“Stakeholder Perception of IFRS Convergence and Its Impact on Net Worth and Accounting Software Utilization in Indian Financial Reporting”

Abstract

Purpose: This study aims to analyze expert perspectives on accounting practices, with a particular focus on the adoption and application of Indian Accounting Standards (Ind AS) and IFRS. It explores how organizational net worth, managerial expertise, and sectoral differences influence the selection of accounting standards and reporting systems, identifying critical factors driving these decisions.
Research Methodology: A structured framework utilizing DEMATEL and weighted mean analysis was applied to evaluate expert responses. Professionals from various managerial levels and sectors, including manufacturing, IT, services, and chartered accountant, were systematically selected. Statistical tools, such as Chi-Square tests and Spearman Correlation, were employed to examine relationships between net worth, accounting standards, and software preferences.
Findings: The results highlight “Convenience” and “Accounting Methods” as the most significant factors influencing accounting practices, with “Accounting Methods” exhibiting the highest relative importance. Larger firms demonstrate a preference for IAS/IFRS-based systems, while smaller firms rely predominantly on Indian GAAP. Awareness of Indian Accounting Standards (Ind AS) and IFRS increases with organizational net worth, indicating a transition to globally aligned practices among financially robust entities. The findings underscore the role of financial scale and sector-specific needs in determining the adoption of accounting standards and practices.
Limitations: This study is limited by its dependence on expert feedback, which may introduce subjective biases. Moreover, the findings are constrained to specific sectors and regions, necessitating broader research to validate the outcomes in different contexts and industries.