Question

What is the purpose of convergence to International Financial Reporting Standards (IFRS)?

a.

To align Indian accounting standards with international standards

b.

To reduce the reporting burden for Indian multinational companies

c.

To attract foreign capital at a lower cost

d.

All of the above

Answer: (d).All of the above Explanation:Convergence to IFRS aims to align Indian accounting standards with international standards, reduce the reporting burden for Indian multinational companies, and enhance their ability to raise and attract foreign capital at a lower cost. It brings Indian accounting standards in line with the more stringent and transparent Generally Accepted Accounting Standards (GAAP) of the US.

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Q. What is the purpose of convergence to International Financial Reporting Standards (IFRS)?

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