Practices Of Accounting Standards And Corporate Governance In India - A Case Study

Today the accounting standards are playing very important role. Everyone is recognized that the reforming accounting practice is need of time. Effective accounting practices will determine how efficiently they have discharged their responsibilities towards the good Corporate Governance. In this context, an attempt is made here to study the accounting standards and their practices in India, with a view to improve their practices for good Corporate Governance. Analytical Method is used in this study. The research methods employed in the present study includes both sampling and observation. Twenty Indian Companies are randomly selected for the study from the top 100 companies. The sample consists of 10 private and 10 public limited companies. The data for the study are obtained from the annual reports published during 2008- ‘09 of twenty selected Indian companies. Out of 32 Indian Accounting Standards 04 standards are purposively selected such as AS-1, AS-2, AS-3 and AS-6. The results discussed and the hypotheses framed in this study are tested by the researchers. There are 42 international Accounting Standards of which 32 are adopted by Indian Accounting Standard Board. So the remaining IAS remained uncover the various field of the accounting. So the suggestions are made to improve the utility of accounting standards for ensuring the good Corporate Governance. The use of accounting standards should become compulsory by framing appropriate legislations to all companies, the use of uniform accounting standards would enhance the qualitative and comparability dimensions of financial statement and reporting. The gaps between Indian and International Accounting Standards should be narrowed down, which help to investors to trust the Corporate Governance.