DOI: 10.5176/2251-1997_AF18.67
Authors: Dr. T.P.Ghosh
Abstract:
Based on first set of Ind AS compliant financial statements released by Indian companies in Phase I of the IFRS convergence process, this research study aims at examining whether financial performance and financial position of an entity are significantly impacted because of IFRS convergence, and whether such impact is size dependent. Based on a sample of 100 Ind AS compliant listed companies, paired samples t-test and Wilcoxon Signed Ranked test are applied to compare means of iGAAP equity and Ind AS equity on the date of transition, i.e. 1 April 2015 and on the comparative period reporting date, i.e. 31 March 2016. Ind AS total comprehensive income is compared to iGAAP profit for the comparative period i.e. 2015-16. Results show that Ind AS adjustments to equity have significant impact but total comprehensive income as per Ind AS is not significantly different from iGAAP profit. Applying multiple regression analysis, it is found that size of the company is relevant in explaining change in equity caused by IFRS convergence.
Keywords: Amortized cost; FVTPL; FVTOCI; other comprehensive income; IFRS convergence; iGAAP; Indian Accounting Standards
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