Abstract

For the economic development of a country, investments play an important role as more investments in an economy generate more business, more production, and more opportunities to grow. To sustain investors’ trust in an economy the sound financial standard reporting standards are needed. IFRS are considered as sound global financial reporting language that helps to improve comparability, transparency in reporting, India is on the path of globalization, there is a high requirement for convergence of Indian accounting standards with IFRS. The accounting standards in India are drafted by the Institute of chartered accountant of India (ICAI). The institute is committed to the convergence of its standards with IFRS. However; there are some differences between local standards and IFRS due to some unavoidable reasons viz. legal and local requirement, economic requirement, level of awareness, conceptual difference, etc. Thus it can argue that even there has been a lot of discussion on the convergence of Indian accounting standards with IFRS, it is difficult to adopt IFRS considering the indigenous problems. This research paper is an attempt to reveal the Indian scenario regarding the adoption of IFRS. The benefits and challenges associated with the adoption are discussed and measures are also suggested for proper implementation of IFRS in India.