Accounting Standard Disclosure Compliance in Online Reporting by Indian Companies

Abstract

This research paper examines the extent of compliance of web-based corporate disclosure with the requirements of Indian Accounting Standards (AS). The online annual reports were available for 132 companies, out of the total sample of 200 companies and these were studied for their compliance to AS. A worksheet has been prepared to determine disclosure score known as Accounting Standards Disclosure Index (ASDI). The relationship between accounting standards disclosure index and company characteristics including nature of industry, affiliation to business house, age, size, profitability, liquidity, ownership and leverage has been studied. Results reveal that relationship between industry sector, affiliation with business house and profitability of company with accounting standards disclosure index is significant.