The Ministry of Corporate Affairs (MCA) mandated the Ind AS adoption for listed companies in their financial reporting from 2016-17. Several companies published their annual reports according to the Ind AS. Transition phase is the best time to capture the efficiency of any practice. Being the first year of adoption, the companies have shown their financial results both as per Indian GAAP and Ind AS. Present study compares 10 financial ratios under Ind AS and IGAAP as reported in their financial statement at the end of the year 31st March 2017. The study explains the changes in the financial statement items and their significance level after adoption of Ind AS in India. The results indicated change in revenue significant at 5% level, other changes were not found to be significant. Applying cross sectional sample t-test to analyze the significance level of the difference between Ind AS and IGAAP tests hypothesis. Out of 10 ratios, 9 were found to be statistically not significant and one is relatively significant. Further, This shows that adoption of Ind AS does not have significant impact on the performance indicators of the companies.
The Effect of Mandatory Ind As Adoption on Financial Statements & Performance Indicators of Select Listed Companies In India
Journal of Accounting and Finance
Vol. 32 - No. 1