Impact of transition to International Financial Reporting Standards: Empirical Evidence from India

Abstract

The International Financial Reporting Standards (IFRS) are a set of accounting standards that countries can choose to adopt in full or in part. There are 143 countries around the world that have adopted IFRS, in some form. This study analyses the impact of the transition, from generally accepted accounting principles of Indian jurisdiction (IGAAP) to international financial reporting standards (IFRS), on NIFTY50companies. The impact of IFRS on the financial variables of the NIFTY50 companies was studied with the application of Grey Comparability Index and Wilcoxn Signed Rank Test. It was concluded that the financial ratios of sample firms got significantly affected, as a result of the IFRS adoption in India.