Ind AS -1 Presentation of Financial Statements: Emerging Issue in Financial Reporting

Globalization has laid down a way for all the countries to adopt a single set of accounting standards so financial statements that are based on common universal accounting principles will enable the world to exchange and analyses financial information in a meaningful manner. More than 140 countries have converged or recognized the police of convergence with the IFRS. IFRSs are the globally accepted accounting standards and interpretations adopted by the IASB. So this gave a chance to India to match itself with the international reporting practices. An upcoming economy on world economic map, India, too, converged its GAAPs to International Financial Reporting Standards (IFRS). In India Ministry of Corporate Affairs (MCA) has notified the Companies (Indian Accounting Standards) Rules, 2015. Presently, the Institute of Chartered Accountants of India (ICAI) has issued 39 Indian Accounting Standards (Ind AS) which have been notified under the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS Rules), of the Companies Act, 2013. The author in his article gives a lucid analysis and insight into the issues arising out of the presentation of financial statements while focusing on the requirements of Ind AS 1 and highlighting the challenges in meeting the same.