Effect of Ind AS on Earnings Management in Selected FMCG Companies in India

  • G Nandini Ph.D. Research Scholar, Sri Ganesh College of Arts & Science, Tamil Nadu, India
  • T.A Tamilselvi Assistant Professor, QuaideMilleth College for Men, Medavakkam, Tamil Nadu, India.
Keywords: Ind AS, Earnings management, Jones model, Corporate frauds


The Corporate frauds have increased drastically which is witnessed in the last decade in India and around the world. Managers use their judgement in analysing the financials and modification of statements which is the origination for earnings management. This paper discusses about earnings management evaluation after adoption of Ind AS for the first time by leading fast moving consumer goods companies in India. Random sampling is used to select three companies and analyse for a period of 6 years (2014-2020)

The Jones Model (1991) is used for evaluation of earnings management and tested using the regression model to arrive at the findings. The Jones model of non-discretionary accruals is used for the purpose of evaluation of accounting manipulation. The Jones model has non-discretionary and discretionary accruals estimated in the model. The R square is 14.3% and F-test significance value is greater than 0.05 therefore null hypothesis is accepted concluding there is no change in earnings management after the new standards.

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