With the increase in complexity of the business environment and transactions, financial reporting is becoming increasingly challenging. This challenge is amplified by the significant changes being envisaged in the financial reporting standards in many jurisdictions.
Global capital markets are increasingly getting integrated and businesses are growing internationally. International expansion plans may involve cross-border acquisitions or joint ventures abroad, raising international debt finance, developing relationships with private equity houses or raising capital from the equity markets, whether in India or abroad.
In this scenario, financial reporting using a common reporting framework has become a need of the hour and has gained fast momentum in the last few years. Over 120 countries now use International Financial Reporting Standards or allow presentation of financial statements using International Financials Reporting Standard (IFRS). IFRS is increasingly being recognised as a global reporting standard for financial statements.
