Impact Of International Financial Reporting Standards (IFRS) Adoption On Financial Performance Of Information Technology Companies In India

Abstract

This research paper explores the impact of International Financial Reporting Standards (IFRS) adoption on the financial performance of the top 10 information technology (IT) companies in India. The study evaluates financial metrics before and after the implementation of IFRS, which was mandated for Indian listed companies starting April 1, 2016. By analyzing key performance indicators such as profitability, liquidity, and valuation ratios, the research aims to identify significant changes and trends resulting from the transition to IFRS. The findings indicate that while IFRS adoption generally enhanced financial transparency and comparability, the effects on specific financial metrics varied across companies. Profitability metrics showed improvements for some companies, whereas liquidity ratios remained stable, and valuation ratios exhibited mixed results. The study underscores the importance of understanding IFRS impacts for investors and company management, providing insights into how IFRS adoption influences financial reporting and performance in the Indian IT sector.