Impact Of International Financial Reporting Standards: A Review Of Literature

Abstract

IFRS are standards, interpretations and the framework for the preparation and presentation of financial statements. Convergence with IFRS has gained momentum in recent years all over the World.   India being an important emerging global economy, the Government of India has committed to convergence of Indian Accounting Standards with IFRS. Convergence with IFRS is being done in the form of IND-AS, which has been made mandatorily applicable from 1^st April 2016 as per the new companies‟ act of 2013. It is a known fact that new changes will also give way for improvement or effective influence on the reporting system. There is elogizing statement around the world that implementation of IFRS is the only way for the corporates and countries for their survival and growth. But, how far their influence has made the tremendous improvements in the quality of reporting is expected by the stakeholders.   The present study focuses on various reviews on adoption of IFRS on the quality of financial information. After thorough analysis of articles from both Indian and Foreign context it is observed that majority of the authors have opined that adoption of IFRS leads to improvement in quality enhancement like relevance, reliability, understandability, faithful representation of the financial information‟s prepared by the companies. The reviews have been made since 2007 to 2021.