High-quality uniform standards are essential for competing in the global market, particularly in accounting and auditing. The Indian Accounting Standards (Ind AS) represent a significant shift for Indian companies, transitioning from the traditional Indian Generally Accepted Accounting Principles (IGAAP) to a more comprehensive framework aligned with International Financial Reporting Standards (IFRS). This important transition began in 2016, allowing Indian companies to gradually adopt these modern standards. The Ministry of Corporate Affairs (MCA) introduced a well-structured roadmap for this adoption, divided into four distinct phases based on the company's net worth. This approach ensures a smooth and strategic transition to higher accounting standards. In the first two years after adoption, listed and non-listed Indian companies are categorized, while Listed Non-Banking Financial Companies (NBFCs) and non-listed NBFCs fall under the third and fourth years of adoption. The proposed study is carried out with the help of annual reports of 13 companies to examine the impact of the implementation of Ind AS using select ratios with Gray’s Comparability Index Measure and Paired sample t test. The study concluded that there are changes and an impact of implementation on profitability and liquidity on implication of Ind AS in companies, but solvency remains the same as in IGAAP.
Pitchandi et al. (Thu,) studied this question.