SIGNIFICANCE OF IND AS IFRS CONVERGED STANDARDS

SIGNIFICANCE OF IND AS (IFRS CONVERGED STANDARDS)

• In the present era of globalisation and liberalisation, the world has become an economic village. The globalisation of the business world, the structures and the regulations, which support it, as well as the development of e-commerce make it imperative to have a single globally accepted financial reporting system. 
• A number of multi-national companies are establishing their businesses in various countries with emerging economies and vice versa. The entities in emerging economies are increasingly accessing the global markets to fulfill their capital needs by getting their securities listed on the stock exchanges outside their country.
•  Capital markets are, thus, becoming integrated consistent with this world-wide trend. More and more Indian companies are being listed on overseas stock exchanges. The use of different accounting frameworks in different countries, which require inconsistent treatment and presentation of the same underlying economic transactions, creates confusion for users of financial statements. 
• This confusion leads to inefficiency in capital markets across the world. Therefore, increasing complexity of business transactions and globalisation of capital markets call for a single set of high quality accounting standards. 
• High standards of financial reporting underpin the trust investors place in financial and non-financial information. Thus, the case for a single set of globally accepted accounting standards has prompted many countries to pursue convergence of national accounting standards with IFRS.