IMPACT OF IFRS IN INDIAN EQUITY MARKET (Pages 76-81) by Prof. Debendra Shaw in THE INTERNATIONAL MANAGER / ISSN: 2348-9413 (Online); 2348-9405 (Print)

Investing in stock market is a very challenging job. In India, equity market is not very much not popular investment destination. The equity market is highly influenced be FII inflows and outflows. Last year we observed Indian equity market sharply affected by overseas slowdown in Europe. Europe crisis badly butchered equity market in India. At present uncertainty cast a big shadow over Indian market. Now all the equity market of world is affected by global contingencies. In such a situation it would be interest to look at companies for whom coming years prove to be critical as they are just on the way of adopting International Financial Reporting Standards (IFRS) that will lead to impact on financial reporting, debt management etc. IFRS is a universal financial reporting language consisting of a set of high quality understandable and enforceable global accounting standards. The transition from historical accounting to market oriented accounting to be a challenge for Indian companies and equity market in India. IFRS have immediate bearing on the earning numbers of companies and market will also respond on these factors. IFRS developed by International Accounting Standard Board, these standards are expected to be implemented in India in phased manner. IFRS is intended to improve comparability of financial statement of companies across the globe there by encouraging investment from global entities in Indian equity market. IFRS differs from present Indian Accounting Standards in many cases, which is likely to impact the reported numbers for the companies in short term and equity market in India will also react on these contingencies. Keywords: IFRS, Equity market, Financial statement.etc.