Volume : 2, Issue : 5, MAY 2016

IFRS: A GLOBAL PARADIGM OF FINANCIAL REPORTING

Pankaj Kumar Tripathi, Dr. B. K. Jha

Abstract

In spite of globalization and emergence of Multinational Corporation, we are still lacking in harmony and comparability in financial reporting across the globe. Since, the world has been “Glocal” so we require internationally accepted principle, concept and conventions of financial reporting. So, The International Financial Reporting Standards (IFRS) was issued by International Accounting Standards Board (IASB). International Financial Reporting standard provide a single set of high-quality, understandable, enforceable and globally accepted financial reporting standards. All major economies have established timelines to converge with, or adopt the IFRS.

Major economies of the world such as United States of America, China, Canada etc. has converged with the International Financial Reporting Standards with their respective local GAAP. India has also converged with the International Financial Reporting Standards for the reporting and presentation of transactions with effect from 1st April 2011. Currently International Financial Reporting Standards is adopted by 147 countries across the world. The adoption of the International Financial Reporting Standards surely will ensure uniformity, comparability and reliability of the financial reporting across the world.

This paper attempts to identify and construe the objectives, advantages, issues and challenges of International Financial Reporting Standard.

Keywords

IFRS, IASB, GAAP

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Article No : 27

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