Suman Choudhary
Accounting standards harmonization has become a significant reform in India's financial reporting system with the convergence of Indian Accounting Standards (Ind AS) toward International Financial Reporting Standards (IFRS). This study examines the impact of accounting standards harmonization on accounting and financial reporting practices with special reference to selected Maharatna Public Sector Undertakings (PSUs) in India. The paper adopts a descriptive research approach based on secondary data collected from published literature, annual reports of selected Maharatna PSUs, regulatory publications, and accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the Ministry of Corporate Affairs (MCA). The study reviews the evolution of accounting standards in India, the transition from Indian GAAP to Ind AS, and the regulatory framework governing financial reporting. It further analyzes the implementation of Ind AS in selected Maharatna PSUs by examining changes in accounting policies, disclosure practices, and the role of the Comptroller and Auditor General (C&AG) in ensuring financial accountability. The findings indicate that accounting standards harmonization has substantially improved the quality, transparency, consistency, and comparability of financial reporting while strengthening corporate governance and stakeholder confidence. The adoption of Ind AS has enhanced disclosures relating to financial instruments, fair value measurement, revenue recognition, and risk management, thereby aligning Indian financial reporting practices with international standards. However, challenges such as implementation costs, system upgrades, professional training, and the complexity of fair value accounting continue to affect the transition process. The study concludes that although the implementation of Ind AS presents operational challenges, the long-term benefits of harmonized accounting standards significantly outweigh these difficulties and contribute to more reliable, transparent, and globally comparable financial reporting practices in Indian Public Sector Undertakings.
Accounting Standards Harmonization, Ind AS, IFRS, Indian GAAP, Public Sector Undertakings, Maharatna PSUs, Financial Reporting, Corporate Governance, C&AG