B S R

IFRS Convergence in
India
Group 1
Section F
B S R
CONTEXT FOR DISCUSSION
IFRS: The Global
Perspective

IFRS India Roadmap

Challenges and
practical insights

Best practices for
convergence



IFRS The Global Perspective
3
IFRS Now a Truly Global Standard
By 2011, 150 countries have adopted IFRS, including China, Brazil and Korea
Accepted and adopted across more than 100 countries
Push by U.S. SECs decisions
To drop reconciliation requirement
for Foreign Private Issuers
preparing IFRS financial
statements
Proposal for IFRS transition for
U.S. domestic companies
between 2014 to 2016; with early
adoption option for certain very
large companies
IASB-FASB convergence programme
Ongoing convergence programme
Convergence Drivers
Capital Markets

Regulatory requirements

Internal controls

Performance evaluation


5
IFRS comprises
International Accounting
Standards (IAS)
International Financial Reporting
Standards (IFRS)
Standing Interpretations
Committee (SIC)
International Financial Reporting
Interpretations Committee (IFRIC)
Overview of IFRS
International Accounting Standards
International Financial Reporting Standards
Standing Interpretations Committee
International Financial Reporting
Interpretations Committee
Benefits of convergence
Widespread agreement on improvement in comparability
Improvement of quality of financial reporting and trust in
the financial statements
Alignment of external and internal reporting
Globalization of capital markets and reduced cost of
capital
One financial language across different locations

IFRS India Roadmap
9
Why IFRS Convergence?
Unavoidable in globalised economy
Condition for listing abroad including GDRs and ADRs
Pre requisite for any joint venture or business relationship
Assists in external borrowing and in-bound investment
Better model worthy of emulation
On adoption we can play a role in the standard setting
process
Need to have a common language
Two separate sets of Accounting Standards to co-exist
Announcement by the Ministry of Corporate Affairs (MCA) dated January 22, 2010
IFRS converged standards


Existing Indian Accounting
Standards


Other amendments to the Companies Act (including, e.g. Schedule VI and Schedule XIV) will be undertaken in a time
bound manner to facilitate the process of convergence.
Timelines for convergence
Phase 2
1
st
April 2011 1
st
April 2013 1
st
April 2014
Phase 3
Companies included in the Nifty 50;
Companies included in the Sensex 30;
Companies which have shares or other
securities listed on stock exchanges
outside India and
Companies (whether listed or not)
which have a net worth in excess of
Rs1,000 crores.
Phase 1
All companies (whether listed
or not) with a net worth in
excess of Rs.500 crores but
less than Rs1,000 crores.




All listed companies with net
worth less than Rs.500 crores




Clarifications:
Non-listed companies which have a net worth less than Rs.500 crores and whose shares or other securities are not listed on
stock exchanges outside India; and other defined Small and Medium Companies (SMC) will not be required to follow the IFRS
converged standards. However, such entities may also voluntarily opt to follow the IFRS converged standards.
Indian approach to IFRS
Convergence not adoption
Two sets of accounting standards
Public Interest Entities
Phased approach




IFRS Convergence
India Opted for convergence & not adoption of IFRS

Two sets of Accounting Standards
IFRS Converged Indian Accounting Standards Ind-AS
Existing Accounting Standards AS


PRESESNT STATUS
35 Ind AS have been notified on 25-2-2011
Applicability date yet to be notified

IND AS
Scheme of Ind AS
Numbering pattern



IAS/IFRS converged
Ind AS No. Title IAS/IFRS
01 Presentation of Financial Statements IAS 1
02 Inventories IAS 2
07 Statement of Cash Flows IAS 7
08 Accounting Policies, Changes in Accounting
Estimates and Errors
IAS 8
10 Events after the Reporting Period IAS 10
11 Construction Contracts IAS 11
12 Income taxes IAS 12
16 Property, Plant and Equipment IAS 16
17 Leases IAS 17
IAS/IFRS converged
18 Revenue IAS 18
19 Employees Benefits IAS 19
20 Accounting for Government Grants and
Disclosure of Government Assistance
IAS 20
21 The Effects of Changes in Foreign Exchange
Rates
IAS 21
23 Borrowing Costs IAS 23
24 Related party disclosures IAS 24
27 Consolidated and Separate Financial
Statements
IAS 27
18 Revenue IAS 18
19 Employees Benefits IAS 19
28 Investments in Associates IAS 28
IAS/IFRS converged
29 Financial Reporting in Hyperinflationary
Economies
IAS 29
31 Interest in Joint Ventures IAS 31
32 Financial Instruments: Presentation IAS 32
33 Earnings per share IAS 33
34 Interim Financial Reporting IAS 34
36 Impairment of assets IAS 36
37 Provisions, Contingent Liabilities and
Contingent Assets
IAS 37
29 Financial Reporting in Hyperinflationary
Economies
IAS 29
31 Interest in Joint Ventures IAS 31
32 Financial Instruments: Presentation IAS 32
IAS/IFRS converged
38 Intangible Assets IAS 38
39 Financial Instruments: Recognition and
Measurement
IAS 39
40 Investment Property IAS 40
101 First time adoption of Indian Accounting
Standards
IFRS 1
102 Share-based payment IFRS 2
103 Business Combinations IFRS 3
104 Insurance Contracts IFRS 4
105 Non-current Assets Held for and
Discontinued Operations
IFRS 5
106 Exploration for and Evaluation of Mineral
Resources
IFRS 6
IAS/IFRS converged
107 Financial Instruments: Disclosures IFRS 7
108 Operating Segments IFRS 8
IFRIC/SIC Converged
IndAS No. Annexure
No.
Annexure to Ind AS and Title IFRIC/SIC
10 A Distributions of Non-cash Assets to
Owners
IFRIC 17
11 A Service Concession Arrangements* IFRIC 12
11 B Service Concession Arrangements:
Disclosures*
SIC 29
12 A Income TaxesRecovery of Revalued
Non-Depreciable Assets
SIC 21
12 B Income Tax: Changes in the tax status
Income Taxes Changes
SIC 25
16 A Changes in Existing
Decommissioning, Restoration and
Similar Liabilities
IFRIC 1
17 A Operating leases-Incentives SIC 15
17 B Evaluating the Substance of
Transactions
Involving the Legal Form of a Lease
SIC 27
17 C Determining whether an Arrangement
contains a Lease*
IFRIC 4
IFRIC/SIC Converged
18 A RevenueBarter Transactions Involving Advertising
Services
SIC 31
18 B Customer Loyalty Programmes IFRIC 13
18 C Transfers of Assets from Customers IFRIC 18
19 A Ind AS 19-The limit on a Defined Benefit Asset,
Minimum Funding requirements and their interaction
IFRIC 14
20 A Government Assistance: No Specific Relation to
Operating Activities
SIC 10
27 A ConsolidationSpecial Purpose Entities SIC 12
29 A Applying the Restatement Approach under Ind AS 29
Financial Reporting in Hyperinflationary Economies
IFRIC 7
31 A Jointly Controlled Entities Non-Monetary
Contributions by Venturers
SIC 13
34 A Interim Financial Reporting and Impairment IFRIC 10
37 A Rights to Interests arising from decommissioning,
Restoration and Environmental Rehabilitation Funds
IFRIC 5
IFRIC/SIC Converged
37 B Liabilities arising from
Participating in a Specific
Market Waste Electrical and
Electronic Equipment
IFRIC 6
38 A Intangible AssetsWeb Site
Costs
SIC 32
39 C Reassessment of Embedded
Derivatives
IFRIC 9
39 D Hedges of a Net Investment in a
Foreign Operation
IFRIC 16
39 E Extinguishing Financial
Liabilities with Equity
Instruments
IFRIC 19
Key Carve Outs in Ind AS
1. IAS/IFRS not converged with
While converging with IFRS, the following
IAS/IFRS have not been converged with:
IAS 26: Accounting and Reporting by
Retirement Benefit Plans (not applicable for
Companies)
IAS 41: Agriculture (carve out)
IFRS 9: Financial Instruments (not mandatory
at present)

23
Key Carve Outs in Ind AS
2. SIC/IFRIC not converged with
SIC 7: Introduction of the Euro (not required for India)
SIC 29: Service Concession Arrangements: Disclosures
(applicability deferred, carve out)
IFRIC 2: Member's Shares in Co-operative Entities and
Similar Instruments (not applicable for Companies)
IFRIC 4: Determining Whether an Arrangement Contains a
Lease (applicability deferred, carve out)
IFRIC 12: Service Concession Arrangements (applicability
deferred, carve out)
IFRIC 15: Agreements for the Construction of Real Estate
(carve out)

24
Key Carve Outs in Ind AS
3. Removal of options not amounting to
carve out or departure from IFRS
Single statement presentation of the
statement of profit and loss
Classification of expenses in the statement of
profit and loss by nature of expense method
No option of carrying investment property at
fair value
Recognition of actuarial gains and losses in
Other Comprehensive Income


25
Key Carve Outs in Ind AS
4. Additional options provided which if
exercised will lead to carve out/departure from
IFRS
Option to use Indian GAAP carrying values on the
date of transition as the deemed cost for
property, plant and equipment, intangible assets
and investment property
Option to defer exchange differences on long
term foreign currency monetary assets and
liabilities and recognizing the same over the
period of such asset or liability


26
Key Carve Outs in Ind AS
5. Mandatory carve outs as no option is
provided in Ind AS
Revenue recognition for real estate sector on
the basis of percentage completion method
Accounting for the equity conversion option of
a FCCB as an equity component
Bargain purchase in case of business
combination to be treated as capital reserve
except in certain cases where it can be
credited to Other Comprehensive Income


27
IFRS
in Europe
28
Since 2005 all listed companies in the E.U. must
comply with IFRS
In Continental Europe, IFRS adoption represents a
major change: replacement of stakeholder-oriented
accounting regulations by market-oriented standards
heavily influenced by the Anglo-Saxon accounting
model
Aim of this presentation: Review the empirical
evidence on the economic consequences of IFRS
adoption
The expected consequences of IFRS
adoption
Information asymmetry should decrease:
IFRS are more market-oriented
IFRS disclosure requirements are larger
Earnings management should decrease:
IFRS are more precise
They admit a limited number of options
Hidden reserves are prohibited
Accounting data should be more value
relevant
Value relevance: Ability of accounting data to
reflect contemporaneous market prices or returns
IFRS-based earnings should be more value
relevant:
IFRS are more market-oriented
Earnings management is more difficult under IFRS
IFRS make a larger use of fair value
The cost of capital should decrease
Effect on information asymmetry
Has the bid-ask spread declined?
YES:
Germany: Leuz & Verrecchia (JAR 2000), Gossen & Sellhorn (WP
2006): Companies using IFRS exhibit smaller bid-ask spreads than
those using German GAAP
Europe: Platikanova & Nobes (WP 2006): On average, the bid-ask
spread declines after IFRS adoption
BUT:
Switzerland: The effect is limited to small companies: Dumontier &
Maghraoui (CCA 2006)
Are analysts' forecasts more accurate?
YES:
Ashbaugh & Pincus (JAR 2001): Analyst forecast accuracy improves
after IFRS adoption
Hodgdon et al. (JIAAT 2008): Compliance with IFRS reduces analyst
forecast errors
Germany: Ernstberger et al. (WP 2008): Forecast accuracy is higher for
estimates based on IFRS or US GAAP data than for those based on
German GAAP figures

NO:
Germany: Maghraoui (PhD 2008): Compliance with IFRS does not
reduce the dispersion of analyst forecasts or forecast errors
Europe: Cuijpers & Buijink (EAR 2005): Dispersion of analyst forecasts
is higher for firms using IFRS or US GAAP than for those using local
GAAPs
Effect on earnings management
Does IFRS compliance restrict earnings
management?
NO:
Germany: Van Tendeloo & Vanstraelen (EAR 2005): IFRS adopters
do not present different earnings management behavior
compared to companies reporting under German GAAP
Sweden: Paananen (WP 2007): IFRS adoption does not reduce
income smoothing.
Germany: Lin & Paananen (WP 2008): Earnings management is
higher in the post IFRS-adoption period
YES:
Barth et al. (JAR 2008): In the post-adoption period, firms applying
IFRS evidence less earnings management
Effect on the value relevance of accounting data
Has value relevance of earnings increased following
IFRS adoption?
YES:
Barth et al. (JAR 2008): Firms applying IFRS exhibit more value
relevant accounting figures than other companies
Germany: Bartov et al. (JAAF 2005): The value relevance of IFRS-
based earnings is higher than that of German GAAP-based
earnings
Germany: Jermakowicz et al. (JIFMA 2007): The value relevance of
earnings is higher for DAX-30 companies using IFRS or US GAAP
NO:
Germany: Hung & Subramanyam (RAS 2007): IFRS adoption has no
effect on the value relevance of book value and net income
Sweden: Paananen (WP 2008): The value relevance of accounting
figures is not affected by IFRS adoption
Germany: Lin & Paananen (WP 2008): The value relevance of
equity and earnings decreases after IFRS adoption
Effect on the cost of capital
Has the cost of equity capital declined after IFRS adoption?
YES:
Germany: Ernstberger & Vogler (WP 2008): The cost of equity
capital is lower for companies that adopted IFRS or US GAAP
Kim & Shi (WP 2007): The cost of equity capital is significantly
lower for IFRS adopters
NO:
Europe: Cuijpers & Buijink (EAR 2005): No evidence of a lower
cost of equity capital for IFRS adopters
Germany: Daske (JBFA 2006): Voluntary IFRS adopters do not
exhibit lower cost of equity capital

Has the cost of debt declined after IFRS adoption?
YES:
Kim et al. (WP 2007): IFRS adopters have lower interest rates,
larger amount of loan facility, less restrictive loan covenants, and
they attract more foreign lenders
Summary of the empirical evidence
No clear conclusion can be drawn from these studies
because:
The evidence is mixed
Many studies were conducted in a single country
(Germany in particular)
Most studies deal with voluntary adoption
Explaining the conflicting evidence
The impact of IFRS adoption is a function of the
degree of compliance with IFRS
Vogel et al. (WP 2008): There is considerable variation in
the level of IFRS compliance among European companies
(compliance index ranging from 13% to 100%)
Daske et al. (WP 2007): "Serious" IFRS adopters
experience stronger effects on the cost of capital and
market liquidity than "label" adopters
Hodgdon et al. (JIAAT 2008): Compliance with the
disclosure requirements of IFRS enhances the ability of
financial analysts to provide more accurate forecasts
The impact of IFRS adoption is a function of the firm's
incentives to comply with IFRS

Germany: Christensen et al. (WP 2008): Improvements in accounting
quality are confined to firms with incentives to adopt IFRS

Daske et al. (JAR 2008): The capital-market benefits of IFRS adoption
occur only in countries where firms have incentives to be transparent
and where legal enforcement is strong
Wang & Yu (WP 2008): Better accounting standards are helpful only in
countries with proper reporting incentives i.e. in common-law
countries, in countries with better shareholder protection and
effective legal enforcement

Kim & Shi (WP 2007): The cost of capital-reducing effect of IFRS
adoption is greater when the IFRS adopters are from countries with
weak institutional infrastructures
European Effects
The adoption of IFRS will probably not be sufficient
to standardize the quality of earnings throughout
Europe
Strong enforcement mechanisms (laws and
corporate governance systems) also are necessary
Adopting high quality standards might be a necessary
condition for high quality information, but not a
sufficient one (Ball et al., JAE 2003)
Case Study
Wipro
41
Scope
The study is based on secondary data on selected
variables sourced from the published annual reports
of Wipro for the year ended 31st March 2010. Wipro
had voluntarily prepared its annual report on the
basis of Indian GAAP and IFRS for the year ended
31st March 2010, wherein reconciliation of equity
based on Indian GAAP and IFRS is presented for the
opening Balance Sheet as at 1st April 2008 and for
Balance Sheet ended 31st March 2009
Hypothesis
1. There is no significant difference between financial
statement items based on Indian GAAP and IFRS for the
opening Balance Sheet as at 1st April 2008 by Wipro

2. There is no significant difference between financial
statement items based on Indian GAAP and IFRS for the
opening Balance Sheet as at 31st March 2009 by Wipro

3. There is no significant difference between Indian GAAP
and IFRS based accounting ratio for the fiscal year 31st
March 2009 by Wipro
Effect on Financial Ratios
ROE
ROA
TAT
NPR
Leverage
IGAAP IFRS
0.29
0.26
0.14 0.14
0.94
0.93
0.15 0.15
1
0.88
ROE ROA TAT NPR Leverage
Leverage ??
Leverage 12.00%
Value of Equity . 8.13%
Total Liabilities .. 4.28%
Debt Equity Ratio
Reason:
Return on Equity ??
ROE 10.34%
Value of Equity . 8.13%
Net Profit ... 0.61%
Amount of net income returned as a percentage of
shareholders equity
Reason:
Total Liability and Equity
Dividend provision not recognized under IFRS
Fair value measurement of
Available for sale investment
Share compensation expense
Reclassification between Equity and Total Liability
Accelerated amortization of stock compensation expense
in the initial years following the grant of options
Stock compensation expenses recognized in graded
manner on a straight line basis over the requisite vesting
period for the entire award
Share based payment
reserve
IFRS
IGAAP
Learning's
IFRS
IGAAP
Fair value Oriented Accounting
Balance Sheet Oriented Accounting
More Transparent Disclosures
Conservative Approach of Accounting
Challenges and
practical insights
49
B S R
B S R
What challenges to anticipate?
Skill Sets Judgment Fair value
Group
transition
Data
Capture
IFRS
Updates
Finance team
to be
conversant
with IFRS
end objective
to churn out
timely IFRS
Financial
Statements
for regular
reporting
Training
finance
personnel

Robust
support of
decisions
taken
Application of
management
judgment in
accounting
policies,
evaluation of
options under
IFRS (Eg,
determining
useful life of
assets / loan
provisioning in
absence of
rules)
Extensive use
of fair value
measurements
in certain
areas of
financial
instruments,
business
combinations,
etc.
Changes in
recognition
criteria &
extensive
disclosure
requirements
need
redesigning
of accounting
systems to
provide timely
information
IFRS itself is
evolving,
leading to
constant
updates and
changes in
existing
standards
Specialization
in fair
valuation

Regular
IFRS
accounting
updates
IFRS
compliant
data
requirements
from
subsidiary,
joint ventures
and
associates for
consolidation
purposes
Modification in
reporting
systems

Structured &
consistent
approach for
transition
What are the changes that have to be dealt with?
Technical GAAP difference
Conceptual
Embedded Derivatives
Fair value
Revenue recognition
Business combinations etc etc
Operational challenges
Estimated useful life of the assets Sch XIV?
ESOP intrinsic value v/s fair value
Disclosures
Schedule VI Not applicable
Additional disclosures IFRS 7, risk management, consolidation, etc.
(quantitative as much as qualitative)
Key decision to be taken
Early adoption
Comparatives
Key impacts on financial statements
Business combinations and consolidation
Financial Instruments
Changes in accounting policies and correction of errors
Presentation of financial statements
Business combinations and consolidation
Adoption of purchase accounting for almost all amalgamations
(accounted for at fair values)
Pooling-of-interests method severly restricted
Fair values on acquisition to be taken also on consolidation
Would reflect true goodwill
Goodwill and indefinite life intangibles No amortisation, annual
impairment testing
Impact of EBITA, P/E ratio, ROCE
IFRS Accounting Impact
Financial Instruments
Most financial instruments in balance sheet at FV
Investments to be categorized at fair value through profit or loss,
available for sale, held to maturity
Hedge accounting detailed conditions and documentation required
Debt-equity classification preference share capital meeting specified
conditions classified as liability
Impact of EBITA, P/E ratio, ROCE, debt equity ratio
IFRS Accounting Impact
Changes in accounting policies and correction of errors
Changes in accounting policy generally made by adjusting opening
equity and restating comparatives
Correction of errors generally made by adjusting opening equity and
restating comparatives
Restatement of comparatives and adjusting opening equity generally
not part of Indian GAAP at present
Impact of EBITA, P/E ratio, ROCE
IFRS Accounting Impact
Presentation of financial statements
Consolidated Statements
Primary statements include
Statement of changes in
equity or statement of
recognised income or
expense
No strict format but
Balance sheet classified
as current/non-current or
based on liquidity
income statement by
nature or function
Detailed accounting policy and
disclosures

IFRS Accounting Impact IFRS Accounting Impact
Stand-alone, but listed
companies and banks present
CFS also
No statement of changes in
equity or statement of
recognised income and
expense
Schedule VI format:
not fully on current/non-
current basis
Expense classification by
nature
Disclosures not as elaborate
as per IFRS
First time adoption when and what to start
Date of transition
= IFRS opening
balance sheet
1 April 2010
Comparative period
31 March 2011 31 March 2012
Reporting date
First IFRS financial statements
IFRS
Recognise IFRS assets / liabilities
Remove non-IFRS assets / liabilities
IFRS measurements
Adjust opening retained earnings
Comply with latest IFRS
Remember consistency
S
T
A
R
T

B
Y

Apply IFRS 1 standard
Ignore transitions in the individual standards
W
H
I
C
H

I
F
R
S
?

Breaking through some common myths
IFRS requires fair valuation of everything
IFRS lays too much emphasis on management judgment
IFRS reporting can be managed as a reconciliation / out of book exercise
IFRS was an important cause of the global financial crisis
Global standards like IFRS do not take into account local conditions
First-time transition rules allow an entity to clean up its act
IFRS will not change business actions
Best practices for convergence
B S R
How does one approach IFRS transition?
Rapid start to implementing work without a
structured assessment
Time to complete and/ or resources are
underestimated:
We will just switch to IFRS
Accounting rules are seen as pretty similar, but
small differences can matter a lot
Impacts of IFRS conversion are not addressed with
stakeholders
Lack of clarity about strategies for selecting the
various accounting options
Inability to provide information on all areas impacted
by IFRS (e.g. to analysts)
Lack of sufficient communication with auditors
Strong leadership and support for the IFRS implementation
project
Timing starting sufficiently in advance
Strong project management
Steering committee
Initial impact assessment
Training and knowledge transfer
Communication strategy
Holistic approach to evaluate impact beyond accounting
changes
Keeping Board involved and investors and analysts informed
Involve professionals with the right subject matter
specialization relating to IFRS, local GAAP, systems and
processes
Transfer of knowledge from advisors to the Company should
start early and occur regularly


IFRS is not just an accounting project
IFRS implementation requires a structured approach to
conversion
Critical success
factors
Project planning
Project structure and
governance
Auditor
involvement
stakeholders
Resource
management
Training
IT systems
IFRS will not be just an accounting project.
The use of IFRS will change how a business is managed and it will
change how and what companies communicate with their marketplace
How a companys peers use IFRS, and what policies they adopt, will
influence how that company is perceived and valued in the
marketplace
How a company manages its IFRS conversion will affect its business
and , potentially, market confidence in its reported information and its
share prices
It is not the strongest of the species that
survives, nor the most intelligent, but
the one most responsive to change.
Charles Darwin
Questions?
Thank you
0 50000 100000 150000 200000 250000
Goodwill
PPE and Intangibles
Available for Sale investment
Investment in equity accounted
Inventories
Trade receivables
Unbilled revenue
Cash and cash equivalents
Net tax assets
Other assets
Total Assets
Share capital and premium
Share application money
Retained earnings
Cash flow hedging reserve
Other reserves
Total Equity
Minority Interest
Loan and Borrowings
Trade Payables
Unearned revenues
Other liabilities and provisions
Total Liabilities
Total liabilities and equity
Chart Title
IFRS
IGAAP
References
1. Stent W, Bradbury M. and Hooks J.(2010) IFRS in New Zealand: Effects on Financial Statements and Ratios, Pacific
accounting Review, Vol 22, No 2, pp 92-107
2. Lantto A.M and Sahlstrom P (2009) Impact of International Financial Reporting Standard Adoption on Key
Financial Ratio, Accounting and Finance Vol 49, pp 341-361
3. Ball R.(2008) What is the Actual Economic Role of Financial Reporting available at http://ssrn.com/ abstract=1091538
4. Mingyi Hung, K.R. Subramanyam (2004) Financial Statement Effects of Adopting IFRS: The case of Germany
available at http://ssrn.com/abstract=622921
5. Amir,E.T.Harris and E.Venuti 1993 A comparison of the Value relevance of Us versus Non US GAAP Accounting
measure using Form 20F reconciliations. Journal of Accounting Reseearch 31(supplement):230-264
6. M.S. Turan and Dimple Transition from GAAP to IFRS An evidence from uk Journal of Accounting and Finance Volume
25, No 2 ,pp57-66
7. Capkun V. Jeny A.C Jeanjean T. and Weiss L.A (2008) Earnings management and value relevance during the Mandatory
Transition from Local GAAP to IFRS in Europe available at http://ssrn.com/abstract=1125716
8. Lantto A.M (2007) Does IFRS improve the usefulness of Accounting information on code law country?' available at
http:// ssrn.com/abstract=905218 retrieved on 10 August2010
9. Horton J.Serafeim G (2008) Does Mandatory IFRS adoption improve the information envirnmnet Harvard Business
School working paper No 1264101 available at http:// ssrn.com/abstract=1264101 retrieved on 7 August 2010
10. Hope O.k Jin and Kang (2006) Empirical Evidence on Jurisdictions that Adopt IFRSavailable at http://
ssrn.com/abstract=751264 retrieved on 7 August 2010
11. Sujatha B Accounting Standards in India: Towards convergence published by ICFAI
12. http:// www.article base.com/accounting-articles/working towards a global convergence of accounting standards-
1379167.html
13. IFRS: A quick reference Guide by Robert Krik
14. http:// online library.wiley.com/doi/10.1002/jcaf.20406/abstract
15. http://icai.org/resoucre
16. http://www.pwc.com/en-GX/gx/ifrs-reportingservices/pdf/viewpoint_convergence.pdf

IFRS impact beyond Financial Statements
Most aspects of the business can be
affected:
Processes and systems
Operations
Tax
Treasury

Examples include impact on:
Debt covenants
Compensation plans
Revenue contracts
Joint ventures and alliances
Investor communication