The study examines the body of research on Indian companies' financial performance and the implementation of International Financial Reporting Standards (IFRS). Since the phased implementation of IFRS started in 2010; it has extensively changed financial reporting standards with a view to increase transparency, comparability and reliability. A synthesis of about 100 empirical research papers points to themes including profitability, liquidity and market valuation among others, with a general trend in favour of the positive association between IFRS adoption and financial performance measures. As a result, most companies' profitability margins and liquidity situations improved, which raised investor confidence and market valuation. Yet, obstacles like the costs of implementation or the complexity of standards remain, especially for small and medium-sized companies. The paper concludes that the landscape which emerged following IFRS adoption, while yielding a variety of potential benefits, also introduced new risks and persisted with old practices that presumably should have been left behind in this age of improved standards-setting and convergence—it ends suggesting further research efforts continue examining the enduring consequences of 20 or so years.
Singh et al. (Mon,) studied this question.