Purpose The authors aim to examine the association between earnings and book values with stock prices in India during the IFRS convergence period because, in India, the literature is yet to investigate more about IFRS convergence and its impact on the financial reporting environment. Hence, the purpose of this study is to assess the influence of IFRS conversion on the value relevance of accounting information throughout the IFRS conversion period. Design/methodology/approach The current paper endeavors to investigate the earnings and book values affiliation with stock prices in India during the IFRS convergence period by employing a price valuation model (Ohlson’s Model). The study assembled a total of 3,440 firm-year observations from the National Stock Exchange in India over five years, which signifies the IFRS conversion period (2015–2019). Findings The research findings displayed that accounting information such as earnings, book value has value relevance throughout the IFRS enforcement period; however, the value relevance has been increasing for earnings and showing a descending association for book value. The significant explanatory power of earnings reveals that market participants give more weightage to earnings than book values. Overall, the findings of the study will facilitate improved decision making for both, capital market participants and regulators, by highlighting the key areas for improvement in the Indian capital market. Research limitations/implications This study also extends a discussion on the subject in those economies where regulations are weak and the market is imperfect with asymmetrical information. Practical implications The research outcome provides for empirical shreds of evidence regarding the value relevance of accounting information during IFRS enforcement in India, where IFRS is a recent emergence. Social implications This paper examines the value relevance of accounting information during IFRS convergence period in India which will felicitate improved decision making for both, market regulators and investors. Originality/value This research is the first factual documentation regarding value relevance of earnings and book value during the IFRS enforcement process in India with the most recent data and contributes to the limited study conducted in developing nations like India.

Abstract:In the modern world, with the continuous evolution of the financial market, there has been a continuous development of different financial instruments. Derivative trading is becoming an integral part of stock market .In recent years trading volume in stock market has increased tremendously which has led to the high volatility in the option prices. A derivative is a type of such evolved financial instrument which has attracted the financial marketers all over the world. An option is a financial contract between two or more parties whose value depends on a given underlying asset, and any change in the value of the underlying has a subsequent change in the value of the derivative contract. Black-Scholes option model is used for fair value pricing for option contracts. In this research work, an attempt has been made to find out the relevance of Black-Scholes model values with the market values for stock options. This paper aimed to find out the significant relationship between BSOPM and actual market price. As a conclusion, the study found out that the option values have insignificant relevance to the market values.

Purpose This study aims to examine the financial reporting quality during the International Financial Reporting Standards (IFRS) enforcement period in the emerging markets of India and Indonesia by using Ohlson’s (1995) valuation model. The study further endeavors to compare the quality of the reporting environment and its impact on stock prices for both these emerging economies by using a price model during the IFRS conversion period. Design/methodology/approach This paper aspires to obtain insights about the value relevance of accounting information during the IFRS enforcement period for India and its Southeast Asian neighbor, Indonesia which is identical in terms of inclusive growth and development. In that context, 3,325 Indian (National Stock Exchange indexed) and 815 Indonesian (Indonesian stock exchange indexed) firm-year observations were examined by using Ohlson’s price valuation model for five years, representing the IFRS adherence period. Findings The findings of the paper insinuated that the value relevance of book values and earnings, both, have increased throughout the IFRS enforcement period for both economies. However, the investigation revealed that the incremental interpretive power of earnings is more substantial and evident during the IFRS adherence phase than book values which indicates investor’s inclination toward earnings management over book values. Research limitations/implications The findings may assist the regulators, investors, firms and standard setters of both economies in examining the effectiveness of financial reporting curriculums as it brings forth informational improvement in the financial market. This study also outstretches the discussion on the subject in other emerging nations where the market is imperfect with insufficient information, poor enforcement and limited regulations. This investigation has few limitations such as limited data and period, only two emerging economies and two control variables, thus provide scope for future research. Social implications This paper endeavors to investigate and compare the value relevance of accounting information during IFRS convergence period between India and Indonesia with an aim to assist in improved decision making for both, regulatory bodies and market participants in both the countries. Originality/value The key contribution of the study is to examine whether the accounting information is value relevant during the IFRS convergence period for the two fastest-growing economies in Asia, India and Indonesia and it is the first such empirical research to the best of the author’s knowledge. The study is an extended contribution to the modest research administered in developing nations.

Derivative trading, started in mid-2000, has become an integral and significant part of Indian stock market. The tremendous increase in trading volume in Indian stock market has reflected into high volatility in the option prices. The pricing of options is very complex aspect of applied finance and has been subject of extensive research. Black–Scholes option model is a scientific pricing model which is applied for determining the fair price for option contracts. This article examines if Black–Scholes option pricing model (BSOPM) is a good indicator of option pricing in Indian context. The literature review highlights that various studies have been conducted on BSOPM in various stock exchange across the world with mixed outcome on its relevance and applicability. This article is an empirical study to test the relevance of BSOPM for which 10 most popular industry’s stock listed on National Stock Exchange have been taken. Then the BSOPM has been applied using volatility and risk-free rate. Furthermore, t-test has been used to test the hypothesis and determine the significant relationship between BS model values and actual model values. This study concludes that BSOPM involves significant degree of mispricing. Hence, this model alone cannot be adopted as an indicator for option pricing. The variation from market price is synchronised with respect to moneyness and time to maturity of the option.

We endeavor to examine the benefits and the key challenges associated to International financial reporting standards enforcement in India in the current paper. The research is founded on structured questionnaire survey of 150 accounting professionals and applied purposive sampling technique to assemble the data from target respondents from various business sectors of India. The data from secondary sources,conducted through personalized interview, has been examined qualitatively with respect to IFRS convergence.The research outcome contributes to the existing literature stating that the respondents are optimistic about the benefits related to IFRS adoption but the challenges are too a major roadblock. Since the enforcement of IFRS has already initiated in India thus it is imperative to comprehend the benefits and cost associated with IFRS in Indian context. This study results recognizes that though convergence process with IFRS will pose few key challenges but the overall benefit will overweigh the challenges. This study recommends that IFRS training seminars and workshops at massive scale should be embarked upon by regulatory bodies, professional organizations like ICAI, KPMGs and other training institutions to provide for a smooth transition from local standards to IFRS.

This study is conducted to assess the internal audit practice in Kindo Koyisha Woreda Finance and Economic Development Bureau, Ethiopia. Internal auditing is an indispensable tool of the organization to achieve its objective of profitability and to evaluate and enhance its risk management, control, and governance procedures. In the present study, researchers attempted to identify the strength and weaknesses of the internal auditing practice of the organization. To assess this study the researcher uses the descriptive type of the research design and regarding the data are would be collected from both primary and secondary sources. Regarding the sample size, the judgmental or purposive sampling techniques would be used. The total population of the study is 53 from these the researcher select only 20 employees of the organization by using the purposive or judgmental sampling techniques .the internal auditor of kindo koyisha woreda finance and economic development have low understandings of the audit procedure, detail accounting knowledge, and the employees of the organization did not understand the internal control of the organization. But the internal auditory of the organization has good work experience. Based on the above finding the researcher recommends the organization would have to hire CPA qualified auditors because they can match the audit activity with the current principle and standards and the organization to give periodic training for internal auditors about audit guidelines and principles by inviting high-level auditors.

This study was conducted in Gedio zone small scale enterprise financed by micro finance institution. The main objective the study was to evaluate and determine the factor that determines loan repayment performance of small scale enterprise financed by yirgachefeMFI. For the success of the study both primary and secondary data were collected to determine the loan repayment performance of small scale enterprises in Gedio zone. Questionnaire were administered to 50 borrower  and manager of MFI. The data gathered are tabulated and interpreted for ease of analysis and suitability for the reader.

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