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    IFRS Assignment 4

    Uploaded by

    Sandeep Boddu
    Indian GAAP and IFRS differ in several key areas: - Indian GAAP uses historical cost convention while IFRS allows revaluation of some assets and requires fair value measurement of certain instruments. - IFRS does not prescribe a balance sheet format but emphasizes liquidity while Indian GAAP formats are regulated by Companies Act and industries. - Both standards do not specify an income statement format but IFRS requires expenditure presentation by function or nature. - IFRS requires consolidated financial statements for two years while Indian GAAP only one year of parent company statements. - IFRS requires restatement of comparatives for errors but Indian GAAP includes effect in current year income statement. -

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    IFRS Assignment 4

    Uploaded by

    Sandeep Boddu
    613 views3 pages
    Indian GAAP and IFRS differ in several key areas: - Indian GAAP uses historical cost convention while IFRS allows revaluation of some assets and requires fair value measurement of certain instruments. - IFRS does not prescribe a balance sheet format but emphasizes liquidity while Indian GAAP formats are regulated by Companies Act and industries. - Both standards do not specify an income statement format but IFRS requires expenditure presentation by function or nature. - IFRS requires consolidated financial statements for two years while Indian GAAP only one year of parent company statements. - IFRS requires restatement of comparatives for errors but Indian GAAP includes effect in current year income statement. -

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    Indian GAAP and IFRS differ in several key areas: - Indian GAAP uses historical cost convention while IFRS allows revaluation of some assets and requires fair value measurement of certain instruments. - IFRS does not prescribe a balance sheet format but emphasizes liquidity while Indian GAAP formats are regulated by Companies Act and industries. - Both standards do not specify an income statement format but IFRS requires expenditure presentation by function or nature. - IFRS requires consolidated financial statements for two years while Indian GAAP only one year of parent company statements. - IFRS requires restatement of comparatives for errors but Indian GAAP includes effect in current year income statement. -

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    613 views3 pages

    IFRS Assignment 4

    Uploaded by

    Sandeep Boddu
    Indian GAAP and IFRS differ in several key areas: - Indian GAAP uses historical cost convention while IFRS allows revaluation of some assets and requires fair value measurement of certain instruments. - IFRS does not prescribe a balance sheet format but emphasizes liquidity while Indian GAAP formats are regulated by Companies Act and industries. - Both standards do not specify an income statement format but IFRS requires expenditure presentation by function or nature. - IFRS requires consolidated financial statements for two years while Indian GAAP only one year of parent company statements. - IFRS requires restatement of comparatives for errors but Indian GAAP includes effect in current year income statement. -

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    of 3

    DIFFERNCES

    BETWEEN IFRS AND


    INDIAN GAAP

    Submitted to: Submitted by:


    Prof Revathi Iyer K .Anish
    DIFFERNCES BETWEEN IFRS AND INDIAN GAAP

    SUBJECT INDIAN GAAP IFRS

    1. Historical cost Historical cost is the main Historical cost is the main
    accounting accounting
    Convention. However, Indian GAAP Convention. However, IFRS permits
    permits the revaluation of property, the revaluation of intangible assets,
    plant and equipment. Certain property, plant & Equipment,
    derivatives are carried at fair value. inventories in certain industries.
    On adoption of AS 30 and AS 31, IFRS also requires certain
    certain categories of financial categories of financial instruments
    instruments will be reported at fair and certain biological assets to be
    value. reported at fair value.
    2. Balance sheet Accounting standards to not Does not prescribe particular
    prescribe a particular format; format. A liquidity presentation of
    certain items must be presented on assets and liabilities is used instead
    the face of the balance sheet. of a current/non-current
    Formats are prescribed by the presentation, only when a liquidity
    companies act and other industry presentation provides more
    regulations like banking, insurance relevant and reliable information.
    etc., Certain minimum items must be
    presented on face of the balance
    sheet.
    3. Income statement Does not prescribe a standard Does not prescribe a standard
    format; but certain income and format; although expenditure is
    expenditure items are disclosed presented in one of two formats
    accordance with accounting (function or nature). Certain
    standards and the companies act. minimum items must be presented
    Industry specific formats are in the face of the income statement
    prescribed by industry regulations.
    4. Component of Single-entry parent company two Two years’ consolidated balance
    financial years’ balance sheets, income sheet, income statements, changes
    statements statements cash flow statements in equities and accounting policies
    and accounting policies and notes. and notes.
    5. Correction of errors Restatement is not required. The Comparatives are restated and, if
    effect of correction is included in the error occurred before the
    current year income statement with earliest prior period presented the
    separate disclosures. opening balance of assets, liabilities
    and the equities for the earliest
    prior period presented are
    restated.
    6. Revenue Similar to IFRS conceptually, Based on several criteria which
    recognition although several difference in require the revenue when risks and
    detail. rewards and control have been
    transferred and the revenue can be
    measured reliably.
    7. Fair presentation Indian GAAP prohibits departure An entity may depart from a
    override from applicable accounting standard under IFRS, extremely
    standards. If there is a conflicts b/w rare in practice, if the management
    the accounting standards and the of that entity concludes that
    Companies Act, 1956 or industry compliance with the standard or
    regulations, the latter would prevail interpretation would render
    with adequate disclosures financials to be misleading. A
    reason for such conclusion and
    departure along with the financial
    impact needs to be disclosed.
    This override does not
    apply where there is a conflict b/w
    local company law and IFRS. IFRS
    are applied in such a situation.

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