Chapter 1:

Company Profile

1
Introduction

J Mandala & Co. (JMC) was established in the year 1956 by Mr. J Mandala (Founder partner)
in Kolkata. The firm has grown substantially during last 60 years. Grown over years, the firm
has now strength of five full time partners assisted by a team of professionals and consultants
comprising Chartered Accountants, M.B.A.'s, Company Secretaries, Advocates and Cost
Accountants.

Our values define who we are. They are the fundamental beliefs of our global organization.
They guide our actions and behavior. They influence the way we work with each other – and
the way we serve our clients and engage with our communities.

Every day, each one of us makes choices and decisions that directly affect the way we
experience each other and the way our clients and wider communities experience us. Our
values give us confidence that we are using the same principles to help us make these
decisions throughout our global organization.

The primary philosophy of the Firm is to grow with its clients through the provision of
personal advice, consultancy and high quality professional services. One important link
between the Firm and its clients is the inter-linked growth that both enjoy. Through the
provision of high quality, personalized service, our clients have enjoyed tremendous growth.
This growth has in turn contributed to our own growth, in term of staff, locations, and
expertise and specialist departments. Our growth, in turn, places us in a better position to
offer higher quality service to our clients. Currently, we are experiencing a steady growth in
our clientele and staff strength. This is indicative of the growth that both we and our clients
enjoy.

1.2: Vision & mission of the Company:

The firm's vision is to be the premier auditing, accounting, tax and business consulting firm
by every measure that matters.

Mission statement:

To provide complete, reliable and high quality auditing and consulting services to individuals
and institutions, be it manufacturing, trading, tourism, financial, governmental, non-
governmental, medical, hydro power, hotels, and any other sectors.

2
1.3 Values

The values of the organization are as follows: Valuing People We believe that our success
depends first and foremost on people. By respecting people in everything we do, we will
develop and maintain high quality, mutually beneficial relationships with our clients,
professional colleagues, referral sources, vendors, community members and each other.
Building Client Relationships We seek to earn long-term client loyalty by developing a deep
understanding of each client's business and personal goals, by demonstrating unwavering
reliability and integrity in our work and by acting as an independent and objective advisor to
our clients. Upholding Quality and Integrity We will maintain an environment where a
commitment to quality, honesty, respect, fairness and professional ethics governs the actions
and decisions of everyone within our firm.

1.4: J.Mandal & Co.: Major Markets and Customers:

The market for J.Mandal & Co is not limited to some particular type of business or any
particular sector. Rather the businesses, enterprises and institutions whether small, medium or
big related to any sector (Education, Financial Institutions, Trading, Hydro-power, Hospitals,
Hotels, NGOs, INGOs, Business Enterprises, Manufacturing, etc.) whether located inside or
outside India, are the major markets for the various services provided by the organization.
The firm has provided consulting and auditing services to major Banks and Financial
Institutions in India and overseas. The firm has also involved in advisory works, auditing and
as a counterpart with local consultancy and also in the capacity of independent expert for
donor agencies.

 Products and Services: The major products and services provided by the firm are
auditing, due diligence, account outsourcing, project management and consulting
services which are as follows: Audit Auditing is a systematic process of objectively
obtaining and evaluating evidence regarding assertions about economic actions and
events to ascertain the degree of correspondence between those assertions and
established criteria and communicating the results to interested users. The various
types of auditing services provided by the organization are Statutory Audit, Due
Diligence Audit, Internal Audit, External Audit, Financial Audit, Forensic Audit etc.

3
The most common types of audit are briefly explained below:

1. Financial Audits: In a financial audit, the assertions about which the auditor seeks
objective evidence relate to the reliability and integrity of financial and,
occasionally, operating information. This type of audit usually covers the basic set
9 of financial statements (Balance Sheet, Income Statement, Statement of Cash
Flows, Statement of Changes in Equity and notes to the financial statements)
2. Statutory Audit: A legally required review of the accuracy of a company's or
governments’ financial records is what termed as Statutory Audit. The purpose of
a statutory audit is same as the purpose of any other audit - to determine whether
an organization is providing a fair and accurate representation of its financial
position by examining information such as bank balances, bookkeeping records
and financial transactions.
3. Due Diligence Audit: Due Diligence is an extensive look at a company in order to
make the best informed business decision about a company. Due Diligence Audit
is that audit which is carried out in order to find/estimate the actual financial
position of the organization before a large decision is about to take place like
mergers and acquisitions, loan agreement, or when the company's financials are
going to be presented to the public. Due diligence audit includes thorough
investigations of the books and records that can range from asset appraisals to day
to day transactions. A thorough understanding of internal controls and its
effectiveness also become necessary to ensure the risk for the business is as low as
possible.
4. Internal Audit: Internal audit is an independent, objective assurance and
consulting activity designed to add value and improve an organization's
governance, risk management and management controls over:
efficiency/effectiveness of operations (including safeguarding of assets), the
reliability of financial and management reporting, and compliance with laws and
regulations.
5. Compliance Audit: A compliance audit determines the extent to which rules,
policies, laws covenants, or governmental regulations are followed by the entity
being audited. For example examination of tax returns of individuals and
companies by the Internal Revenue Department for compliance with the tax laws.
Account Outsourcing: Outsourcing is gaining popularity as a way to reduce
4
 financial and operational risks by making them easier to manage. Keeping this in
mind, the firm provides accounting services to various organizations. Business
organizations can alleviate the burden of 10 staying on top of frequent changes to
tax codes and accounting regulations and provide increased levels of information
transparency, visibility of controls and clarity of accountability by outsourcing of
accounting system.
6. Company Establishment: The firm also extends its services towards establishment
of organizations and corporation. The firm helps in registration in company
registrar office as per the company act 2063, acquiring of certificate of
commencement of business, etc.
7. Tax Management: The firm also helps in tax management for organizations.
Organizations can acquire services like calculation of income tax, management of
Value Added Tax (VAT), Tax Deducted at Source, timely filing and payment of
tax to Inland Revenue Department, etc. Consultancy and Training the firm also
offers advising and counseling services on matters relating to accounting system,
tax procedures, company establishment, and numerous other financial matters.
The firm provides consultancy services in areas of Country Strategic Papers,
Restructuring policies and Internal Control System Development,
Mergers/Demergers, Financial Controller/ Due Diligence Review/Special Review
of various Infrastructure projects on behalf of commercial banks; Forensic Audits,
etc.

1.5 Organization Design and Structure:

The firm has around 51 staffs which includes 5 full time chartered accountants besides 2
partners who are also chartered accountants. Firm has 2 full time ACCAs, 2 MBAs and 36
staff which includes senior managers, CA Finalists, article trainees and four secretarial staff.
The firm’s organizational structure is more of a functional organization structure. The two
senior partners are in the top most level. There are two junior associates who fall just below
the senior partners... The different senior managers are assigned various functions/services
offered to the clients. There is no such thing like departments and division. The whole
organization can be viewed as an 11 single department and the work processes are done
through creation of teams/unit for particular work and service. The size and duration of team
depends upon the nature of service offered and the requirement of the clients. The orders,

5
command and decisions flows from top to bottom while the reporting is done through bottom
to top.

Fig 1.1

 Financial structure:

Since J.Mandal and Co. is a private partnership company, all the financial information and
reports are kept strictly confidential and handled by the partners only. So, financial structure
of the organization could not be identified since the organization denied providing any sorts
of financial information.

6
 Chapter-2

Theoretical Aspect of Auditing

7
 Auditors as an independent external agency, function to protect the shareholders rights by
aligning the interest of management with them. With numerous accounting frauds and
auditing failures, and vast development in corporate governance in recent decade, the
position of external auditor in corporate governance mosaic has ascended. They are
burdened now with new responsibilities and play an important role in this system. However,
Satyam fiasco provides us an opportunity to reassess the role of auditors in the Indian
corporate governance framework. Therefore, the article makes an endeavor to understand
the auditors’ governance role in conjunction with its statutory responsibilities in this
contemporary business environment. Auditors’ place in the Indian corporate regulatory
framework is also discussed, clarifying their conflicting position. The paper further discusses
the status of auditing in India and reforms proposed in the country to strengthen the role of
auditors in corporate governance.

2.1 Statutory Role Auditors:

According to the International Federation of Accountants (IFAC), objective of an audit

is to enable the auditor to express an opinion on whether the financial statement is
prepared in all material respects, in accordance with an identified financial reporting
framework (IFAC, 2010). The auditor’s opinion helps to determine the true and fair
financial position and operating results of an enterprise. This is considered as most accepted
role of the auditors, and mandated so by the corporate laws of most countries of the world
(Porter et. al., 2005; Jayalakshmy et al. 2005; Baker &Owen, 2002). In India also, the
auditor is cast with the responsibility of ensuring this aspect. Provisions relating
thereto are contained in Section 211 and Section 227 of the Indian Companies Act,
1956 ( herein Companies Act). According to Section 227(2): “The auditors shall make a
report to the members of the company on the accounts examined by him … and the
report shall state whether, in his opinion … the said accounts give the information
required by this Act in the manner so required and give a true and fair view….” Aforesaid,
clearly underlines the auditor’s statutory role of revealing the true and fair view on financial
position of the company to the shareholders and the potential investors. Auditor based on
their observation and judgment assesses the true economic value of an enterprise.

8
2.1.1Auditor’s Governance role in current framework:

With development of corporate governance codes and new statutes, the auditor’s role has
implicitly enhanced to a great extent, than only from the traditional role of assessing the true
and fair value of a corporation,. Cohen et al. (2002) are of the view that the external auditors
are an integral part of the corporate governance, and they are entrusted to adopt better
practices for further improving it. Utility of the auditors in corporate governance have been
much accentuated, as they are the first line of defense against any corporate exploitation
because of their job of verifying the company accounts. However, the auditing function
assumes much more importance in complex and competitive business environment, and the
auditors need to play vital role in vouchsafing the system, in both financial management and
other allied activities (Chakra borty, 2004).

2.1.2 Financial Reporting and Decision Making:

External audit is a crucial monitoring device in the financial reporting process. It is an

important corporate governance mechanism, which reduces information asymmetry and
disseminates reliable information to the shareholders (Chakra borty, 2004; Ash Baugh
and Warfield, 2003). There is a positive relationship between the quality of corporate
governance and the credibility of financial reporting (Cohen et al., 2004). Different people
and agencies now frequently utilize and rely upon the audited financial statement for taking
their financial decisions, particularly as a pointer of the current financial position and future
earning capacity of the company (FASB, 1978). High-quality financial audit significantly
reduces the risk that investors and creditors face with their investment decisions. However,
the investors decision assume significance in future if they prove detrimental to them due to
some material misstatement in the audited financial statement not detected by auditor
(Chakra borty, 2004).

2.2 Internal control and Risk Assessment:

In contemporary business environment, the external auditor can play a vital role in assisting
the management to develop appropriate risk management and internal control system in
the company (Gilliam, 2003; Holm and Larsen, 2007). The risk management along with
the internal control is now integral part of auditing standards around the world (ISA 315 and
330, IFAC), India (AAS 20) and some corporate governance codes like Sarbanes-Oxley Act
of United States. In Indian, the issue of internal control of a company is taken care by

9
provisions of the Manufacturing and Other Companies Order 1988 (Auditors’ Report).
Under this regulatory provision, the external auditor has to mention in their audit report
whether the company has appropriate internal control system placed that is matching with its
scale and nature of its business. Auditor can help corporate management to establish suitable
control system and risk management in diverse operational areas so that the Board of the
company can focus on appropriate areas and develop strategies for the same. Appropriate
internal control system assumes significance for proper utilization of resources and guard
against fraud & errors (Chakra borty, 2004, Porter et. al., 2005).

2.3 Future Viability of Business:

The auditor shoulders another important responsibility of assessing the enterprise future
earning capacity and viability to carry its operation in the future. The feature has been
integral part of the auditing standards around the world (ISA 570, IFAC; AAS 16 India).
Auditor keeping in view the going concern principle, issues a qualified or unqualified
report about the future viability of the business, which assumes significance for decision
making of the current shareholders and potential investors. Under provisions of Section
227(3) (e) of the Companies Act, the auditor’s report shall stipulate thick in type or in
italics the observations made by the auditors which may have an adverse effect on the
functioning of the company.

2.4 Compliance with Laws and Regulation:

SEBI has entrusted the statutory auditors of the company in complying with the Clause
49 of Listing Agreement, which has been backbone of the corporate governance for the
listed companies in India. The auditor certifies the corporate governance report of the
company prepared alongside the annual reports, annexed to directors’ report. “The
intention of SEBI depicts the reliance placed on the auditors to ensure proper corporate
governance in the Company so that investor’s interest can be protected” (Chakra borty,
2004). External auditor also give their opinion on conformity of the financial reports of the
company with Indian accounting standards (Clause 49). The auditor’s has vital duty of
certifying the director disqualification from appointment. Under the Section 227(3) (f), the
auditor shall also report whether any director is disqualified from being appointed as director
under section 274(1) (g)

10
 Chapter 3:

Practical Aspects of Financial Auditing

Through IFRS at J. Mandala and Co:

11
Financial statements are prepared to provide useful information in making business and
economic decisions (Dugan, Cookson, &Celia, 2007). This information is important for the
users, as they use the statements to assess the financial condition and performance of related
companies (Ahmed & Hossain, 2010). In other to improve the quality of information
disclosed in the financial reports and safeguard the interests of shareholders, an independent
examination of the financial affairs of the company becomes mandatory in the case of public
companies. This role is carried out by the external auditor usually appointed based on the
decision of the board. Farouk and Hassan (2013) observed that achieving quality financial
reporting depends on the role that the external audit plays in supporting the quality of
financial reporting of quoted companies.

3.1 IFRS adoption procedure in India:

To excuse bookkeeping rehearses in the nation, the Indian government in 1949, built up
Institute of Chartered Accountants of India by passing ICAI Act, 1949. Bookkeeping
Standard Board was constituted by ICAI in 1977 altogether to create congruity among the
broadened bookkeeping arrangements and practices in India.

There is a stages in the process which was set around the bookkeeping experts in India which
are outlined below:

Step 1 – IFRS Impact Assessment: This is the initial step. In this progression the firm will
evaluate the effect of IFRS appropriation on Accounting and Reporting issues, on procedures
and frameworks, and on center business of the elements. At that point the firm will locate the
key transformation dates according to IFRS preparing arrangement has set down. As and
when the preparation plan is set up, the firm should distinguish the important Financial
Reporting Standards which will apply to the firm and furthermore the varieties among the
present money related reporting. Standards being trailed by the firm and IFRS both.

Step 2 – Preparations for IFRS Implementation: This is the second step of the
procedure, which will complete such exercises required for IFRS execution handle. At that
point the firm will change the interior revealing frameworks and procedures. IFRS first
manages the selection and usage of first time reception handle.

12
Step 3 – Implementation: This is the last stride of the procedure which manages the
genuine execution of IFRS. The underlying period of this step is to set up an opening Balance
Sheet at the date of move to IFRS. To comprehend the genuine effect of the transition from
the Indian Accounting Standards to IFRS is to be produced. This will take after the full use of
IFRS as and when it is required. At the underlying phase of execution of IFRS requires parcel
of preparing and different specialized difficulties may be experienced. The smooth execution
of the move from Indian Accounting Standards to IFRS, normal training to personals and
recognize the issues while doing the usage.

 IFRS ACTIONS REQUIRED TO FACE THE CHALLENGES

1. To give occurrence direction on bookkeeping issues and issues, the ICAI ought to issue
direction notes on the matters where bookkeeping experts will have quandary.

2. To attempt essential changes required in different statutory arrangements, team ought to be

shaped to recommend alterations in existing arrangements.

3. To encourage instruction of individuals, ICAI ought to teach individuals by directing

workshops and courses. It has been begun to some degree.

4. To fathom questions of individuals, ICAI ought to shape region wise master consultative
councils.

3.2 IFRS Issues and Challenges:

Toward the end a few standards should be altered, actualizes or expel in the Indian GAAP.
For instance, utilization of pooling of interests strategy in representing business mix is not
accessible in the standards of IFRS. Accordingly it ought to be dispensed with from Indian
GAAP. In this way there are a few difficulties that will be confronted in transit of IFRS
joining and these are mainly:-

1. Difference in GAAP and IFRS: Adoption of IFRS implies that the whole arrangement of
money related explanations will be required to experience an extraordinary change. The
distinctions are wide and profound routed. It would be a test to achieve consciousness of
IFRS and its effect among the clients of money related explanations.

13
2. Issue of GAAP Reconciliation: The Securities Exchange Commission (SEC) laid out two
choices in its proposition one requiring the conventional IFRS first-time appropriation
compromise, the other requiring that progression in addition to an on-going unaudited
compromise of the budgetary articulations from IFRS to U.S. GAAP which is unmistakably
more expensive approach for organizations and for speculators.

3. Training and Education: Lack of preparing offices and scholastic courses on IFRS will
likewise posture challenge in India. There is a need to confer instruction and preparing on
IFRS and its application.

4. Legal and Regulatory considerations: Currently, the announcing prerequisites are

administered by different controllers in India and their arrangements abrogate different laws.
IFRS does not perceive such abrogating laws. The administrative and legitimate necessities in
India will represent a test unless the same is been tended to by separate administrative.

5. Taxation: IFRS meeting would influence the vast majority of the things in the monetary
articulations and thusly the assessment liabilities would likewise experience a change.
Consequently the tax collection laws ought to address the treatment of duty liabilities
emerging on union from Indian GAAP to IFRS.

6. Fair esteem Measurement: IFRS utilizes reasonable incentive as an estimation base for
esteeming a large portion of the things of money related proclamations. The utilization of
reasonable esteem bookkeeping can bring a considerable measure of shakiness and
preference to the budgetary articulations. It likewise includes a great deal of diligent work in
touching base at the reasonable esteem and valuation specialists must be utilized.

7. Re-arrangement of Contract: The contracts would need to be re-arranged which is

likewise a major test. This is on the grounds that the financial results under IFRS are
probably going to be altogether different from those under the Indian GAAP.

8. Reporting systems: Companies would need to guarantee that the current business
revealing model is revised to suit the announcing prerequisites of IFRS. The information
systems ought to be intended to catch new requirements related to settled resources, section
disclosures, related party exchanges, and so forth.

 MEASURES TAKEN TO ADDRESS THE CHALLENGES:

14
1. For changes required in guidelines and directions of various administrative bodies, draft
proposals have been put before Accounting Standard Board.

2. The ICAI issued 30 rules of accounting standards, with a view to determine different
complicated issues emerging in the usage of new bookkeeping measures.

3. Guidance notes have been issued by ICAI for providing mediate direction on bookkeeping
issues.

4. To encourage talks at class, workshops, etch. ICAI has issued foundation material on
recently issued accounting gauges.

5. For the reason for helping its individuals, the ICAI council has framed a specialist
counseling board of trustees to answer inquiries from its individuals. Besides to confront the
difficulties we have to make more compelling strides like we ought to manufacture
satisfactory IFRS aptitudes experts by putting resources into preparing forms for Indian
bookkeeping experts to deal with the transformation ventures for Indian corporate. This
should be possible by research on impact of IFRS change in various nations and brief
learning of IFRS ought to be included into the reviews for expert courses with overall most
recent illustrations.

15
 Chapter 4:

RESEARCH METHODOLOGY

16
4.1 Objectives of Study:

The main objective of this study have been stated below:

 To study the implications of importance of IFRS in the present situation and the
process in adopting IFRS.
 To study the prospect of International Financial Reporting Standards will affect the
Indian corporate

4.2 Data collection

The data which is collected for the purpose of the study is divided into two basis.

4.3 Primary Data:-

Interaction with the Senior Auditing Manager .Set of questions asked to other staff members
working within J Mandala& co.

4.4 Secondary Data:-

Below are the sources which will be referred to under the secondary data:
1. Books
2. Journals
3. Research Papers
4. Articles
5. Websites

Limitations of the Study: - The time confined for study is very limited which does not enable
to make a comprehensive study. Non-availability of suitable respondents for interviewing
during the period at which project has been undergone.
Methodological and practical aspects of investment analysis, and the presence of
Uncertainty or problems in investment activity periodically makes this issue topical.

4.5 Sample size and design

A sample of 30 people was taken on the basis of convenience. The actual consumer was
contacted on the basis of random sampling.

17
4.6 Research period
Research work is only carried for 45 days.

4.7 RESEARCH METHOD

The method includes the data collection method, nature and format of questionnaire.
Research method contains at least five parts. The research is conducted to collect the needed
information and develop a research plan.

4.8 Limitation
One of the common evils associated with stock exchange operations is the
excessive speculation.
 You know that speculation implies buying or selling securities to take
advantage of price differential at different times.
 The speculators generally do not take or give delivery and pay or receive full
payment.
 They settle their transactions just by paying the difference in prices. Normally,
speculation is considered a healthy practice and is necessary for successful
operation of stock exchange activity... In the process, genuine investors suffer
and are driven out of the market.

18
 Chapter 5:
Analysis & Graphical presentation of Data

19
The analysis of the samples collected from 30 respondents is presented below in the form of
bar diagrams Therefore; I have covered the key points of the questionnaire and have
presented the data collected below:

1. Will the Implementation of IFRS be effective in the country?

4
0

11 Strongly disagree
Diagree
Neither disagree nor agree
Agree
Strongly agree

15

Analysis- from the aforesaid bar diagram, it is clear that the adoption of IFRS will bring a
significant change in the whole accounting system of our country. Therefore 26 respondents
said that there will be a huge change in the Indian accounting system after the
implementation of IFRS

20
2. Accuracy & reliability of accounting information will be enhanced?

3
0
1

11 Strongly disagree
Disagree
Neither disagree nor agree
Agree
Strongly agree

15

Analysis: from the above table, it shows that mainly 26 respondents agree to the fact that
IFRS will bring more accuracy and reliability in the accounting system of India.

21
3. Better inter- company comparison of financial statements will take
place

10
Strongly disagree
Disagree
Neither disagree nor agree
8
Agree
Strongly agree

0 8

Analysis: from the above graph it is quite clear that most of the respondent’s shows that
majority agree that implementation of IFRS in India will help in better company financial
statement comparison.

22
4. It will facilitate better business risk management?

0
2

8
Strongly disagree
Disagree
10
Neither disagree nor agree
Agree
Strongly agree

10

Analysis- The bar diagram shows that majority of respondents agree that IFRS will lead
to better risk management in India and Indian companies.

23
5. Help in harmonizing internal and external reporting by creating a
single accounting language?

5
10 Strongly disagree
Disagree
Neigher disagree nor agree
Agree
Strongly agree

10 3

Analysis: from the above graph it is clear that there may not be effective harmonization
of the external and internal reports as IFRS still needs to be introduced to the Indian
accountants and the accounting system.

24
6. Better access to capital market (including foreign investors) will also
be there:

00

10
Strongly disagree
Disagree
Neither disagree nor agree
Agree
Strongly agree

15

Analysis: Majority of respondents agree to the fact that IFRS will help in accessing the
capital market better specially in case of foreign investors and so 15 respondents in all
agree to the aforesaid fact.

25
7. Convergence of IFRS throwing light upon healthy relationship for
international business.

0 0

10
Strongly disagree
Disagree
Neither disagree nor agree
Agree
Strongly agree

15

Analysis- from the above graph depicts that majority of 20 respondents agree about
IFRS implementation throwing light upon healthy relationship for international business
in India. Remaining 10 members neither disagree nor agree.

26
8. Harmonization of accounting practices has led to the flow of foreign
capital towards Indian business.

00

10
Strongly disagree
Disagree
Neither disagree nor agree
Agree
Strongly agree

15

Analysis: from the above graph depicts that majority of 20 respondents agree about
IFRS implementation Leeds to inflow of foreign. Remaining 10 members neither
disagree nor agree.

27
9. Implementation of IFRS in India helps in teaching morals and
straightforwardness into book keeping rehearses:

3
0
1

11 Strongly disagree
Disagree
Neither disagree nor agree
Agree
Strongly agree

15

Analysis: from the above table, it demonstrates that there are various obstacles in Indian
business to execute IFRS. 25 respondents concur with this announcement in view of
operational challenges. Other 5 respondents not concurred.

28
10. Do you think IFRS adoption will ensure more disclosure practices and
transparency in Indian companies?

Strongly disagree
Disagree
10
Neither disagree nor agree
Agree
Strongly agree

10

Result: From the above representation IFRS implementation will lead to more
transparency in Indian companies.

29
Chapter 6:

Findings

30
The usage of IFRS at J. Mandala& Co., leads better monetary data for both shareholders and
controllers, it upgrades equivalence, enhances straightforwardness of recorded outcomes,
improves capacity to secure worldwide posting, dealing with the worldwide operations and
diminished cost of capital.

1. Better Access to cross-outskirt Capital Markets

2. Subjective Reporting

3. Disposal of numerous Reporting

4. Less demanding Global Markets Comparability

 PROBLEMS AND CHALLENGES: Every change is meticulous. Despite a few

advantages, there will be a few difficulties that will be confronted in transit of IFRS
meeting by the Indian corporates.

1. Preparing

2. Legitimate Aspect

3. Tax collection Provisions

4. Reasonable esteem Concept

5. Announcing framework

6. Varieties in GAAP and IFRS

31
Chapter 7:
Conclusion

32
Harmonization of accounting practices aims at bringing down the disparities that exists in the
financial reporting system worldwide due to socio-economic, political cultural and legal
diversities among nations. The objective of consolidation is to facilitate the investors and
other stake holders getting comprehensive picture of the economic resources of the nation.
Despite the continual effort by the different organization to achieve international harmony in
accounting and financial reporting, a complete harmony has not been possible so far owing
factors like absence of strong professional accounting bodies in some nations economic
consideration, nationalization varied objectives of financial reporting and prevalence of
different legal system in different countries.

Therefore form the above survey and the analysis stated by me above it is clear that IFRS and
its adoption in India is not only beneficial to Indian companies but also will facilitate entering
in foreign capital market as a harmonized standard for accounting will definitely lead to
better, efficient and effective accounting in all the companies.

33
Chapter8:
Suggestions

34
In light of discoveries of the above research, the accompanying recommendations were made
for issues in union with International Financial Reporting Standards':

a. To guarantee execution of International Financial Reporting Standards in India

three choices are proposed.
b. Like some different nations for instance China as opposed to uniting all
bookkeeping benchmarks by time plan in light of their turn over, it is
recommended to begin to joining with IFRS for every standard one by as per
think plan based.
c. It is conceivable to apply all bookkeeping models in one time by slight
adjustment like Australia that is utilizing AIFRS or European Union which
have done alteration on IAS39. 189
d. Universities and higher instructive establishment may offer graduate and post
graduate program in IFRS to encourage merging with International Financial
Reporting Standards in India.
e. To encourage joining with International Financial Reporting Standards in
India high caliber of bookkeeping instruction makes a difference. Thus
Universities may support look into on IFRS.
f. Promotion exercises by ICAI and MCA by leading instructive workshop,
classes and meetings to make clients and speculators mindful of money related
proclamations arranged under International Financial Reporting Standards.
g. Government may make sound and clear financial arrangements for Foreign
Direct Investment (FDI). • Clear Government strategies for supporting little
and medium undertakings (SMEs) empower organizations with execution of
International Financial Reporting Standards (IFRS).
h. Amendments and alterations of Indian Companies Act 2013 incorporate
arrangement to encourage meeting with International Financial Reporting
Standards.
i. Amendments and adjustments for Provisions estimation in Income Tax Act
1961 relating Fair esteem estimation and conceded assess under segment 145
to encourage IFRS joining in India. 190
j. Transparency in monetary revealing under International Financial Reporting
Standards (IFRS) encourages joining.

35
k. Conducting proficient courses for sanctioned bookkeeper and the individuals
who are not acquainted with IFRS to forestall of early retirement and loss of
master HR.
l. Implementation of proposed Indian bookkeeping models (Ind.AS) to
encourage merging with International Financial Reporting Standards.
m. Encouraging Banking division, Insurance area and furthermore telecoms
segment to actualize IFRS through approaches changes.
n. Announcing clear progression arrangements by the Government for
empowering organizations with IFRS.
o. Announcing clear Privatization strategies by the Government for empowering
organizations with IFRS.
p. Encouraging of MNC organizations for posting in their securities exchange so
it might get an authorization for usage of IFRS in such organizations.
q. Encouraging of outside organizations to come to India for interest in Indian
market it might encourage of execution of IFRS in India.

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