Published Paper Details:

ABSTRACT Financial reporting is as old as existence of Joint Stock Companies. The need of financial reporting arises due to separation of ownership and management of the companies. In India financial reporting is regulated by the enactment of the Chartered Accountants Act, 1949 and The Companies Act, 1956 and earlier Companies Act. For long time Indian Corporates were working in the separate isolated compartment, somewhat immune from global environment and reporting was concentrated within the needs of domestic arena only. ICAI with issuance of Accounting Standards was successfully able to standardise the Indian Reporting System. With the popular LPG reforms a new era of competitive environment was thrown open to Indian corporates, which not only led to consolidation of Indian corporates with foreign multinational and transnational organisations, but also required Indian reporting system to sync with global standard to facilitate comparison among all global business entities. International Financial Reporting Standards (IFRS) provides a standardised reporting system to facilitate easy comparison of different business entities to serve unique needs of its various stakeholders. This paper discusses the needs for IFRS, its adoption procedure in India and the utility for India in adopting IFRS, the problems and challenges faced by the stakeholders and its impact on India. Further, this paper also tries to bring about the ways through which these problems can be addressed.