75 MANAGEMENT TODAY -for a better tomorrow An International Journal of Management Studies home page: www.mgmt2day.griet.ac.in Vol.7, No.2, April-June 2017 A Comparative Study of Balance Sheets Prepared under Indian GAAP and IFRS with Special Reference to Select IT Companies Revanayya Kantayya 1 and Panduranga, V. 2 1 Research Scholar, 2 Assistant Professor, Department of Commerce, School of Business Studies, Central University of Karnataka, , Kalaburagi – 585367, Karnataka State, India. Revanayya13m.comcuk@gmail.com / pvpatti@gmail.com / pandurangavp@cuk.ac.in A R T I C L E I N F O Article history: Received 13.06.2017 Accepted 25.06.2017 Keywords: Indian GAAP, IFRS, GCI, IASB, IFRS Foundation A B S T R A C T The wave of globalization has brought drastic changes in the business environment across the world. Emerging entities are not only operating in cross-borders, they are also sourcing funds globally. Need of the hour is a widely accepted, high quality financial reporting to enhance transparency and comparability of financial reports which enable users to take appropriate decisions. Effects are being made by the regulators, accounting professionals, associations and researchers for harmonising financial reporting. A remarkable achievement is being made by International Accounting Standards Board (IASB), which operates under the purview of the IFRS Foundation in this context by developing International Financial Reporting Standards (IFRS). Basically, IFRS adoption is viewed as a commitment for better disclosure, which may have various impacts on financial reporting; the present study is an attempt to compare the balance sheets prepared under the Indian GAAP and IFRS of select IT companies The specific objective of this study is to find the quantitative differences between the Balance Sheet items (viz. total assets, total liabilities and total equity) prepared under Indian GAAP and IFRS. Gray’s Comparability Index (GCI) is applied to compare the key items of balance sheets prepared under Indian GAAP and IFRS. Findings of the study reveal that there are quantitative differences in the Balance sheet items of Infosys Limited and Wipro Limited prepared under Indian GAAP and IFRS. 1. Introduction The wave of globalization has brought drastic changes in the business environment across the world. Apart from borderless operations, emerging business corporations are raising finance from international capital and money markets. The shareholders spread across the world. In this context, the regional accounting languages are no longer adequate. Financial reporting has become challenging in the recent past. As the influence of capital markets grew and domestic market places became more sophisticated. Need of the hour is a widely accepted, high quality reporting to enhance transparency and comparability that would enable stakeholders to take proper decisions. Regulators, Accounting professionals, associations and researchers have made remarkable contributions for harmonising financial reporting. A landmark achievement is developing International Financial Reporting Standards (IFRS) by the International Accounting Standards Board (IASB), which operates under the purview of the IFRS Foundation. The goal of the IASB and the IFRS Foundation is working for developing a global financial reporting standard that bring transparency, accountability and efficiency to financial markets around the world has developed International Financial Reporting Standards. These standards serve the public interest by fostering trust, growth, and long-term financial stability in ----------------------------------------------------------------------------------------------------- Responsibility of Contents of this paper rests upon the authors and not upon GRIET publications ISSN: 2348-3989 (Online) ISSN: 2230-9764 (Print) Doi: http://dx.doi.org/10.11127/gmt.2017.06.03 pp. 75-85 Copyright@GRIET Publications. All rights reserved.