Empirical study on the impact of harmonzation of igaap with ifrs – A case study of infosys

Harmonized financial reporting standards are intended to provide a platform for wider investment choice, a more efficient capital market,lower cost of capital and Enhanced business development. Globally, investors need financial statement to be transparent and to provide comparative information to help them to make economic decisions. Moving towards accounting harmonization very few Indian companies voluntarily adopted IFRS to prepare their consolidated financial statements. During the switch over phase from local GAAP to IFRS companies will have to modify their accounting system and processes as well as provide comparative financial information between their previous GAAP and their new IFRS compliant report. This article examines the financial statement effects on convergence to IFRS from Indian GAAP. The results conclude that IFRS is more transparent in its disclosures and gives importance to ‘substance over form’ whereas Indian GAAP is conservative in its approach.