Impact of IND-AS Adoption on Accounting Quality: Evidence from Indian Agricultural Sector

Abstract

In this study we investigate the impact of Ind-AS on the accounting quality of financial reporting by Indian firms within the agricultural sector. This research specifically analyses how the implementation of these converged standards affects key accounting quality indicators, such as earnings management through earning smoothing & managing earning towards targets and loss recognition. The study employs a pre- and post-adoption quasi-experimental design to assess the impact of IND-AS adoption on accounting quality in Indian agricultural public listed companies. The study employs panel data regression models due to the longitudinal nature of the data. Our study provides evidence that, even within a specific economic sector like Indian agriculture, the impact of such a transition is multifaceted, leading to improvements in certain aspects of earnings management but not uniformly across all measures of accounting quality, particularly in areas like timely loss recognition.