Title: Impact of IFRS convergence on financial statements with special reference to IT sector

Authors: Gagandeep Singh; Sukhpreet Kaur; Rahul Sharma

Addresses: Mittal School of Business, Lovely Professional University, Punjab, India ' Mittal School of Business, Lovely Professional University, Punjab, India ' Mittal School of Business, Lovely Professional University, Punjab, India

Abstract: The convergence of Ind-AS with IFRS in phased manner has led Indian companies to make suitable changes in the financial statements. This is done to ensure high quality information, transparency and comparability of financial figures. The present study assesses the impact of Ind-AS on the reported net income and equity of sample companies by taking into account seven major key impact areas. The Gray's index of conservatism is also used on the reported equity to quantify the level of conservatism between previous IGAAP with new Ind-AS. Based on the financial results shown by ten samples IT companies, the study finds that there is steep rise and fall in their net income and equity during Ind-AS transition process. It also finds that both Ind-AS and IGAAP are equally conservative in the reporting of equity.

Keywords: Ind-AS; net income; equity; conservatism.

DOI: 10.1504/IJPSPM.2020.105111

International Journal of Public Sector Performance Management, 2020 Vol.6 No.1, pp.1 - 16

Received: 15 Jun 2018
Accepted: 07 Feb 2019
Published online: 13 Feb 2020 *

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