Download or read book Impact of IFRS Adoption on Financial Decisions Case Study of Indian Information Technology Industry written by Vidya Chandrasekar and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Expansion of business environment in the 1990s changed the financial set up of India from the conventional bank based borrowings to marked based one. This necessitated companies to address global stakeholders. The regulatory requirement of different countries also necessitated companies to do multiple reporting i.e., one as per home country standard and the other as per the host country standard. To overcome multiple reporting and to address global stakeholders, a uniform system of reporting was felt necessary to facilitate comparisons, which resulted in the establishment of International Accounting Standard Board (IASB) which issues International Financial Reporting Standards (IFRS). Certain Indian companies having listed in foreign stock exchanges are reporting IFRS voluntarily in their financial statements. The present study tries to understand the impact of this voluntary adoption of IFRS on the financial decision makers through a case analysis of Wipro Ltd. The analysis compared the ma jor financial parameters under IFRS and Indian GAAP as reported by Wipro Ltd for a period of four years from 2009 -10 to 2012-13. The results postulate an increase in liquidity ratios; interest coverage ratio; marginal increase in debt equity ratio; and no significant increase in profitability ratios except net profit ratio which rose slightly in the year 2013. Overall the results indicate that the adoption of fair value accounting and strict requirement in adhering to accounting standards have strengthened the financial indicators an d provided the decision makers a transparent, true and fair accounting highlighters.

Download or read book IFRS Impact on Profitability and Liquidity Parameters for the Indian IT Sector Case Study Approach written by Ameya Patil and published by . This book was released on 2017 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: International Financial Reporting Standards (IFRS) are the new global accounting standards and have made its way into India. As the country accepts these standards, investors are curious whether change of accounting standards from Indian GAAP (Generally Accepted Accounting Principles) to IFRS will result in significant changes in financial statements.Our paper makes an attempt to study the impact of this transition for the Indian Information Technology (IT) sector using case study approach. The companies selected for this study include Infosys Ltd., Wipro Ltd., and Sify Technologies. Their financial statements with IFRS and Indian GAAP have been compared in depth. As the changes in financial statements manifest themselves better through ratios, we shall be studying the differences in profitability ratios such as the Net Profit ratio, Gross Profit ratio and Return on Investment (RoI) followed by some liquidity ratios like the Current ratio and Acid Test ratio. T-test analysis has been used to further see if there is a significant difference in these profitability and liquidity parameters.

Download or read book Impact of IFRS Adoption on Financial Statements of Select Indian Companies written by Achalapathi Venkat Kamarajugadda and published by . This book was released on 2015 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: The main purpose of this study is to identify the statistically significant differences between the Indian GAAP-based and IFRS-based financial statements of companies in terms of financial statement items through the calculated financial ratios. The analysis is based on the sample of 10 Indian companies that have voluntarily adopted IFRS reporting. Financial statements prepared as per Indian GAAP and IFRS were obtained for a period of 6 years. Financial ratios under the categories, stability, liquidity, profitability and investment valuation were analyzed using the Gray comparability index to analyze the relative effect, the Wilcoxon's signed ranks test, paired sample t-test, F-test and linear regression for testing the statistical significance. Identifying significant differences between Indian GAAP-based and IFRS-based financial ratios, the study showed that IFRS adoption has led to a statistically significant increase in liquidity, profitability and valuation ratios.

Download or read book The introduction of IFRS Consequences for investment decisions written by Simon Falcke and published by GRIN Verlag. This book was released on 2020-07-09 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2019 in the subject Business economics - Investment and Finance, grade: 1,0, Otto Beisheim School of Management Vallendar, language: English, abstract: Starting in 2005, the portion of foreign shareholders in the Dax has risen from 45% to 58% in the last decade. In the same year, the regulation of the European Union from 2002 came into effect which required all listed firms in the European Union to report their consolidated accounts in accordance with the International Financial Reporting Standard (IFRS) from 2005 on instead of each countries’ generally accepted accounting standards (GAAP). This is just one example where the volume of investments increased concurrently with the adoption of IFRS. Therefore, the question arises if the mandatory adoption of IFRS in the EU in 2005 or in other cases significantly affected and continues to affect investment decisions among adopters or third parties. In order to better account for differences between different types of investors and investees, we differentiate between retail investors, institutional investors and corporate finance activities. Moreover, we focus on the consequence of IFRS adoption on equity investment decisions as most research appears to focus on the equity instead of the credit market. Additionally, Lourenco & Branco point out that most research which finds no significant effects of IFRS adoption on investment decisions appears to focus on voluntary adoption before 2005. Thus, this paper mainly focuses on mandatory IFRS adoption. In this context, research suggests that mandatory IFRS adopters experience significant capital markets benefits as well as enhanced foreign institutional ownership and enhanced M&A activity. Ultimately, we observe four overarching drivers behind the aforementioned observations that impact investment decisions across different types of investors and investees.

Download or read book Adoption of IFRS in the Netherlands Impact on value relevance written by Alfred Mully and published by GRIN Verlag. This book was released on 2014-03-03 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Masterarbeit aus dem Jahr 2007 im Fachbereich BWL - Bank, Börse, Versicherung, , Sprache: Deutsch, Abstract: Listed Dutch firms are required by law to prepare their financial statements in accordance with the International financial Statements (IFRS) since 2005. Before 2005, listed Dutch firms prepared their financial statements using Dutch law, Title 9 of book two of the Dutch Civil Code. It is interesting to investigate the effect of the implementation of IFRS. Is the quality of the financial statements improved by the implementation of IFRS for the users of the financial statements, such as investors, suppliers and banks? This question can be answered in many ways, looking at different characteristics of the accounting information, for example the comparability, the relevance, the reliability and the understandability. In this thesis the relevance will be studied. Information has the quality of relevance when it influences the economic decisions of users by helping them evaluate past, present or future events or conforming, or correcting, their past evaluations. (IFRS Handbook, 2007, p. 40) In order to be relevant the accounting information must reflect the information needs of the users in valuing a company. In order to determine the market price of a company, investors need accounting information that reflects the share price of a company. The research done studying the relevance of accounting information for valuating companies is called value-relevance research. The implementation of IFRS had consequences for the value-relevance of the accounting information. Whether the value-relevance had improved by the adoption of IFRS is dependent on the differences between the former accounting system and IFRS. The impact on value relevance in the Netherlands has not been studied yet. The impact on value-relevance in other countries has been studied however, for example in the United Kingdom (Harris and Muller, 1999), Germany (Hung and Subramanyam, 2007) and Spain Callao et al. (2007). These studies can give a powerful insight in how the difference in value-relevance of two accounting systems can be studied.

Download or read book Impact of IFRS on Indian Insurance Industry written by Kajal J. Savaliya and published by LAP Lambert Academic Publishing. This book was released on 2014-07-23 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt: Break down of cross border barriers have encouraged the need to move towards a single set of consistent and understandable financial information reporting standards. There is also need to set single global language for accounting in world. There are many countries who have adopted the International financial reporting standard and therefore matter of convergence to IFRS has gained increasing importance in India as well. Introduction to International financial reporting standard provides the basic explanations of International financial reporting standard convergence with Indian GAAP. It discusses various aspects of challenges relating with the Indian insurance industry after Convergence of International financial reporting standard. It covers a research based work in which it examine the impact of IFRS on insurance industry performance. It will also serve the graphical presentation of questions and applied various statistical tests on forming of hypotheses.

Download or read book A Comparative Study of Segment Reporting Under AS 17 and IFRS 8 written by D.D. Bedia and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the benefits of adopting International Financial Reporting Standards (IFRS) by Indian entities and further examines the effect of adoption of IFRS on companies' segment reporting as compared to segment reporting under Indian GAAP (IGAAP). It studies the impact of adoption of IFRS 8 by taking the case of M/s Sify Technologies Ltd., an Indian listed entity and presents a detailed analysis of differences in the segment disclosures data under the new standard IFRS 8 vis-à-vis the Indian Accounting Standard, AS-17. It is observed from the study that there are certain marked deviations in segment profit and loss as disclosed by the financial statements of M/s Sify Technologies Ltd. as reported under IGAAP and those reported under IFRS. The major difference between the two reporting is the information given and the presentation requirement. Further, under IFRS 8, the disclosure requirements related to geographical segments are significantly reduced or in most of the cases completely lost, which is a major concern to stakeholders. Further, there will be lack of comparability of segment information between companies as IFRS provides discretion to the Chief Operating Decision Maker to choose what to disclose and the manner in which the information can be disclosed.

Download or read book The Impact of Adoption of IFRS on Shareholders Wealth written by Samta Ordia and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: International Financial Reporting Standards (IFRS) are designed as a common set of language for business affairs so that company accounts could be understandable and comparable across international boundaries. IFRS leads to changes in the financial statement of the company. In order to check whether shareholders' wealth is affected or not by adoption of IFRS, the present research has been carried out. The objectives of the present paper are to determine the shareholders' wealth in terms of EVA (absolute and relative) before and after adoption of IFRS for Indian companies and to examine the different components of EVA before and after adoption of IFRS in India. To check the impact, paired data t-test has been administered for testing significance. The results of the study reveal that there is no improvement in EVA and EVA-related financial parameters due to IFRS adoption. For consistency concern, coefficient of variation has also been calculated. The results indicate that consistency in EVA and EVA-related financial parameters is observed after adoption of IFRS. It may also be concluded that the fundamental principle of accounting, i.e., consistency, is supported to a large extent by IFRS adoption.

Download or read book IFRS Adoption and Its Impact on Indian Stocks written by Ruzbeh Bodhanwala and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: International Financial Reporting Standards (IFRS) or converged Indian Accounting Standards (Ind AS) and its implications are imperative for Indian companies. India has decided to converge with IFRS, which means that India will have its own converged standards in line with the IFRS. On January 2, 2015, the Ministry of Corporate Affairs notified (PIB, 2015) that Ind AS would be mandatorily applicable for accounting period ending March 31, 2016 for companies falling under certain classifications. It is expected that once these are implemented, it will have a significant impact on financial statements. The convergence of IFRS will benefit Indian companies as they would be comparable to the peers internationally, which in turn would lead to a greater equity and debt participation by international players, thus making funding easier and cheaper. This paper focuses on two key issues: Are financial statements prepared using the two different standards significantly different? And, is there an increase in equity participation of foreign investors in Indian companies which have adopted IFRS? Companies covered in the study report financial statements as per two accounting standards because they are listed on Indian stock exchange and NASDAQ. Since these Indian companies have dual listing (India and international), on Bombay Stock Exchange (BSE), they report as per Indian GAAP, and as these companies are listed on NASDAQ, they need to prepare financial statement using IFRS.

Download or read book IFRS in India written by O. Bhavani and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: International Financial Reporting Standards (IFRS) set by the International Accounting Standards Board (IASB) are adopted by the companies for the preparation of the financial statements. This ensures easy understanding and facilitates comparability of the financial statements of different enterprises of different countries and provides relevant and meaningful information to the various users of the financial statements. In India, the new set of standards which have been converged with IFRS is known as Indian Accounting Standards or Ind AS and will be implemented in India in a phased out manner (Phase 1, 2 and 3) as have been notified by the Ministry of Corporate Affairs on February 25, 2011. The recent announcement made by the Finance Minister in the year 2015 made it mandatory for all the listed companies either to adopt IFRS or converge with effect from the accounting year 2016-17. IFRS is recommended for adoption with several benefits in mind and some of the companies have already adopted new standards and have started reporting accordingly. In this context, the present paper presents an overview of double adoption of IFRS globally by the significant trade forums and the Indian companies which are voluntarily adopting IFRS. It also analyzes the financial implications of adoption of IFRS by the select companies in India. The study is based on secondary data, and Gray comparability index, t-test and F-test are employed for analyzing the data.

Download or read book Meta Analysis of the Impact of IFRS Adoption on Financial Reporting Comparability Market Liquidity and Cost of Capital written by Solomon Opare and published by . This book was released on 2017 with total page 1 pages. Available in PDF, EPUB and Kindle. Book excerpt: An extensive number of empirical studies have been devoted to the adoption of IFRS but the results have been inconclusive. We use a meta-analysis of 42 empirical studies with 68 independent samples to determine whether IFRS adoption has impacted on financial reporting comparability, market liquidity, and the cost of capital. This approach provides a logical and objective view of the empirical results, in contrast to narrative reviews which offer subjective conclusions. We find that IFRS adoption has significantly increased financial reporting comparability and market liquidity, and reduced the cost of capital. However, our assessment of sources of heterogeneity shows that the above relationship is moderated by differences in modes of adoption, peculiarities in legal systems, the divergence of local GAAP from IFRS, and the level of standards and regulatory enforcement of the country in which a firm operates. This study is beneficial to regulators and policymakers of jurisdictions that are considering the adoption of IFRS.

Download or read book International Financial Reporting Standards Implementation written by Mohammad Nurunnabi and published by Emerald Group Publishing. This book was released on 2021-08-23 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt: Contributions to International Accounting aims to address a vital gap in research by focusing on providing relevant and timely studies on International Financial Reporting Standards implementation for local and international policymakers.

Download or read book Journal of Information Systems Engineering and Business Intelligence written by and published by Journal of Information Systems Engineering and Business Intelligence. This book was released on 2018-04-02 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: Journal of Information System Engineering and Business Intelligence (JISEBI) focuses on Information System Engineering and its implementation, Business Intelligence, and its application. JISEBI is an international, peer review, electronic, and open access journal. JISEBI is seeking an original and high-quality manuscript. Information System Engineering is a multidisciplinary approach to all activities in the development and management of information system aiming to achieve organization goals. Business Intelligence (BI) focuses on techniques to transfer raw data into meaningful information for business analysis purposes, such as decision making, identification of new opportunities, and the implementation of business strategy. The goal of BI is to achieve a sustainable competitive advantage for businesses.

Download or read book IAS International Accounting Standard written by Dr. Ashad ullah Qureshi and published by Concepts Books Publication. This book was released on 2022-06-01 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: U.S. private entities considering adoption of International Standards for Small- and Medium-sized Entities (IFRS for SMEs) need to understand how the new standards will modify financial reporting. However, there has been no determination of the significance of the financial statement impact of changing from United States Generally Accepted Accounting Principles (U.S. GAAP) to IFRS for SMEs. Without this knowledge, private entities in the United States will not be able to make an informed decision as to the benefits or consequences of adopting IFRS for SMEs. Based on stakeholder theory, this study sought to determine how adoption of IFRS for SMEs would affect the financial reporting of U.S. private entities. Using identified reporting differences between the 2 sets of standards, hypothetical 2010 IFRS for SMEs’ financial statements were prepared for 3 participating entities. Analysis of variation between the hypothetical IFRS for SMEs’ financial statements and the original U.S. GAAP financial statements provided a means to determine the financial reporting impact of IFRS for SMEs’ adoption. In each of the 3 case studies, adoption of IFRS for SMEs did not significantly influence the financial reporting of U.S private entities, indicating that the communication of financial information would be fundamentally the same using the simplified IFRS for SMEs or the more complex U.S. GAAP. The results of this study suggest that IFRS for SMEs should be considered an acceptable set of standards for the preparation of quality financial statements by U.S. private entities. This study positively contributes to social change by providing new knowledge to assist private companies in the evaluation of the adoption of IFRS for SMEs; such knowledge could, in turn, reduce financial reporting costs and improve the SMEs’ economic conditions.

Download or read book Impact of IFRS Adoption in Sri Lanka written by Habeeb Mohamed Nijam and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this study is to examine the perceived impact of International Financial Reporting Standards (IFRS) adoption and whether it relates to firms' characteristics. The study was conducted among all 62 companies listed in bank, finance and insurance sector at Colombo Stock Exchange (CSE) using questionnaires addressed to financial and accounting professionals. The study employed principal component analysis and one-sample Wilcoxon signed-rank test and found that the IFRS adoption is perceived to have significantly improved financial reporting quality and corporate governance of firms. Though IFRS caused increased cost of financial reporting, it is yet perceived to be a net gain. However, respondents tend to perceive that IFRS adoption has not assured capital market benefits to the firms in bank, finance and insurance sector in Sri Lanka. It is also found that firms' size and profitability significantly and positively associate with perceived impact of IFRS on quality of financial reporting and corporate governance of firms. This study provides evidence for IFRS impact from a developing economy.

Download or read book The Effect of International Financial Reporting Standards IFRS Adoption on the Value Relevance of Financial Reporting written by Tatiana Garanina and published by . This book was released on 2019 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Purpose - The purpose of this study is to empirically examine the influence of International Financial Reporting Standards (IFRS) adoption by Russian public companies on the value relevance of financial reporting in Russia.Design/methodology/approach - We selected 67 Russian public companies that report both under RAS and IFRS for four consecutive years (2006 - 2009). Research limitations - The main limitation of the paper is the sample, but this can be explained by the fact that only 67 companies in Russia report under two standards (RAS and IFRS). So the sample could not be increased as there are no other companies that fulfill the characteristics of the sample.Findings - The obtained results show that on the Russian market there is no evidence of increased value relevance of financial reporting to external users of financial information after adopting IFRS when comparing and evaluating the two regimes (RAS and IFRS) unconditionally. Such results can be explained by the notion of mock compliance which originates due to the institutional differences between the RAS and IFRS development environments.Originality/value - Adoption of IFRS by companies in emerging markets has been a subject of interest for a lot of researchers, but this is the first research of the kind in the field of value relevance of adoption of IFRS on the Russian market.

Download or read book Measuring the Impact of International Financial Reporting Standards on Market Performance of Publicly Traded Companies written by Amanda M. Grossman and published by . This book was released on 2014 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: The decision whether to require publicly traded companies to adopt International Financial Reporting Standards (IFRS) remains in flux. In 2008, the US Securities and Exchange Commission proposed a roadmap leading to complete acceptance of IFRS in the US. With the potential replacement of US GAAP with IFRS in the near future, understanding the impact of IFRS on corporate financial reporting is more important than ever. This study examines two factors which are critical considerations in the decision to accept or not accept IFRS in the US: How different is financial statement information derived under IFRS from information derived under US generally accepted accounting principles (GAAP); and how much incremental information value, if any, is provided by IFRS over US GAAP. The present study extends prior research by examining concurrently both differences and their impact on market performance. Findings of this study support the view that differences on financial statement results between IFRS and US GAAP are not significant, thus, supporting proponents of adoption of IFRS in the US, after which all US publicly traded companies would use IFRS and not US GAAP.