Can India Bridge The Gap With International Financial Reporting Standards?

Can India Bridge The Gap With International Financial Reporting Standards?

After years of slow progress, India has taken an important step toward integration with global financial reporting norms. In February of this year, the government presented a roadmap for the country’s nonfinancial companies to adopt Indian accounting standards (Ind-AS), which are essentially a diluted version of International Financial Reporting Standards. Select Indian nonfinancial companies (those that are listed on the stock exchanges and have a net worth of at least 5 billion Indian rupees) must follow these standards starting with fiscal 2017 (ending March 2017), and they will roll out for all nonfinancial companies in the following fiscal year. In addition, India’s securities market regulator is contemplating measures to improve disclosures in Indian companies’ financial statements. These developments will likely help enhance the transparency of Indian companies’ financial statements and make international comparisons easie

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