IFRS is the new proposed mechanism for accounting in India. This is a worldwide accepted format of accounting. IFRS system is planning to launch in India by April 1, 2011. The IFRS system covers is having all the options of analysis that includes revenue tabulation, sales prediction as well as transaction analysis. Through IFRS each company need to account its own transactions. This can avoid the system of dumping losses into other sub companies and associates. IFRS can implement fair value accounting. With this every transaction will documented in the market rate itself. IFRS can make the whole system much more transparent.

IFRS system will be adopted by all countries in future. The currently followed system of GAAP (Generally Accepted Accounting Principles) will get switch over to IFRS. IFRS can really affect the status of a company. With its implementation a company can go to loss from profit or the reverse. For some companies showing profit in the current system of accounting will show loss in  IFRS.

It is a practice by companies to show high profit value in the accounts. This can raise the value of the shares. This will be avoided by the implementation of IFRS. In IFRS every entry need to be marked with the market value. In the IFRS every asset of the company need to be valued. Both the tangible as well as intangible assets need to be properly valued. This jointly show the status of the company.

Generally in the current pattern of accounting the loss made by a company will get divided into the subsidiaries and the associate companies. This is mechanism followed to attain goodwill among the share holders. IFRS can eliminate this practice. IFRS makes each company to tabulate their own individual accounts. Every aspects of the individual firm gets reviewed through IFRS.

The companies need to conduct a revision in order to change to the propose IFRS system. They also need to change many of the current patterns to become IFRS compliment. IFRS system redefines the entire business process.

Today about 100 countries have adopted the IFRS system. The IFRS makes the world wide accounting as well as comparisons easier. The test for the goodwill will occur in every year.

While implementing, the IFRS system can result in a great change in the profit and income status of many running firms. This can make a great variation in the share values. The IFRS when implemented can change the whole face of business in India.