRS training and technology to be adopted to enhance that the implementation of IFRS brings comparability and uniformity. A comparative study conducted on usage of the national GAAP (Generally Accepted Accounting Principles (GAAPs) are those concepts and conventions on which the accounting system is based. The primary objective of these principles is to bring uniformity and consistency in the preparation and presentation of final statements). The author focused on reliability of information and openness in the capital markets are positively linked with the IFRS compliance (Bova, J Int Account Res, 11(1), 83–111, 2012).

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Fig. 1

Source: Compiled by Authors

Notes

  1. 1.

    International Accounting Standard Board (IASB) is an independent, private-sector body that develops and approve International Financial Reporting Standards. The IASB operates under the oversight of the IFRS foundation.

  2. 2.

    The International Accounting Standards Committee (IASC) was formed in1973 through an agreement made by professional accountancy bodies from Australia, Canada, France, Germany, Japan, Mexico, The Netherlands, the United Kingdom and Ireland, and the United States of America.

  3. 3.

    Standing Interpretation Committee—developed and invited public comment on interpretations of IASC Standards, subject to final approval by the IASC Board.

  4. 4.

    Indian Accounting Standard, commonly called Ind-AS are the accounting standards adopted by companies in India in the year 1977.

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Correspondence to Harjit Singh.

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This article is part of the topical collection “Computational Statistics” guest edited by Anish Gupta, Mike Hinchey, Vincenzo Puri, Zeev Zalevsky and Wan Abdul Rahim.

To create a common accounting language throughout the world so that businesses and their financial statements can be consistent and reliable across nations, International Financial Reporting Standards (IFRS) were created by International Accounting Standards Board (IASB) in the year 2001.

Generally Accepted Accounting Principles (GAAPs) are those concepts and conventions on which the accounting system is based. The primary objective of these principles is to bring uniformity and consistency in the preparation and presentation of final statements.

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Puri, N., Singh, H. Mediating Perception of Accounting Professionals Towards Implementation of International Financial Reporting Standards. SN COMPUT. SCI. 1, 317 (2020). https://doi.org/10.1007/s42979-020-00334-5

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Keywords

  • IFRS
  • GAAPs
  • Accounting professionals
  • Factor analysis
  • Kaiser–Meyer–Olkin (KMO) test
  • Bartlett's test

JEL Classification

  • M41
  • E42