ISSUES AND CHALLENGES IN IMPLEMENTATION OF IND-AS, ROLE OF IND-AS IN THE NEW EMERGING ACCOUNTING WORLD

Abstract

Trade and Commerce have increased rapidly to the extent of creating a global market. In the recent days Globalization has reached the next level. The accounting standards merely intent to harmonize the diverse accounting policies from around the world, in order to bring efficient and easy worldwide trade and development. Indian AS’s main objective is to remove variations in the treatment and bring standardization by converging with IFRS (International Financial Reporting Standards). In its journey of implementation, it faces many challenges. As there are many variations from the existing AS and the present one, the transition is quite difficult for companies to follow. One of the main challenges happens to be the transition from Historical value to Fair Value. The financial sector has long since been accustomed to using Historical value, and the implementation of Fair Value computation is quite difficult. Also, the lack of knowledge in IFRS comes as a major hindrance as there are no training, which in turn causes a difficulty for users. The Ind AS also will bump and knock down the profits or losses of the firm, with respect to standardizing. These may cause temporary difficulties in adoption. Despite having such challenges, the Ind AS performs its roles as an economy growth instigator, in Investor exposure, Globalization and in maintaining Consistency, and shall bring about a new era in accounting.