The IUP Journal of Accounting Research and Audit Practices
Focus
The process of stabilization and structural adjustment programs initiated by the
countries across the world led the respective governments to liberalize, privatize
and globalize the industries in their country. This process led to the flow of investments from the countries with surplus fund to countries with opportunity. In the process, the investment flow faced hurdles due to issues like transparency of the firms listed on the stock exchange and the inability to understand the accounting concepts of the respective countries. Thus arose the need for a uniform code of financial accounting and disclosure practices, leading to the framing of the International Financial Reporting Standards (IFRS). The IFRS has already been adopted by some countries (jurisdictions), while in other jurisdictions, it is converged with for adoption in entirety after a certain convenient time. In the first paper, “A Study of Convergence of Indian GAAP with IFRS and the Major Carve-Outs”, the authors, Soheli Ghose and Abhishek Prahaladka, make an attempt to present the history of and challenges to convergence of Indian accounting standards with IFRS. The authors focus on the impact of convergence of Indian accounting standards on the financial statements of the companies.
In the second paper, “Convergence with IFRS: The Case of Infosys Limited”, the authors, Saurabh Khaira and Joy Chakraborty, discuss the reporting practices followed by the company for the investors abroad and the domestic stakeholders by adopting two different accounting standards of different countries. The authors compute a few important financial ratios to explain the impact of variations in the accounting standards.
In the last paper, “A Comparative Analysis of the Financial Performances of Selected Indian IT Companies During 2010-2014”, the author, Rohit Bansal, conducts performance evaluation of major companies in the Indian IT sector—Wipro, Tata Consultancy Services, Tech Mahindra and Infosys—to analyze and estimate the earning capacity, financial soundness and operational efficiency of the firms.
Automated Teller Machines (ATMs): The Changing Face of Banking in India
Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.
The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario
If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.
Indian Scenario
The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.
