Indian GAAPs, IFRS, and Its Comparison: An Empirical Critique

Abstract

Globalization plays a vital role in making the financial markets of the world borderless, and as a result, businesses (including small- and medium-sized enterprises) are competing for equity at the best price everywhere possible. Investors and borrowers seek investment opportunities wherever they can obtain the best returns per the risks involved and assess the risks and returns associated with various investment opportunities that require accurate and credible financial information for investors and borrowers [14]. The present study examines the perception of the accounting professionals towards the comparison of Indian GAAP [Generally Accepted Accounting Principles (GAAPs) are those concepts and conventions on which the accounting system is based. The primary objective of these principles is to bring uniformity and consistency in the preparation and presentation of final statements] with IFRS [To create a common accounting language throughout the world, so that businesses and their financial statements can be consistent and reliable across nations, and International Financial Reporting Standards (IFRS) were created by International Accounting Standards Board (IASB) in the year 2001].