Influence of Transnational Economic Alliances on the IFRS Convergence Decision in India-Institutional Perspectives Highlights  Decision-making for IFRS convergence within nation states significantly influenced by traditional trade and economic alliances.  Influences exerted through transnational policy networks between institutional fields  Impact of influences determined by power balance between local and transnational actors embedded in different institutional fields.  Indirect effect of US delays in IFRS convergence on India as a result of cross country economic ties.

While International Financial Reporting Standards (IFRS) convergence has been the face of the global accounting standardisation movement for the past few decades, accounting reforms in the public sector had started to gain momentum from the late 1990s. This paper examines the reasons for the adoption of public sector accrual accounting reforms in India. It explores the various sources of pressure influencing these reforms and the ways in which these pressures are balanced and addressed by key decisionmakers in the national and transnational contexts of an emerging economy like India. This study finds that demands for greater accountability from the public in the national context (demand pressures) as well as requests for greater transparency from international financial institutions in the transnational context (supply pressures) are two major sources of pressure that are balanced by the state in its quest for greater legitimacy. This is demonstrated through a triggering event such as political scandals evoking responses from the government to reinforce its weakened legitimacy by adopting public sector accounting reforms. Extant literature on public sector accounting reforms, mostly focuses on the phases where the standards are being actually implemented by the This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

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