Abstract
Globalization plays a vital role in making the financial markets of the world borderless, and as a result, businesses (including small- and medium-sized enterprises) are competing for equity at the best price everywhere possible. Investors and borrowers seek investment opportunities wherever they can obtain the best returns per the risks involved and assess the risks and returns associated with various investment opportunities that require accurate and credible financial information for investors and borrowers [14]. The present study examines the perception of the accounting professionals towards the comparison of Indian GAAP [Generally Accepted Accounting Principles (GAAPs) are those concepts and conventions on which the accounting system is based. The primary objective of these principles is to bring uniformity and consistency in the preparation and presentation of final statements] with IFRS [To create a common accounting language throughout the world, so that businesses and their financial statements can be consistent and reliable across nations, and International Financial Reporting Standards (IFRS) were created by International Accounting Standards Board (IASB) in the year 2001].
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Source: Idea taken from Hendriksen [9]
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Notes
Generally Accepted Accounting Standards (GAAP or US GAAP) are a collection of commonly followed accounting rules and standards for financial reporting. The purpose of GAAP is to ensure transparency and consistency from one organization to another organization.
The Financial Accounting Standards Board (FASB) is a private, non-profit organization standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles (GAAP) within the United States in the public's interest.
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This article is part of the topical collection “Computational Statistics” guest edited by Anish Gupta, Mike Hinchey, Vincenzo Puri, Zeev Zalevsky and Wan Abdul Rahim”.
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Puri, N., Singh, H. Indian GAAPs, IFRS, and Its Comparison: An Empirical Critique. SN COMPUT. SCI. 1, 315 (2020). https://doi.org/10.1007/s42979-020-00327-4
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DOI: https://doi.org/10.1007/s42979-020-00327-4