Özet:

This paper provides an insight into the impact of the implementation of IFRS converged Indian Accounting Standards (IND AS) in India on the Tax Expense accounted for by studying the average Effective Tax Rate (ETR) for a five-year block period before and post-implementation of IND AS. The study is on a sample list of top Indian Companies listed on the National Stock Exchange (NSE). Before the implementation of the IND AS, the Companies were required to follow the Indian GAAP – Accounting Standards. ‘IND AS 12 – Income Taxes’ uses the balance sheet approach whereas the ‘AS 22 – Accounting for Income Taxes’ followed a profit and loss account approach to determine the deferred tax. Examining the impact of the change in the GAAP is important because ‘Tax Expense’ reduces the distributable profit that is available to the shareholders and brings down the EPS. Our study finds that there is no significant impact because of the implementation of IND AS in India.

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