IFRS in India

IFRS stands for International Financial Reporting Standards. A brief write up about what IFRS is and how it came to be is important at this stage. After the scandals took place in Worldcom and Enron, it became important that proper accounting for the enterprises and a common set of accounting standards be put in place so that there may be convergence of accounting standards all over the world by a harmonisation of accounting principles so that shareholders and other users of accounting statements be given a true picture of the state of affairs of a company’s financial position and operating results all over the world. With this objective in mind, Sir David Tweedie , the chairman of the International Accounting Standards Board (IASB) , made an impressive start in the right direction by creating the IFRS , a standard to be followed by all countries so as to have uniformity and harmonisation of accounting principles all over the world.