Benefits of Adoption of IFRS in Indian Banking Industry: Perspective of Various Stakeholders

1. INTRODUCTION

International Financial Reporting Standards (IFRS) are specially designed as a typical worldwide language for internet business matters therefore business accounts are comparable and understandable across international borders. They're a result of growing international industry and shareholding and are especially essential for businesses with dealings in many places. They're progressively replacing the number of national accounting requirements. The guidelines being followed by accountants to keep publications of accounts that is relevant, reliable, understandable, and comparable as per the people internal or external. A economic reporting process dependent on good governance, high quality standards, and firm regulatory framework is the primary key to economic development. Certainly, good economic reporting requirements underline the confidence that investors place in fiscal reporting info and therefore play a crucial part in leading to the economic development of a nation. Needless to point out, internationally accepted accounting requirements play a significant part in this overall procedure. It's in this context which the role of an unbiased, worldwide standard-setting body like the International Accounting Standards. Board (IASB) is of vital importance. The primary goals of the IASB are: • To produce one set of quality that is high, understandable, enforceable and also worldwide recognized global economic reporting requirements (IFRSs) via the standard setting body of its, the IASB; • In order to promote the use and arduous application of those standards; • In order to take account of the fiscal reporting requirements of emerging economies and medium-sized and small entities (SMEs); and also • To result in convergence of national accounting requirements and IFRSs to good quality strategies.

• Loan or Investment Impairment: Currently, banks consider provisions on loans dependent on RBI recommendations, that are really prescriptive & need restricted use of judgment. Nevertheless, IFRS takes a case by case assessment (for substantial exposures) of the facts as well as circumstances that involve the recoverability as well as timing of succeeding cash flows associated with the credit exposure.

of holding it at historic price or smaller compared to fair value or the price. Appropriately, reasonable benefit methodologies as well as methods will have to be reexamined to make sure they're current, updated and are validated and again analyzed in current industry conditions. • Derivatives and Hedge Accounting: Application of hedge accounting would take down decreasing income statement volatility. Nevertheless, this can involve stringent and onerous proof needs, necessary efficiency examinations as well as determination of reasonable value dependent on observable inputs. • De Recognition of Financial Assets: Under IFRS, de recognition of financial property is an intricate, multi layered spot which uses the concept of transfer of rewards as well as consequences. In the Indian context, which is going to impact primarily the securitization actions? Securitization transactions wherein credit collaterals are furnished or maybe guarantee is offered covering recognition losses in excess of the losses natural in the profile of property securitized might not match the de recognition concepts enunciated within IAS.

Chopra, Singhal and A., S. (2016) [1] provides the awareness the main changes in accounting standards with regard to the analysis of its of revenue recognition, inventory valuation, company combinations etc. Additionally they discusses the difficulties in the very first time adoption of Ind AS. Garg, K. (2016) [2] States the demand for this particular convergence of IFRS with IND AS and also provides? detailed assistance on most accounting standards in IND AS. Additionally, it provides the brief thought on different accounting standards in the planning of financial statements. Singh, (2016) [3], in his article noted a statement made by the RBI,which mentioned the? IND AS implementation is apt to possess a major effect on the fiscal reporting systems and procedures and thus these modifications have being designed, managed, analyzed as well as performed in advance of the implementation date. Ghose, Prahaladka and S, A. (2015) [4] In principle of huge Carve and GAAP with IFRS Outs reveals that implementation of IND AS can have adequate impact on practice of the business, Informational key aim and outputs associated with each phase for example designing & planning, remedy development etc. Woods and Weaver (2015) [5] discover that the hindrance happen during implementation of IFRS entails lack of training and education, securing executive level assistance, responding and identifying to the wider business related implications of the change, along with problems with capturing the essential info for reporting below IFRS. Dugar, Tripathi as well as P., V. (2015) [6] discovered that there's a terrific effect on the importance of PPE because of changes brought about depreciation as a result of convergence. It's discovered that substantial parts of a property, equipment and plant may be depreciated individually or separately. Vedanandamurthy, (2015) [7] implies which particular issues will likely be experienced by the stakeholders as a result of the convergence of the current Indian accounting requirements with IFRS. despite the fact that the convergence has numerous issues and problems still the gains outweighing the issues that might be experienced, therefore, strongly suggesting the implementation of IFRS in India. Delloitte, (2015) [8], focused the Board and also audit board participants have a really essential part in the real management of the business. By most appropriate development and training panel members must be well prepared for transition phase. Their oversight and knowledge will help the decision makers of the firm to get around as well as run the chances, issues efficiently and effectively through dependable financial info on the investors on time.

The main purpose of this study is to the adoption of IFRS in Indian Banks & its associated benefits to various stakeholders.

In the current study, largely exploratory investigation design had been used, as the main objective of this particular analysis was gaining familiarity with the different areas of IFRS adopted by banking businesses of India and also in order to attain new insights to it. detailed questionnaire by using 6 selected top Banks viz., State Bank of India, Punjab National bank, Central Bank of India, HDFC bank, ICICI Bank and Axis bank. All these selected Banks have been using extremely complex method of IFRS.

Significance value (.000) in Exhibit No.4.32 clearly suggested that there is significant connection between IFRS will streamline the procedure of preparing someone along with team financial claims as well as the selected life insurance companies of India.

Post hoc analysis (Exhibit No. 4.33 IFRS and) will streamline the procedure of preparing someone along with team fiscal statements v/s banks discovered the workers of Punjab National Bank had regarded as the above mentioned element more essential for accounting apart from the employees of different banks.

Significance value (.000) in Exhibit No. 4.35 definitely depicts that we had a major connection between Internal Audit Easier & Cheaper for the selected banks.

Post hoc analysis along with Internal Audit Easier & Cheaper mean score v/s banks discovered the workers of Axis Bank had regarded as the above mentioned element more essential for accounting accessibility apart from the employees of some other remaining banks.

Significance value (.000) plainly indicates that we had a major connection between facilitate much better business risk management as well as the selected banks.

Post hoc analysis and facilitate much better business risk management v/s banks discovered the workers of Axis Bank had regarded as the above mentioned element more essential for accounting function compared to the employees of some other remaining banks.

The idea of accounting is starting to be essential in the banking industry of India. The researcher has discovered the workers that are employed in the banking industry more or maybe a reduced amount of pleased with the brand new accounting requirements names IFRS. The IFRS is used by India in 2011 and also roadmap is created or perhaps the adoption of the approach but hasn't experienced desired focus out of the stake holders. It's important to be aware that all of the selected banks of India had been followed IFRS at or even above par than anticipated by the respective staff of theirs. Nevertheless, the notion amount of SBI workers was considerably greater compared to the workers of staying the selected banks of India. is reality now‖, The Chambers Journal (March 2015), pp. 131-136 2. Garg, K. (2016). Practical Guide to IND-AS & IFRS‖ Bharat Law House Pvt. Ltd., 4th edn., 2016, ISBN 978-93-5139-361-0. 3. Singh & Associates (2016). India: implementation of Indian Accounting Standards (IND AS)‖. 4. Ghose, S. and Prahaladka, A. (2015). A Study of Convergence of Indian GAAP with IFRS and the Major Carve-Outs‖, IUP Journal of Accounting Research & Audit Practices; Hyderabad, pp. 7-22 5. Weaver, L. and Woods, M. (2015). The Challenges Faced by Reporting Entities on Their Transition to International Financial Reporting Standards: A Qualitative Study‖, Accounting in Europe, 2015, Vol. 12, No. 2, pp. 197–221. 6. Poonam Dugar, Vibha Tripathi (2015). Convergence to IND AS 16: Changes and Implications‖, The IUP Journal of Accounting Research & Audit Practices, pp. 7-28. 7. Vedanandamurthy (2015). IFRS performance in India: Problems and Challenges‖, International Journal of Multidisciplinary Research Review. 8. Delloitte (2015). Ind AS considerations for Boards and Audit Committee‖‗Deloitte.

Dr. Milan S. Shah is PhD,MCom, CA PE-II, UGC-NET, working in the area of finance and accounting. Presently he is working as an Associate Professor with Gandhinagar Institute of Technology, affiliated to Gujarat Technological University, Ahmedabad. He has couple of International and National publications on his record .He has attended many National and International seminars, conferences, FDPs, etc in respective domain. He is a passionate to share and explore his skills in academic and research. E-mail: milanshah22@yahoo.com.

Associate Professor, Gandhinagar Institute of Technology, affiliated to Gujarat Technological University, Ahmedabad, Gujarat, India