International financial reporting standards: a case study of select Indian companies

With the process of globalization the distances are reduced and the boundaries are removed between the nations & a new concept of Multinational & Transnational organizations emerged with a number of large sized entities crossing boundaries and entering into different countries for doing business. Like in England its important to speak English similar is the case with language of business. Even though boundaries are crossed but each company is following a different set of accounting rules as per prevailing in the parent country. A number of companies turned to the big sized U S market and tried to be listed there but for listing requirements at U S it is very important for companies to convert their accounting standards as per the conditions laid by SEC & FASB even if they are following IAS which is a time and efforts consuming process such problems led to the need of Global Accounting Standards which could be used for global and national listings alike hence comes International Financial Reporting Standards popularly known as IFRSs. This paper gives a brief description of what exactly IFRSs are, why are they required and how they are going to be implemented in India.