Impact of Converging to IFRS on Key Financial Ratios with Reference to BSE Listed Firms
P. Amrutha, M. Selvam and C. Kathiravan
This paper focusedon providing prior evidence ofimpact ofaccounting ratios resulteddue to convergence to International Financial Reporting Standards (IFRS) in India. A graphical representation of its impact on the key performance indicators, after converging with IFRS, is shown in this paper. The accounting ratios presentedusing IGAAP and Ind AS on the date of convergence 1st April 2016 was compared for the 79 sample companies using Wilcoxon Signed Ranked test. Although earlier research explored the economic outcomes from International Financial Reporting Standard (IFRS) adoption, very fewindicate the effects of IFRS adoption on key accounting ratios, with reference to India. This study exhibit significantly higher impacton the accounting ratios prepared under IFRScompared to those prepared under Indian GAAP.
Volume: Volume 23
Issues: Issue 1
Keywords: International Financial Reporting Standards (IFRS), Indian Generally Accepted Accounting Principles (IGAAP) and Financial Ratios