1. – Lj Integrated Mba, Lj University, Ahmedabad, Gujarat, India.
2. – Lj Integrated Mba, Lj University, Ahmedabad, Gujarat, India.
3. – Lj Integrated Mba, Lj University, Ahmedabad, Gujarat, India.
4. – Lj Integrated Mba, Lj University, Ahmedabad, Gujarat, India.
| Received
18-May-2023 |
Accepted
- |
Published
18-May-2023 |
The Ministry of Corporate Affairs of India made it mandatory to prepare the financial statements by following International Financial Reporting Standards converged accounting standards, that is, Ind AS, for Indian listed companies as well as non-listed companies having shareholder’s funds (net worth) equal to or above INR 500 Cr for the financial year commencing on 1st April, 2016. The present research provides an insight into the impact of IND-AS adoption on the financial statements of Indian listed companies across industries. The study attempts to find the statistically significant differences between companies’ Indian Generally Accepted Accounting Principles (GAAP)-based and IND-AS-based financial statements in terms of shareholder’s funds. The value of shareholders’ funds is obtained from the standalone financial statements constituted according to the two sets of accounting standards for the year in which the company adopted Ind AS. We attempted the secondary quantitative research in two steps: first, we tried to identify whether there was a percentage change in shareholder funds from GAAP to IND-AS. Secondly, we identify the percentage change is significant or not. The result of the research revealed a percentage change in the majority of the companies’ shareholder’s funds, that is, 87% of the sample size (1,288 companies). Further, it was also observed that the percentage change in shareholder’s fund was not significant.