Impact of Ind As International Financial Reporting Standarads on Selected Indian Companies Capital Structure Share Price and Cross Border Investment Opportunities

Abstract

Accounting is a business language that is a communicator for the financial performance of a business entity. The whole financial activity can be montired via accounting of the business entity and the future growth can also be measured with the help of accounting. To monitor the same in India, the professional body called Institute of Chartered Accountants has been playing a wider role. The Institute is not only providing accounting standards but also provide changes as per the need of the time. Similarly, at the international levels IFRSB International Financial Reporting standards Board is involved in providing the guidelines to set the Universal language to the accounting that can be adopted and accepted across the globe and in every country. newlineEarlier, the sinario was, every country has its own accounting standards and they follow the same to prepare and show their business entity s financial persfomance to its owner, employee, clients and other stakeholdres. In this sinario the problem started developing where the Multinational companies started doing their business activity in different countries and they need to report their financial performance into their home country where the financial performace in the form of financial statements were difference according to the country s accounting standards. This problems become tedious for so many long years for such multinational companies. newlineTo remove this problem the International Financial Reporting Board has come up with the common standards for the entire world, whre every country needs to adport such international standads or change their own accounting standards into international accounting standards. With this many countries of western side and Europe started adopting the international standards and completely switched over to the International standards i.e. IFRS newlineIn India, around March, 2014, the council of Institute of Chartered Accountants of India proposed the roadmap for adoption of IFRS converged standards i.e. IND AS.