Published Paper Details:

This study investigates the impact of International Financial Reporting Standards (IFRS) adoption on the value relevance of accounting information in Indian pharmaceutical companies. Using a comparative analysis of pre(2012-2016) and post(2017-2021)IFRS periods, the research evaluates both market-based measures--market price per share (MPS), earnings per share (EPS), and value of shares traded (VOS)--and accounting-based indicators such as book value per share (BVPS), profit after tax (PAT), and net cash flow from investing activities (NCFIA). Paired sample t-tests and effect size analysis were employed to assess changes in these variables. The findings reveal that IFRS adoption did not significantly influence MPS, EPS, or NCFIA, indicating negligible effects on market prices, earnings, and investment-related cash flows. In contrast, BVPS showed a significant improvement with a medium effect size, demonstrating enhanced relevance of book values under IFRS. VOS experienced a significant decline, suggesting reduced market activity following adoption. PAT displayed a medium-to-large effect, but the reliability of this result is limited due to the small sample size. The study concludes that IFRS adoption has strengthened the relevance of accounting-based measures, particularly BVPS, while its impact on market-based indicators remains limited or inconsistent in the pharmaceutical sector. The results emphasize the need for greater awareness, consistent implementation, and improved investor understanding to fully realize the benefits of IFRS.