The accounting standards in India have been gradually converging with the International Financial Reporting Standards (IFRS) to enhance comparability and consistency in financial reporting. The Indian Accounting Standards (Ind AS) are based on the IFRS framework, with certain modifications to suit the Indian business environment and legal requirements. Here are some key aspects of the matching of Indian Accounting Standards with International Accounting Standards:

1. Convergence Process: The convergence process began in India in 2011 when the Ministry of Corporate Affairs (MCA) announced the adoption of Ind AS, which are largely based on the IFRS. The convergence aimed to improve the quality and transparency of financial reporting in India and align Indian standards with global best practices.
2. Adoption of IFRS: The Indian Accounting Standards converged with IFRS have been notified by the MCA and are applicable to specific classes of companies based on their size, nature of business, and listing status. The phased implementation of Ind AS started in 2016, with larger listed companies being the first to adopt the new standards.
3. Significant Convergence: The Ind AS framework is substantially converged with IFRS, with a few modifications and carve-outs to address specific Indian legal and regulatory requirements. The aim is to ensure that the financial statements prepared under Ind AS are comparable to those prepared under IFRS.
4. Differences and Carve-outs: Despite convergence, there are still certain differences and carve-outs between Ind AS and IFRS. These differences primarily arise due to legal, regulatory, and cultural factors specific to India. Some areas with notable differences include the treatment of certain financial instruments, leases, and consolidation of financial statements.
5. Roadmap for Convergence: The MCA has laid out a roadmap for the convergence of Indian Accounting Standards with IFRS. The roadmap outlines the specific timelines and criteria for companies to transition to Ind AS. This gradual approach allows companies to prepare for the changes and ensures a smooth transition to the new accounting standards.
6. Harmonization with International Standards: The convergence of Indian Accounting Standards with IFRS aims to achieve greater harmonization with international accounting practices. It facilitates cross-border investments, improves the comparability of financial statements, and enhances India’s position in the global business environment.

The convergence of Indian Accounting Standards with International Accounting Standards is an ongoing process, with regular updates and amendments being made to align with changes in IFRS. This convergence enhances the transparency, quality, and consistency of financial reporting in India and facilitates better understanding and analysis of financial statements by global stakeholders.