International financial reporting standards convergence in the Indian context: Insights from practitioners

Abstract

The purpose of this paper is to first, understand the existing status of Indian Accounting Standards (Ind‐AS) and its convergence from the perspective of accounting practitioners in India; and second, to elucidate the benefits and challenges while implementing Ind‐AS. The paper exemplifies the Ind‐AS convergence to International Financial Reporting Standards (IFRS) thereon cited as Ind‐AS. The study considers exploratory research design and uses an in‐depth interview approach, a qualitative research method of 32 practitioners in India from a heterogeneous group of 6 regulating institutions, 8 conglomerate companies and 18 audit firms including the Big four. The preparedness of the Ind‐AS transition was studied from the perspective of accounting practitioners interviewed revealing three critical perspectives. First, the respondents believed that a greater understanding of the benefits of IFRS convergence can be built by professional education and proper training. Second, the main challenges reflected by the respondents on the implementation of Ind‐AS can be summarised in two key areas: the complexity and interpretation of the accounting standards, since there are fundamental differences between IFRS and the converged Ind‐AS. Third, by strengthening the regulatory framework for monitoring, enforcing accounting and auditing requirements concerning listed companies.