Corporate reporting in the context of ifrs convergence and new schedule VI compliance in India

Corporate reporting is the quintessential need of any corporate entity to convey in an unambiguous and crystal clear manner the financial positions to the stakeholders to help them undertake appropriate economic decisions. Transparency in corporate reporting forms the basis of corporate governance practice. There are galore of instances of corporate failure of many prosperous companies across the globe. These corporate failures have rocked the investors’ confidence and trusts and have jeopardized the global corporate ambience making an impediment to attract foreign investors in national frontier. The corporate governance practice has been seriously impaired all throughout the globe for the lack of transparency, reliability as well as comparability in reporting aspects. The failure of the corporate management team to effectively discharge their corporate responsibility to look after the interests of the stakeholders through transparent financial reporting has been the matter of great concern. The implementation of IFRS convergence has been given much emphasis as a step towards ensuring transparency in corporate reporting to safeguard the interests of the stakeholders and also to unleash a transparent corporate ambience in the global perspectives. Indian Companies Act has been sought to be revamped with this mission and new Schedule VI has been framed to act as a better guideline for robust corporate reporting in a comprehensive manner.