Journal Press India^®

Author Details ( * ) denotes Corresponding author

MCA, government of India, by its notification dated 16.02.2015 introduced new accounting standard rules which converged Indian Accounting Standards in the line of IFRSs (i.e. Ind ASs). MCA already notified a separate Ind AS on Fair Value Measurement (Ind AS 113). Companies (Indian Accounting Standards) Rules, 2015 and its subsequent amendments stipulated adoption and applicability of Ind ASs in Indian corporate financial reporting in a phased manner mandatorily from the financial year 2016-17. Therefore, in India, financial statements for the year ended 31st March, 2017 were the first that some specified companies already prepared adopting Ind ASs as well as applying fair value measurement with a transition date of 01.04.2015. This study is an attempt to assess direct impact of application of fair value on Indian corporate reporting. For the purpose of study, financial statements for the financial years 2015-16 (i.e. first transition to Ind ASs year restated in accordance with Ind ASs for comparative information) and 2016-17 (i.e. first time mandatory Ind ASs adoption year) of ten Nifty listed companies has been selected. Analysis of items in financial statements of these select companies has been made to assess direct impact of application of fair value concept on Indian corporate financial statements.

Keywords

Ind AS; IFRS; Historical cost; Fair value; Other comprehensive income.

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