FACTORS AFFECTING CHANGES IN FINANCIAL RATIOS DURING THE TRANSITION FROM INDIAN GAAP TO IFRS (WITH SPECIAL REFERENCE TO IT COMPANIES IN INDIA)

Abstract

The adoption of International Financial Reporting Standards (IFRS) has a significant impact on the financial reporting practices of companies across the globe. India has also undergone a transition from the Indian Generally Accepted Accounting Principles (GAAP) to IFRS, which has resulted in several changes in the way companies prepare and present their financial statements. This study focuses on the factors that affect financial ratios during the transition from Indian GAAP to IFRS, with special reference to IT companies in India. The objectives of this study are to identify the differences between Indian GAAP and IFRS, examine the impact of these differences on financial ratios, and analyze how IT companies in India have coped with this transition. The study is based on a review of literature, including academic research papers, industry reports, and other relevant sources. The findings of this study are expected to provide insights into the challenges faced by IT companies during the transition to IFRS and help in identifying strategies to cope with the changes.