Challenges of International Financial Reporting Standards in Indian Prospects

India is one of the emerging economies in the world.For economic development, foreign direct investment (FDI) is needed, to facilitate the investment climate."There is a need to integrate its financial reporting with rest of the economies of the globe so that investors from outside will appreciate the financial results and financial positions of the companies.This will provide uniformity and comparability of financial statements with the financial statements prepared in other countries.The basic objectives of the study are to understand the implications of importance of IFRS in the present situation and the process in adopting IFRS and to understand how International Financial Reporting Standards will affect the Indian corporate.IFRS has its own advantages and offers a chance for India to align and integrate with common International Accounting standard which will save the cost which has to be incurred by MNCs and internationally listed corporate for maintaining dual accounting and reporting system.It will also provide opportunity for small and mid-sized industries and institutions to transact with counterparts across the Globe and harvest efficiencies and broader exposure.