Ind AS Convergence and Its Impact on Value Relevance of Accounting Variables

This study investigates the correlation between accounting variables and stock prices in India from 2011 to 2022, emphasizing the impact of the Convergence of Ind AS with IFRS. Specifically, it explores how this convergence influences the value relevance of accounting data using the Ohlson Model. Beyond established variables like Earnings per Share (EPS) and Book Value (BPS), the analysis introduces additional factors such as Dividend per Share (DPS) and Research and Development (R&D). Employing Ohlson’s Pricing Model (1995), the research assesses the relationship between these accounting variables and stock prices for 47 consistently listed firms in the NIFTY 500 index. Results show that DPS and R&D enhance the value relevance of the Ohlson Model, with the adjusted \(R^{2}\) increasing from 0.2 in 2011 to 0.6 in 2022. While overall value relevance improves after Ind AS convergence, BPS remains consistent when controlling for EPS.