Expectation Gap Analysis in Corporate Financial Reporting Practices in India

Abstract

This article assesses the expectation gap of the practitioners and investors, if any, on the selected four parameters regarding India’s corporate reporting practices and in a curtail period of International Financial Reporting Standards (IFRS) convergence transition. Related literature has validated the primary goal of the International Accounting Standard Board to reduce accounting treatment heterogeneity and to reduce information asymmetry by harmonizing the national GAAP into IFRS through adoptions or convergences. India, for multiple reasons, has preferred the convergence route, and the converged versions of IFRS (Ind-AS) have been implemented during the financial year from 2016 to 2017 for the selected industries. For executing the study, it has framed a self-administered questionnaire for conducting an online survey between the two groups of sample respondents chosen through non-probability sampling methods. The questionnaire has been pretested for assaying its reliability and validity before the final survey. The study has concluded that before the outsets of the convergence expectation gap were existed which unlikely to reduce even after the IFRS convergence. Finally, it has acknowledged few limitations, indicated practical implications and sketched the future research road map. JEL Codes: C83, M41