Role of Employees in IFRS in the Commercial Banking Sector in India- An Empirical Study in India

Interconnectedness is the defining feature of globalization. International monetary transactions and fund transfers are enabled globally through the banking operations. The strength of a banking organization depends on the efficiency of the stakeholders like the employees for which the organizations...

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Bibliographic Details
Published in:Journal of finance, accounting, and management accounting, and management, 2022-01, Vol.13 (1), p.1-22
Main Author: Suman, Sonika
Format: Article
Language:English
Subjects:
Accounting
Accounting systems
Balance sheets
Banking industry
Cash flow statements
Central banks
Commercial banks
Efficiency
Employees
Financial statements
Globalization
International Financial Reporting Standards
Likert scale
Perceptions
Profits
Public sector
Questionnaires
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Summary:Interconnectedness is the defining feature of globalization. International monetary transactions and fund transfers are enabled globally through the banking operations. The strength of a banking organization depends on the efficiency of the stakeholders like the employees for which the organizations have to necessarily maintain the financial and accounting systems with accuracy and as per the laws and rules of the regulatory authorities, globally. Therefore, some common sets of rules are required which can be understood internationally with equal trust of the employee stakeholders. Therefore, the banking sector is expected to apply the regulations of the International Financial Reporting Standards (IFRS). "International Financial Reporting Standards (IFRS) set common rules so that financial statements can be consistent, transparent, and comparable around the world. They specify how companies must maintain and report their accounts, defining types of transactions, and other events with financial impact". These standards are formulated to bring consistency to "accounting language, practices and statements and to help businesses and investors make educated financial analyses and decisions." The Indian central bank, the Reserve Bank of India, while issuing instructions to the commercial banks directed to keep the banking sector in high alert and preparedness to adopt IFRS across India. Among the human resources identified by the RBI, the employees of the commercial banks are the primary stakeholders. Therefore, in an empirical study, the primary data was collected from the commercial banks of a district in India and analysed to examine the preparedness as deemed necessary by the Indian Reserve Bank of India. This paper reports the analysis of such data. It is interesting to note that in the private and public sector banks, more than fifty percent of the employees fall under the category of 18-35 age groups. Similarly, male employees are 72.6% in the public sector and it is 58.3% in the private sector. In both sectors, the males dominate in terms of percentage. In the matter of education, both the sectors have more employees who are above matriculation and graduation. In both the sectors, the managerial staff are more in percentages. In overall assessment, the employee perception is favorable to the adoption and implementation of IFRS in the banking sector. Nevertheless, much more has to be done at the ground level for the required preparedness of the commercia
ISSN:2153-2818
2153-2826