Any country can become IFRS compliant either through adoption or convergence. You are required to: (a) Explain the adoption process of IFRS. (b)…

(a) Adoption would mean that the country sets a specific timetable when specific entities would be required to use IFRS as issued by the IASB. (b) Convergence means that the country will develop high quality, compatible accounting standards and there would be alignment of the standards of different standard setters with a certain rate of compromise, by adopting the requirements of the standards either fully or partially. Ind AS are almost similar to IFRS but with few carve outs so as to make them suitable for Indian Environment. (c) Improves investor confidence across the world with transparency and comparability. Improves inter-unit/ inter-firm/inter-industry comparison. Group consolidation will be easy with same standard by all companies in group irrespective of their global location. Acceptability of financial statements by stock exchanges across the globe, which will facilitate listing of Indian companies to international stock exchanges.