ANNEXURE II

Questionnaire

Instruction for filling the questionnaire: Please put cross mark (use X) adjacent to your
choice

1) Demographic profile

Name (optional)
Membership No.
Male
Gender
Female
Age (in Years)
Self practices
Employment Employed in audit firm
Employed in industry
Accounts
Audit
Area of Specialization
Taxation
Others (Please Specify)
0-5
5--10
Experience
10--15
Above 15

2) Please rank the following “Major Reasons” for being positive in applying IFRS (1 for
most preferred & 6 for least preferred)

Sr. No Major Reasons Ranks

1 Transparency
2 Comparability
3 Investment opportunity
4 Mandatory application of it
5 Better corporate governance
6 Existence of uniform accounting system

3) Please rank the following “Major Reasons” for being negative in applying IFRS (1 for
most preferred & 5 for least preferred)

Sr. No Major Reasons Ranks

1 High cost of adoption
2 Lack of knowledge
3 Human psychology (resistance to adopt new things)
4 Lack of training
5 Broad changes in accounting world
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 4) Knowledge Evaluation - please choose the field that best suits to you:

Very Very
Sr. No. Statements Little Mediocre Much
little much
1 Do you have general accounting knowledge?
2 Do you have software accounting knowledge?
3 How informed are you in relation to IFRS?
4 Are you aware of the Pros/Cons of applying IFRS?
Do you believe that you will meet barriers
5
during the applications of IFRS?
Do you consider that the cost of applying IFRS
6
exceeds entities' abilities?
Do you believe that different standards should be
7
adopted, adaptable to users' need?
Do you think auditors, accountants and accounting
8
students are ready for the convergence to IFRS?
Do you believe that existing accounting software
9
are compatible with IFRS?

5) To which extent you agree with following statements that convergence with IFRS brings
benefits to Companies/Industries:
(SA-Strongly Agree, A- Agree, UD- Undecided, DA- Disagree, SDA- Strongly Disagree

Sr. No. Statements SA A UD DA SDA

IFRS would simplify the process of preparing the
1
individual and group financial statements
It will improve analysis of information for decision
2
Making
Accuracy & reliability of accounting information will
3
be enhanced
4 Better inter- company comparison of financial statements
Accuracy & reliability of reported earning and financial
5
position improved
6 Merger/Acquisition became easy
7 IFRS brings better corporate governance
8 Better access to capital market (including foreign investors)
9 It will reduce cost of capital
Ease of using one consistent reporting standard in
10
subsidiaries from different countries
11 It will make internal audit easier and less costly
Harmonize internal and external reporting by creating a
12
single accounting language
13 It will facilitate better business risk management

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 6) To which extent you agree with following statements that convergence with IFRS brings
benefits to Investors’:

Sr. No. Statements SA A UD DA SDA

1 Better information for decision making
2 More confidence in information presented
3 Better understanding of risk and return
Investors can compare a peer group of companies’
4
financial statements
5 More timely financial report
6 Save time in analyzing financial reports

7) To which extent you agree with following statements that convergence with IFRS brings
benefits for National Regulatory Bodies:

Sr.
Statements SA A UD DA SDA
No.
More affecting regulatory oversight and enforcement of
1
higher standards of financial disclosures
2 IFRS will made early warning signals of corporate frauds
3 Capital market regulatory will be easier
4 IFRS will result in improving income (taxes) exchange rate

8) To which extent you agree with following key success factors for IFRS adoption:

Sr. No. Key Success Factors SA A UD DA SDA

Implementation of IFRS would reduce information asymmetry
1 and would subsequently smooth the communication between
managers, shareholders, lenders and other interested parties
Indian corporate sectors have Sufficient fund for convergence
2
with IFRS
3 Executive and board support to convergence with IFRS
4 Professional support with IFRS experience
5 India have sound system of corporate governance
6 Self enforcement by companies
7 IFRS cover both qualitative and quantitative aspects of accounting
IFRS will help the accountants and auditors to prevent frauds done
8
by companies accountant
9 IFRS presents opportunities for small and medium size firm to grow

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 9) To which extent you agree with following general statements regarding IFRS adoption:

Sr. No. General Statements SA A UD DA SDA

It is necessary for CA to qualify CISA or equivalent ISA
1
course for convergence with IFRS
A country is more likely to implement IFRS if other
2
countries in its geographical region are IFRS adopters
The perceived difficulties, costs and benefits of differ
3
across company size or nature of industry
The journey to IFRS need to meticulously planning and
4
carefully execution
IFRS benefits the accounting professionals to sell their
5
services as experts in different part of the world
Convergence with IFRS eliminate the requirement for dual set of financial
6
statements and thereby reduces the cost of raising funds by companies
The culture of each country impact on accounting and IFRS
7
Harmonization
Smooth functioning of IFRS to a large extent depend upon university
8 curriculum and coordination with professionals

10) To which extent you agree with following challenges in convergence with IFRS:

Sr.
Challenges SA A UD DA SDA
No.
1 IFRS requires immediate change in Indian company laws or regulations
2 IFRS requires immediate change in Indian tax accounting policies and practices
3 IFRS requires immediate change in Indian SEBI regulations
4 IFRS requires immediate change in Indian IRDA regulations
5 Inadequate training facilities at an affordable cost is a roadblock to IFRS
6 Insufficient preparatory period is causing difficulty in convergence with IFRS
7 Fair value measurement being highly subjective obstructs in execution of IFRS
IFRS based financial statements will not provide a fair picture of financial position
8
of companies in countries suffering from hyper-inflation
9 IFRS implementation is likely to increase tax burden on companies
Work and burden of an accountant/auditors will be increased due
10
to implementation of IFRS
IFRS has increased complexities in preparing financial statements
11
thereby increased the risk of errors and omissions
12 Retention of key employees due to convergence with IFRS
First time adoption will impair the quality of first financial statements
13
and will also affect the quality of the financial statements
Corporate India and accounting professionals need to be trained for
14
effective migration to IFRS
15 Auditors would need to trained their staff to audit under IFRS environment
Companies need to communicate the impact of IFRS convergence to their
16
investors to ensure they understand the shift from Indian GAAP to IFRS
17 IFRS require restructuring of ESOP schemes

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 11) To which extent you agree with following statements on fundamentals in convergence
with IFRS:

Sr.
Fundamental Statements SA A UD DA SDA
No.
In IFRS mode, de-recognisation of financial asset is a complex process, multi
1
-layered and in the Indian context this will impact the securitization activity
2 The current value of the net worth is hard to find out in the IFRS mode
When many of the financial products do not have an active market, inputs
3
for estimation of fair value may not be that much reliable.
In accordance with IFRS 2, the effect of share based payment transactions on
4 the entity’s profit & loss account for the period and on its financial position
presents true and fair view
As per IFRS 3, pooling of interest method is banned is a right decision and
5
it will present the true and fair view of financial statements
In accordance with IFRS 5, there is no need of presentation of discontinued
6 operation in the separate income statement while it was necessary under
Indian GAAP, how far you agree with this decision
IFRS 8 prescribes certain additional disclosure requirement regarding enterprise’s share
of profit or loss of associates and joint venture and regarding restatement of prior
7
years information etc. which are not covered in AS 17, This additional disclosure
presents true and fair view of financial statements
In case of IFRS no valuation allowance is required to be given as the assets
8 are valued at fair value, which is determined after considering any
valuation allowance is a right way of treatment
Disclosure relating to any impairment losses or reversals of impairment
9 losses are also required when preparing the companies' opening
IFRS balance sheet is a true & fair way
10 Calculation the value of intangible assets is very cumbersome process under IFRS
11 Managerial remuneration will be adversely affected due to transition to IFRS
Depreciation under IFRS would add huge volatility in numbers and
12
also make forecasting much more difficult
Classification and reporting of non-current assets or disposal groups
13
held for sale in accordance with IFRS 5 gives ‘true and fair view’
14 Cost of equity or cost of capital will be influenced by the adoption of IFRS.
IFRS 8 will change the number of segment and increased segment
15
present true & fair view
IFRS 8 will improve consistency between internal and
16
external financial information
17 IFRS 8 results in a better cost benefits ratio
Prohibition of LIFO as a measurement basis for inventory under
18
IFRS is a right decision
19 The fair value of share option measured in accordance with IFRS 2
when there is no market price available presents ‘true and fair view’
Business combination accounted by applying purchase method
20
and reported in accordance with IFRS 3 presents ‘true and fair view’
The allocation of the cost of business combination to the assets, liabilities
21
and contingent liabilities in accordance with IFRS 3 presents ‘true and fair view’
When there is no market price available for the purchased intangible assets,
22
then use of the fair value in accordance with IFRS 3 presents true and fair view

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12) Effective transition of all Indian companies to IFRS requires followings steps (please rank
1 for most preferred and 6 for least preferred )

Sr. No. Requirements Ranks

1 IFRS training for investors
2 IFRS training for management
3 IFRS training for auditors
4 IFRS education in the accounting curriculum
5 IFRS training for accountants
6 Accounting training for CFOs

13) What according to you is the single most important reason for which India should switch
from Indian GAAP to IFRS?

14) What according to you is the single most important reason for which India should not
switch from Indian GAAP to IFRS?

15) Please provide below any additional observations or comments with respect to
convergence with IFRS:

Thank you so much for sharing your valuable information and for giving your precious
time to me.

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