With increasing globalization and integration of capital markets, the world is fast adopting a single language of financial reporting, i.e., International Financial Reporting Standards (IFRS). More than 100 countries have adopted IFRS and many others have given their consent to adopt IFRS in the near future. India is in line to converge with IFRS. This paper investigates the impact of IFRS adoption on financial activities of Indian companies by using a sample of eight companies for three years, 2010-11 to 2012-13. The study considers four areas of financial activity, i.e., financial risks, investment activities, operating activities and debt covenants. The results reveal that the financial indicators, investment activities and operating activities have been significantly affected by the adoption of IFRS, while financial risks and debt covenants fail to show a statistically significant impact.

In the last few years, increasing globalization and integration of capital markets have made it imperative to harmonize accounting standards across the globe. It is becoming very difficult for investors to compare the financial statements of entities located across different countries. Investors need financial reporting which gives consistent comparability across countries. In an era of increasing globalization, it is very essential to have a single language of financial reporting.

As a result of this, International Financial Reporting Standards (IFRS) have gained momentum all around the globe. IFRS are becoming globally accepted accounting standards for the globally integrated capital markets. International accounting convergence is becoming an important topic for regulators, professional bodies, global investors, government and all other stakeholders who use the financial information of public companies.

IFRS, issued by International Accounting Standards Board (IASB), are now considered to be premier global reporting standards of accounting information across globe. At present, more than 100 countries have adopted and many other countries, including the US, have expressed their willingness to adopt IFRS in their countries.

Accounting Research and Audit Practices, International Financial Reporting Standards (IFRS), International Accounting Standards Board (IASB), Institute of Chartered Accountants of India (ICAI), Ministry of Corporate Affairs (MCA), IFRS Adoption, Financial Activities, Companies, Empirical Study.