IFRS (International Financial Reporting Standards) are a set of accounting standards which has issued by IASB. In the present time of globalization, above 3900 multinational companies are establishing their businesses in the different sectors in India. The ICAI has discharged a concept paper on convergence with IFRS in India. India decided to converge with IFRS by developing standard called Indian Accounting Standards (Ind AS). Ministry of Corporate Affairs has announced a new road map for the implementation of Ind AS with effect from 1st April, 2016 as mandatorily. Being the paradigm change Ind AS would impact every facet of each sector. The purpose of this study is to analyze the impact of IFRS on various sectors like Indian banking industry, Auto, Real estate, Infrastructure, Telecommunication etc. Convergence of IFRS will have a huge impact on the financial reporting systems and compliance processes and also requires significant change into existing policies. According to IFRS 9 loans and receivable portfolio are recorded on amortized cost basis. Implementation of Ind AS will significantly change the revenue recognition, measurement and increase the disclosure requirements. Under Ind AS, it would require recognition of the non-current receivables at their present value. This would impact the revenue recognition on a year on year basis. Thus, the overall impact on the company’s statement of profit and loss is in terms of additional depreciation and unwinding of discount. This research paper is a descriptive and basically conceptual in nature, based on secondary data. The conclusion of this study indicate that the convergence with IFRS more beneficial to attract the world capital market. Many Indian companies having businesses in a foreign country are preparing their financial statements using IFRS.

KEYWORDS:  Convergence of IFRS, Financial Reporting, Indian GAAP, Ind AS.