A number of multi national companies are establishing their businesses in various countries with emerging economics and vice versa.
More and more Indian companies are being Listed on overseas stock markets.
The use of different accounting frameworks in different countries, which require inconsistent Treatment and presentation of the same underlying economics transaction, creates confusion for users of financial statements.
Therefore, increasingly complexity of business transaction and globalisation of capital markets call for a single set of High quality accounting standards. which are called Indian Accounting Standard (Ind AS).
Thus, the case for a single set of globally accepted accounting standards has prompted many countries to pursue either adoption or convergence of National Accounting standards with International Financial Reporting Standards (IFRS).
International Financial Reporting Standards (IFRS) are considered a “Principle Based ” set of Standards. every Major nation is moving towards adoption them to some extent.
So over the next few years, thousands of companies will adopt the international financial reporting standards while preparing their financial statements.
Consistent, comparable and understandable financial reporting is essential to develop a robust economy.
with a view to achieve international benchmarks of Financial reporting,
the institute of Chartered Accountant of India (ICAI), as a proactive role in accounting, set out to intrude Indian Accounting Standard (Ind As) converged with International Financial Reporting Standards (IFRS).
Initially Ind AS were expected to be implemented from the year 2011. However, keeping in view the fact that certain issues including tax issues were still to be addressed, the Ministry of corporate affairs to postpone the date of implementation of Ind As.