Accounting practises in India have improved significantly in recent years, owing to increased need for openness, accountability, and compliance with international norms.
These developments aim to improve financial reporting and create a solid and trustworthy financial system across the country’s many sectors. Accounting practises have improved significantly in numerous key areas.
First, with the adoption of Indian Accounting Standards (Ind AS), India has made tremendous progress in aligning its accounting standards with International Financial Reporting Standards (IFRS). This change has enhanced financial statement comparability and openness, allowing for greater analysis, decision-making, and cross-border investments.
Convergence with international standards has increased not only the legitimacy of financial reporting but also investor confidence in Indian companies.
Second, the emphasis on improved corporate governance practises has been critical in raising accounting standards in India. Listed firms must now follow strong corporate governance standards to ensure effective monitoring, internal controls, and transparent financial reporting.
These measures encourage honesty, accountability, and responsible financial management, which strengthens the overall governance structure and corporate confidence.
Furthermore, the incorporation of technology-driven reforms has transformed the country’s accounting practises. Initiatives like the adoption of the Goods and Services Tax (GST) have streamlined tax reporting, increased transparency, and improved financial transaction efficiency.
Adoption of digital accounting software and automation technologies has greatly enhanced financial data accuracy, accessibility, and analysis, allowing organisations to make more informed and data-driven decisions.
