The Impact of IFRS on Financial Statements: A Study of Indian Listed Companies

International Financial Reporting standard has become the new dominant set of accounting standards; however the transition to the new standards is fairly descriptive for users of financial statements. This paper highlights the benefit and challenges of IFRS adoption and identifying the major difference between Indian GAAP and IFRS. This study also examines the impact of IFRS adoption in India on financial statements figures and key financial ratios. For this purpose six Indian listed companies have been selected which have adopted IFRS voluntarily till 2014. For testing the hypotheses student's paired t test has been used. The finding of this study revealed that adoption of IFRS has led to a no significant impact on assets turnover ratio, fixed assets turnover ratio, return on assets, net profit margin, receivable turnover and return on equity.