A COMPARATIVE STUDY ON FINANCIAL REPORTING OF SELECT NIFTY FIFTY COMPANIES USING GRAY’S COMPARABILITY INDEX

Abstract

The Institute of Chartered Accountants of India (ICAI) plays a crucial role in promoting globally recognized accounting standards in the Indian context. In this endeavor, ICAI has introduced the Indian Accounting Standards (Ind AS) to align with the International Financial Reporting Standards (IFRS). We aim to assess the impact of implementing the new accounting standards compared to the pre-existing standards. To achieve this, we employed Grays comparability index model on the key items of the consolidated financial statements of selected NIFTY FIFTY companies and examined the outcomes. The analysis reveals significant alterations in the figures of current and non-current liabilities, as well as total income and total expenses. These changes are attributed to various recognition and disclosure criteria introduced by the new accounting standard. KEY WORDS: Ind AS, IGAAP, NIFTY FIFTY, Grays Comparability Index