The Post-Effect of IFRS Adoption on Financial Position: An Empirical Study of Indian SMSEs

Abstract

The progressive country like India, now days Small and Medium Scale Enterprises (SMSEs) are contributing a remarkable share to country’s economy. SMSEs now considered as backing up to different economic prospective such as unemployment, GDP, FDI, etc. The globalization era witness of significant growth in integration of economy and capital market of countries and every organization of these countries want to expansion internationally and to raise capital for expansion organizations are not limiting themselves only to domestic capital market and to lead in the market, there is obliged fairness in accounting angle to check, study and examine the genuine financial position of the organization itself and outsiders like investor, authorized body and so on. On this regards International Financial Reporting Standards (IFRS) playing significant part to make standardized financial statements which can acceptable both national and international. In view of objective of this study a comparative approach adopted. Date collected from annual reports of SMSEs which are enlisted in BSE for the period of 4 year. The financial ratios like current ratio, returns on asset and earnings per share ratio taken as measure of profitability, liquidity and market of company for this study.

Keywords: IFRS, SMSEs, Financial position, financial reporting.

DOI: 10.7176/RJFA/10-24-08

Publication date: December 31^st 2019