The Ministry of Corporate Affairs (MCA) notified 41 Indian Accounting Standards (IND-AS) through Companies (Indian Accounting Standards) Rules, 2015 (16 February 2015) and Companies (Indian Accounting Standards) (Amendment) Rules, 2016 (30 March 2016) in pursuance of the provisions of Section 133 read with Section 469 of the Companies Act, 2013. As Indian companies now have a wider global reach than before, the need to integrate reporting standards with international standards was felt, which led to IFRS. IND AS 1 prescribes the basis for presentation of general purpose financial statements to ensure comparability both with the entity’s financial statements of previous periods and with the financial statements of other entities. It sets the minimum requirements of guidelines for the presentation of financial statements, their structure and their contents. The requirements for the presentation of financial statements are set out in Schedule III of the Companies Act, 2013, Banking Regulation Act,1949 (for banks), the regulations issued by the Insurance Regulatory and Development Authority (for insurance companies) and the SEBI Guidelines for mutual funds together with the Accounting Standards notified under the companies (Accounting Standard) Rules, 2006. This paper is an attempt to find out whether the accounting quality has improved of selected Indian companies listed on the Bombay Stock Exchange, before and after the adoption of IND AS, in preparing their financial statements in terms of cash flow prediction and cash flow persistence.

KEYWORDS: Indian Accounting Standards (IND-AS), Schedule III.