Implications of IFRS Implementation in India: A Perceptual Study
P. Paramashivaiah
Transactions on Economic and Business Models, Vol. 1, No. 1, 2025.
DOI: https://doi.org/10.6025/tbem/2026/1/1/1-13
Link: https://www.dline.info/tebm/fulltext/v1n1/tebmv1n1_1.pdf
Abstract:
Financial reporting is an information system of business that should be presented in an understandable
language to all the stakeholders. In the era of globalisation, India has become an economic force. To be a
global leader, India has to adopt many changes required to interface with the stakeholders of India and
abroad and comply with financial reporting standards. In this backdrop, a uniform international accounting
system (International Financial Reporting Standards) has emerged. Many countries have adopted IFRS,
and India plans to implement it in a phased manner to improve accounting quality through uniform standards.
However, accounting quality is a function of the firm's institutional setting within the legal and
political system of the economy in which it exists. IFRS implementation involves technical complexities and
legal hurdles.
This paper aims to understand the complexities and issues concerned with the delay in the implementation
process. Primary data from 198 respondents, academicians, professionals, and business people, was collected
using a five-point Likert scale and factor analysis. Kruskal Wallis tests were applied after the validation
test.
The test results showed no significant difference in the respondent's perceptions. It was found that the
expert's view is to implement and make necessary changes for adoption to gain its benefits. The paper
suggests training and removing legal hurdles soon.