Universal Journal of Accounting and Finance 6(2): 29-46, 2018 http://www.hrpub.org DOI: 10.13189/ujaf.2018.060202 Application of IFRS/Ind AS in Indian Public Sector Banks: An Analysis Raj S Dhankar 1,2,* , Barnali Chaklader 3 , Amit Gupta 4 1 Amity University, Raipur, Chhattisgarh, India 2 Faculty of Management Studies, University of Delhi, Delhi, India 3 Professor of Finance & Accounting, International Management Institute, New Delhi, India 4 Faculty of Management Studies, University of Delhi, New Delhi, India Copyright©2018 by authors, all rights reserved. Authors agree that this article remains permanently open access under the terms of the Creative Commons Attribution License 4.0 International License Abstract This study examines the perception of Public Sector Banks in India towards the implementation of IFRS. The paper provides insights into the IFRS adoption process based on a questionnaire sent to Public Sector Banks in India in 2015. The 291 responses received indicate: (1) Loan Impairment will affect the bank’s financial performances; (2) transparency of the results of the Banks will be increased; (3) global operations of the Banks will be impacted in positive direction; (4) the accessibility of the global capital market will increase; (5) corporate governance of the banks will increase; (6) the quality of financial information provided to the regulators and shareholders will improve; (7) the comparability aspect of financial statements will increase; (8) market capitalization of banks will improve; (9) the training needs of the staff will increase; (10) the opportunities for the accounting professionals will expand; (11) the flow of FDI in the banking sector will increase. Keywords Public Sector Banks (PSBs), IFRS, Ind AS, ICAI, NACAS, IAS 1. Introduction International Financial Reporting Standards (IFRS) are a single set of high-quality, understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles. These standards enable the investors and other users of the financial statements to compare the financial statements on a like-for –like basis with their international peers. In India, Accounting Standards are formulated by the Council of the ICAI (Institute of Chartered Accountants of India) through its Accounting Standards Board. Thereafter, those Accounting Standards are considered by the National Advisory Committee on Accounting Standards (NACAS) of the Ministry of Corporate Affairs constituted under the Indian Companies Act, 1956 (now amended in 2013), which recommends the Standards to the Central Government for notifying under the Act. The Government, on accepting the recommendation of the Committee, notifies the Standards under the Act by publishing them in the Official Gazette. At present, 28 Accounting Standards, which are based on old IASs, have been notified under the Companies Act, 1956. In a move towards convergence with IFRSs, in 2007, the ICAI commenced the process of developing a complete set of Accounting Standards that are ‘converged with’ IFRSs – to be known as Indian Accounting Standards or Ind ASs. India has decided to converge its accounting standards with IFRSs issued by IASB instead of adoption of IFRSs. Thirty-five Ind ASs corresponding to IFRS in force on 1April, 2011 (with the exception of IFRS 9 Financial Instruments, IAS 26 Accounting and Reporting by Retirement Benefit Plans, and IAS 41 Agriculture) were placed on the website of the Ministry of Corporate Affairs. However, they have not been notified under the Companies Act, 1956. Ministry of Corporate Affairs, Government of India issued a press release on January 18, 2016, wherein a roadmap for adopting IFRS/Ind AS was announced for the scheduled commercial banks (excluding regional rural banks), insurers/insurance companies and non-banking finance companies. Thus, now, it has become mandatory to implement IFRS/Ind AS for accounting period beginning from April 1, 2018 onwards for the followings: 1) Scheduled commercial banks (excluding regional rural banks). 2) All India term lending refinancing institutions (i.e. EXIM Bank, NABARD, NHB and SIDBI). 3) Insurers/insurance companies. NBFCs will be required to prepare IFRS/Ind AS based financial statements in two phases: CITE THIS PAPER [1] Raj S Dhankar , Barnali Chaklader , Amit Gupta , "Application of IFRS/Ind AS in Indian Public Sector Banks: An Analysis," Universal Journal of Accounting and Finance, Vol. 6, No. 2, pp. 29 - 46, 2018. DOI: 10.13189/ujaf.2018.060202.