Progress of IFRS convergence as a new accounting standard in India

Historically, countries around the world had their own national accounting standards However, with view to globalization movement and businesses across national boundaries are realizing that having different standards of accounting for the purposes of reporting financial results would not help. It is difficult to compare worldwide financial information without a common set of accounting and financial reporting standards. The use of a single set of high quality accounting standards would facilitate investment and other economic decisions across borders, increase market efficiency, and reduce the cost of raising capital, in these aspects IFRS is the best set of accounting standards which have been adapted by 115 countries all over the world.Institute of Chartered Accountants of India (ICAI), at its 259th meeting, held on May 2006, expressed the view that the IFRSs may be adopted in to at least for listed and large entities, also keeping in view the expected advantages such as saving in cost of capital for Indian entities raising capital abroad, saving in cost for such entities for not preparing separate set of financial statements, expected improvement in the image of Indian industry and the accounting profession in the eyes of the world, and increasing opportunities for Indian professionals abroad. In this context, the Council also noted that in respect of the recently issued Accounting Standards, there is hardly any divergence from the corresponding IFRSs and, accordingly, India is already progressing on the path of full convergence with IFRSs. In this article the investigators are going to considerer Progress of IFRS Convergence in India.