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Importance Of International Accounting

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Introduction
The true meaning of Globalization lies in the international integration arising from the interchange of products, ideas and practices. The development of e-commerce and liberalization of the economy, structures and the regulations which support it, drove to have a single worldwide accepted financial reporting system. A large number of multinational corporations are setting up their business units in different countries and are increasingly accessing the global markets by listing their securities on the foreign stock exchanges. Corporations around the world venture into business activities either through their own presence in different parts of the world or through their subsidiaries, collaborations, associates and joint ventures. …show more content…
Indeed, sound financial reporting standards underline the trust that investors place in financial reporting information. Needless to mention, internationally accepted accounting standards play a major role in this entire process. It is in this context that the role of an independent, global standard-setting body such as the International Accounting Standards Board (IASB) is of critical importance. The principal objectives of the IASB …show more content…
Under the circumstances, it would be imperative for Indian corporates to adopt IFRS for their financial reporting.
IFRS adoption procedure in India
To rationalize accounting practices in the country, the Indian government in 1949, established Institute of Chartered Accountants of India by passing ICAI Act, 1949. Accounting Standard Board was constituted by ICAI in 1977 in order to create harmony among the diversified accounting policies and practices in India. Three steps process was laid down by the accounting professionals in India which are summarized as

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